C&F University: your source for all things mortgage related.
Need more information before making the next step to financing your home? C&F Mortgage is focused on helping all homebuyers navigate the home financing journey with ease. We’ve built robust tools and resources to allow you to expand your mortgage knowledge and build home financing confidence. Did you know you could have as low as a 0% down payment to buy a home? Learn more >>>
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Home Financing Process
Frequently Asked Questions
Products and Programs
Mortgage Interest Rates
Home Financing Process
We are focused on you and helping you navigate your home financing journey. Below is a snapshot of the process:
1. Contact your C&F local industry expert
Meet with a C&F loan officer either online or in-person and submit your mortgage application. After initial review, you will then be pre-qualified for a mortgage loan.
2. Find your dream home
During this period, your C&F loan officer can provide estimates for homes you may be interested in while you work with your real estate agent to find the right home.
3. You’ve got a contract!
Once you are under contract we will regroup, update
any expired documents and discuss your initial loan disclosure package.
After your disclosure package has been signed, your loan will move to processing where information will be gathered to submit to underwriting. Services, such as an appraisal and title, will be ordered. During this time, your interest rate will likely be locked in and you will receive a Loan Estimate.
The underwriting department will decision your loan and will likely be conditionally approved, meaning its approved as long as certain criteria are met. Your C&F loan officer and processor will contact you to collect any additional documentation needed for underwriting conditions and resubmit your loan for final approval if necessary.
Once your loan is through underwriting, it will move to our closing department. Our closer and your settlement agent will work on preparing your final figures. You will receive a closing disclosure to sign no later than 3 business days prior to closing.
7. Congratulations! You now own your home!
On the day of closing, you will sign your closing package and get the keys to your dream home!
Frequently Asked Questions
How much do I need for a down payment?
The most frequently asked question when buying a home is usually “How much down payment are we going to need?” You may hear you need 20% of the purchase price but you can actually buy your home by putting as low as 0% down with certain program options. Call your C&F loan officer for loan programs that offer low down payment options.
How can I help ensure a smooth loan process?
- Keep the lines of communication open with your loan officer.
- Respond quickly to requests for additional information or documents.
- Be assured that we do not ask for more than is absolutely necessary based on current mortgage loan requirements.
- Advise your loan officer immediately of any change to your financial profile: job change, additional debts, credit inquiries, etc. Serious consequences may result if you sign final closing documents without doing so.
Why does the APR differ from the interest rate?
In addition to the interest rate, the APR also includes other costs like prepaid interest and mortgage insurance, as well as other fees. As a result, the APR is usually higher than your interest rate.
What is a Loan Estimate?
A Loan Estimate is a three-page form that you receive within three business days of your loan application.
The Loan Estimate discloses important details about the loan you requested, including monthly payments, estimated cash to close, and a detail of the closing costs involved in the transaction.
What is a Closing Disclosure?
At least three business days prior to closing you will receive a Closing Disclosure, which is a five-page document that gives you the final details of your loan. It outlines how much you are paying in fees and other costs to obtain your mortgage.
Can I become a homebuyer even if I have had some previous issues with my credit and/or do not have much for a down payment?
It is certainly possible. Please contact your C&F Loan Officer for a detailed analysis of your particular situation.
What is included in my monthly mortgage payment?
- Principal: the repayment of the amount you actually borrowed
- Interest: payment to the lender for the money you’ve borrowed
- Homeowner’s Insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards
- Property Taxes: the annual city/county taxes assessed on your property
- Mortgage Insurance: a monthly amount to insure the loan against a borrower defaulting. (not always required)
What does MI mean?
Mortgage insurance is usually required on a conventional loan any time that the down payment is less than 20% of the sales price (or the appraised value if the appraisal is lower than the sales price) of the property. Premiums vary based on the amount of down payment and credit scores. Higher coverage is required with a lower down payment to address the greater risk. This insurance protects the lender should you default on the loan and it’s required by the investor. On an FHA loan, it’s automatically required upfront and monthly.
What are closing costs and how can I anticipate what they will be?
Closing costs typically range between two to five percent of the purchase price of your house. You will receive a Loan Estimate outlining these costs within three days of your completed loan application.
What does it mean when you “lock in” a rate?
Mortgage interest rates can change daily and sometimes hourly. If your rate is locked, your rate will not change from the lock in date to the closing date as long as you close within the specific time frame and there are no changes to your loan application.
What is an escrow account?
Lenders put a portion of your monthly mortgage loan payment into an escrow account to cover your homeowner’s insurance, flood insurance if applicable, and your property taxes. When these payments are due, the loan servicer pays them from your escrow account on your behalf.
What is a fixed rate mortgage loan (FRM)?
A fixed rate mortgage carries the same rate for the term of the mortgage loan. The interest rate and term are fixed at the start of the mortgage loan. The monthly amount for the payment of principal and interest will not change during the term of the mortgage loan, regardless of market conditions.
What are points and should I pay them?
Points and discount points are the same thing. They are percentage points of the loan amount. They are an elective fee that you may choose to pay at the time of closing. They reduce the interest rate that you pay. Your C&F Loan Officer will help you look at the options.
What is title insurance?
Title insurance is a policy that guarantees the accuracy of the title work done on your home at the time of purchase or refinance and is provided by the title company. As a buyer, you are required to purchase a lender title insurance policy, which only protects the mortgage company, as part of your standard closing costs. You can choose to purchase an owner title insurance policy, which would protect you against any loss in the event of any legal issues relating to the title of your home.
To provide you with an accurate pre-qualification and process your loan application, your C&F Mortgage local industry expert will ask you for a variety of documentation. Below is a basic list of items so that you can be prepared. Please note different programs require varying documentation. The majority of this documentation is automatically captured by our intuitive online application: C&F Express.
- Photo ID
- Past 2 years of tax returns with all schedules and W-2 statements (not always required)
- Pay stubs covering the last 30 days
If you move forward
- Most recent transaction summary of 401(k), IRA, or Mutual Fund Accounts
- Photocopies of any stocks or certificates of deposit
- Copy of the purchase and sale agreement
- If you are currently renting: either 12 months of canceled rent checks or the name and address of your current landlord
- If divorced: a fully executed divorce decree
- For a refinance: a copy of the deed and most recent tax bill
- A letter of explanation for any known credit problems
For borrowers who are self-employed, employed in sales, paid by commission, or rental real estate owners
- 2 years of signed personal tax returns, including all schedules
- If self-employed through a corporation, last two years of corporate returns as well as a year-to-date profit and loss statement and balance sheet
Use these handy resources to determine your anticipated homebuying costs, based on the interest rate, down payment, and the other variables of your unique situation.
Products and Programs
We provide the best financing options to meet your specific goals. We are equipped with the right loan solutions and years of industry expertise to enable us to exceed your expectations. Your C&F local industry expert will explain these products in detail and help you determine which loan is best for your individual situation. We specialize in first-time homebuyers and have low-to-no down payment options available so you can take the stress out of home financing.
Interest rates fluctuate daily, sometimes hourly, the best way for you to obtain your ideal rate is to reach out to a C&F local industry expert.
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