1. Can I obtain a pre-approval before finding a property?
Yes. It's always a good idea to know the amount of financing you qualify for before you begin shopping for a home. Additionally, having a lender pre-approval in hand will strengthen your offer in the eyes of the seller. Our pre-approval will help you determine the monthly payment you can afford and the amount of cash required to close the transaction.

2. How quickly will my loan be approved?
You may apply online and be pre-approved in minutes or you can call a Real Estate Specialist at (877) 732-2848 or come into one of our convenient branch locations. The approval will be subject to our receipt and review of your appraisal and preliminary title report and verification of the information on your application.

3. How long does it take to close my loan?
We can close a refinance loan in as few as 21 days and a purchase loan in as few as 15 days. This is because we are a direct lender giving us control over the approval process, drawing loan documents and funding the loan. Additionally, the third party service providers we work with, such as appraisers and title insurance companies, prioritize our orders because we provide them with a high volume of quality business.

4. When can I lock my interest rate?
On purchase transactions, you must have pre-approval and have an accepted offer on a property before you can lock a rate. On refinance transactions, you may lock your rate at the time of application.

5. How do I lock my interest rate?
To lock your rate, simply complete the Secure Online Lock-in Agreement on our website (Step 1 of the 3-Step Process) or contact a Real Estate Specialist at (877) 732-2848 or come into one of our convenient branch locations. Upon submission, a printable Online Lock Confirmation will appear, giving you a record of the terms you have locked in. The Online Lock Confirmation will show the loan program, loan amount, rate, points and total guaranteed fees. Your lock terms are subject to obtaining a loan approval.

6. How soon after I sign loan documents will my loan close?
On all purchase transactions and on rental property refinance transactions, we can typically close within three days (one day to review the docs, one day to fund the loan and one day for the loan to record). On primary residence and second home refinances, there is also a three day rescission period that must pass before your loan can fund.

7. Do your loans have prepayment penalties?
Most of our loan programs do not have prepayment penalties, giving you the ability to prepay your loan and refinance if rates fall. If the interest rate environment justifies it, we may occasionally offer a special promotion with a prepayment penalty, but it will always be clearly disclosed in the promotion disclosure.

8. What are loan points?
Points are fees paid to reduce the interest rate you pay on a loan. Each loan "point" is equal to one percent of the loan amount. Your decision on whether or not to pay points depends on how long you plan to keep the loan, your tax situation and other factors. SDCCU® does not charge 'origination' points. SDCCU does have 'discount' point options to buy down the interest rate.

9. What is a "no cost loan"?
A no cost loan is created by using lender rebates to offset all normal loan closing costs. To obtain the rebates, the borrower must take a slightly higher interest rate and the lender hopes to recapture the waived fees in the form of additional interest earned over the life of the loan. There may also be a pre-payment penalty - see promotion details for more information.

10. What is PMI?
PMI is Private Mortgage Insurance. PMI is charged on loan amounts exceeding 80% of the purchase price of a home. It is also charged on loan amounts refinanced that exceed 80% of the value of the property. The mortgage insurance protects the lender against loan default.