The right mortgage for you
Whether you’d like to go with the traditional 30 year fixed rate*, or you’re more interested in something flexible for your vacation home, we’ve got the mortgage for you. Just let us know you’re interested and we’ll get you in touch with one of our loan experts.
- Fixed Rate Mortgages
- Adjustable Rate Mortgages (ARM)
- Owner Occupied, Second Home
Special programs to get you in the door
We have a variety of programs that can make your home buying journey headache-free, including special deals for first time buyers, and our 5/5 Adjustable Rate Mortgage**, which could save you hundreds each month. Our Home Rewards program provides expert guidance on your home search, and can help you earn a 20% commission rebate when you are buying a home or a flat 1.5% listing fee when you are selling your home. Just get in touch with us to learn more.
- 5/5 Adjustable Rate Mortgage
- Own Your Own Financing
- First Time Home Buyers Program
- Home Rewards program with 20% commission rebate or sell your home for a flat 1.5% listing fee
No points, no fuss, no problem
- Borrow up to $625,500 with only 5% down (95% Loan-to-Value).
- Rates adjust just once every five years.
- Maximum lifetime adjustment never exceeds 5% over the initial rate. Rates adjust (up or down) a maximum of 2% during an adjustment period.
- Completely straightforward—no negative amortization, no balloon payments and zero pre-payment penalties.
- No closing costs also an option for loan amounts between $250,000 and $625,500.
There are 5 easy ways to make your home loan payment
- From your LBS Financial Savings or Checking account – Payments can be made using the transfer option within Online Banking or Mobile Banking. Please note that money will be immediately debited from your LBS Financial Savings or Checking account and applied to your mortgage loan later that evening, if set up before 8 p.m. If set up after 8 p.m., the money will still be immediately debited from your account but will not be applied to your mortgage loan until after 8 p.m. the next business day.
- From an Account at Another Financial Institution- Located in the Mortgage Center section of Online Banking or Mobile Banking.
- Electronic Payments Set Up by the Credit Union- Set up your recurring transfers to withdraw funds on the 1st, 5th, 10th, or 15th of the month. You must complete the Authorization Agreement for Automatic Mortgage Payments form at any branch or contact our Call Center at 800.527.3328.
- Call Us- Contact our Call Center at 800.527.3328 to make a payment by phone.
- Mail Us Your Payment- Mail us your payment each month to: LBS Financial Credit Union, P.O. Box 4860, Long Beach, CA 90804
Visit the Home Loans section of our website for details about the products and services we offer. We offer online pre-approvals, rates and detailed information within this section and our Mortgage Web Center.
There are three ways you can start the process: apply online, call 800.527.3328 and ask to speak with one of our loan experts, or call us to schedule an appointment to meet a loan expert at one of our branches.
The meeting will last approximately 1 hour and will be held either at the Escrow Company’s office or a Notary may come to your home. The steps below explain what happens during and after closing:
- The respective closing agent reviews the settlement sheet with you.
- You sign all loan documents.
- You then present a certified or cashier's check to pay closing costs (if applicable).
- If your monthly payments are to include property taxes and insurance, a new escrow account (or reserve) is opened when the loan is funded.
- The loan is funded by the Lender. The funds are transferred to the Escrow, who in turn, instructs the Title company to set up recording of the documents. The Deed and any other documents are usually recorded the following day. Once recording is confirmed, the Escrow agent can disburse funds for any payoffs. Remaining funds are sent to you with the HUD Settlement Statement.
Prior to the closing, our Residential Lending Department closer will contact you to let you know the amount of funds you must bring to the Closing Meeting. Personal checks are not accepted--cashier's checks only.
The closing (or settlement) of the loan is an actual meeting that takes place at the Escrow Office, one of our branches, or the escrow's signer can come to your home or place of employment. At that time, you'll be asked to sign the closing documents and pay any outstanding closing costs you are responsible for.
If you are a first time home buyer and your home loan exceeds 80% loan to value, you will be required to purchase Mortgage Insurance and attend a First Time Home Buyers Seminar. You can learn more about home buying and take the First Time Home Buyers test online. Be sure to enter the Buyers Ed Code: firstname.lastname@example.org.
That depends on you and your current financial situation and long term financial goals. The following is a brief analysis of each type of loan, and the benefits of choosing one type over another.
- Fixed Rate Loans
Fixed Rate Loans, by their very nature, are the most stable of the loan categories. With interest rates and payments fixed over the life of the loan (generally 15, 20 or 30 years), homeowners can rely on knowing exactly what their mortgage payment will be each and every month. If it is important to you to have your rate and payment constant, or if you plan to be in this home for a long period of time without moving, a fixed rate loan may be the best option for you. See Mortgage Loan Rates.
- Adjustable Rate Mortgages (ARMs)
Adjustable Rate Mortgages (ARMs), conversely, often offer low start rates that then change with the marketplace. It is the low start rate that makes ARMs more attractive to many borrowers. An ARM is a great option if you are planning to move from this home within a few years. By having a low start rate, borrowers benefit from increased buying power, with the ability to afford a higher loan amount than with many fixed rate loans. Buyers, however, need to keep in mind that the rates can change dramatically once the fixed-rate period ends. Even with pre-set life caps, which limit how much the rate can "adjust," rates can increase substantially. See Mortgage Loan Rates.
- Fixed/Adjustable Combination Loans
Fixed/Adjustable Combination Loans are described by many as the "best of both worlds." These loans enable borrowers to enjoy the stability of a fixed rate loan during the early years of the loan, while also experiencing the increased buying power of an ARM. Start rates on this type of mortgage are often lower than standard fixed rate loans. Fixed/adjustable combination loans are often ideal for individuals who anticipate earning greater income during the later years of the loan, but would benefit from a lower payment in the beginning. See Mortgage Loan Rates
PMI is a necessary expense when you buy a house with less than a 20% down payment. PMI is additional insurance written by a private company protecting the mortgage lender from mortgage default.
Plan on 1%-3% of the market value of your home. For example, if your home has a market value of $500,000, property taxes might be $5,000 to $15,000, depending on where you live. If your property is located in a Mello Roos bond area, property taxes may be affected. Ask your LBS Financial loan specialist about your specific property area.
A ratio of the amount of money you wish to borrow compared to the value of the property you wish to purchase. An 80% LTV on a $100,000 property would equal an $80,000 loan. The property value is determined by either the appraised value or the purchase price, whichever is less.
A neutral party who holds the legal documents and funds on behalf of a seller and buyer or a lender and a borrower, until the parties have satisfied all of the conditions to "close."
A fee collected by the lender for allowing you to borrow money to purchase or refinance property. The fee--also known as "points" is usually expressed as a percentage of the total loan amount. One point equals 1% of the loan amount.
Here is a list of the information you should collect and have ready once you accept our Loan Estimate (following the application). Original documentation, when requested, is preferred and will be returned to you promptly.
|Loan Application||Loan application form||Loan application form signed and dated by all applicants|
|Self-employed||Most recent two full years of tax returns (individual, corporation, or partnership)|
|Other Income||Other income requirements||If Other Income is needed to qualify for the loan, supporting documentation and history of receipt may be a requirement.|
|Assets||Evidence of sufficient funds when closing||
|Obligations||Evidence of financial obligations (debts)||Copy of the fully-executed Divorce Decree indicating amount of child support, alimony, or separate maintenance payments|
Wise investors usually order a credit report to review its accuracy. This step gives them a chance to address any errors or mishaps before approaching the lender. As part of the process, LBS Financial will eventually order your credit report, so it's a good idea to address it beforehand so as to avoid delays. Note that LBS Financial cannot use the credit report you have obtained and will need to order a credit report as well.