SECOND MORTGAGE DOCUMENTATION

 

Equity – 80% of appraised value, less the first mortgage balance. Home must be owner occupied and located in Connecticut.

 

THE LOAN APPLICATION PACKET

To avoid any unnecessary delay in processing your application for a second mortgage, please answer all the questions completely.

 A.  The borrowers who are husband and wife may complete the same application. 

      However, borrowers who are not husband and wife must complete separate

      applications.

B.     The debt and asset section must be filled in completely. The debt section must include all open loans, account numbers, balances and monthly payments. 

C.     The other papers in this packet just need to be signed and returned:

-         Notice to Home Equity Applicants is for your information.

-         Blanket consent form gives us permission to look into your credit, employment, etc.

 

ADDITIONAL ITEMS YOU NEED TO RETURN WITH APPLICATION

A.  A copy of the most recent paystub and the previous two (2) years W-2’s are required                  

      for each borrower.

B.  If either borrower is self-employed or has rental or other miscellaneous income, a full     

      copy of the previous two years income tax returns is required. 

C.  A copy of your Homeowners Insurance Policy. 

D.   A copy of your first mortgage statement (if your company provides one for you). 

E.   ]Application fee of $300.00 plus Title Insurance ($25.00-$70.00) depending upon amount borrowed. This fee pays for the appraisal ($120.00), title search ($25.00), Life-of-Loan Flood Certification ($18.00), and filing/recording fee ($81.00-131.00).

PROCESSING

You will be receiving a Good Faith Estimate and a preliminary Truth-In-Lending Disclosure Statement in the mail. You need to sign, date and return them once you have reviewed them. The processing time for your Second Mortgage Loan can be up to two or three weeks. Please call if you have any questions.

APPROVAL 

Upon final approval, you will receive a mortgage commitment letter. Each borrower must sign and return it to the Credit Union indicating acceptance of the terms and conditions of approval.

THE INTEREST RATE WILL BE LOCKED IN FOR A PERIOD OF 60 DAYS FROM THE TIME OF APPLICATION

CLOSING AND DISBURSEMENT OF LOAN PROCEEDS

A.  The date and time of the closing will be established between the borrowers and the     

      loan officer. All borrowers must be present and the closing will take place at our  

      office at 300 Research Parkway, Meriden, CT 06450.

B.     Before we can close, the Credit Union needs to be listed as “Second Mortgagee” on your homeowner’s insurance policy. You will need to contact your homeowner’s insurance agency or company to obtain a binder of insurance. The binder must contain the following information:

           1.  Borrowers names

                 2.  Property Address

           3.  Amount of dwelling coverage on your home (this should be high enough to           

                cover both your first and second mortgage balances unless you have the               

                endorsement for replacement cost on the dwelling).

4.  The State Police Credit Union, Inc. listed as second mortgage.

                 5.  The effective and expiration dates of coverage.

C.     A notice of Right to Cancel will be signed at the closing by the owners of the property. This document allows you to withdraw from the transaction without penalty or obligation within three business days following the closing date. On the fourth business day, provided the transaction has not been canceled, the loan proceeds will be disbursed.

D.  Your signature(s) on the Mortgage Deed will need to be notarized. Since a Notary        

             Public requires identification, please make sure that you bring a picture I.D. to the   

             closing.