Mortgage FAQs

How long does it take to obtain a mortgage loan?

• In today’s environment, on average, it takes between 40 and 55 days from the date of your application to close your loan.

What do I need to provide you with?

• This is dependent upon your individual circumstances but generally you will need to provide bank statements, W-2’s and pay advices. If you are retired or self employed, there will be additional documentation required.

Where will my closing be?

• Closings in the Hudson Valley are normally scheduled at our main corporate office located at 15 Scott’s Corners Drive in Montgomery NY.

What will my closing costs be?

• This is dependent upon many factors and will be disclosed to you in a Good Faith Estimate.

Do I need to escrow?

• Although not required, it is recommended that you obtain an escrow account with the Bank.

Do you service your loans?

• We service the majority of the loans that we originate, right here in the Hudson Valley.

Will I have a prepayment penalty?

• We do not have prepayment penalties on any loan that is not a “no closing cost” option.

Do I need Mortgage Insurance?

• This is dependent upon your individual loan but Mortgage Insurance is generally required on loans over 80% Loan-to-Value.  The Bank does originate "Portfolio" loans up to 85% Loan-to-Value without Mortgage Insurance

Where do you lend?

• We lend primarily in the Hudson Valley including Orange County, Sullivan County, Ulster County and Dutchess County.  The Bank will originate loans outside of the Hudson Valley that meet FHLMC guidelines.

When can I lock my loan?

• You can lock your loan at any time from application to 10 days prior to closing.

What happens if my rate lock expires?

• If your rate lock expires, you may be charged a fee to extend your rate lock.

Will I need an appraisal?

• You will be required to have an estimate of current market value performed on all loans. The type of valuation is dependent on several factors including loan type and loan amount.

Do I need a prequalification letter?

• A prequalification letter assures the property seller that you are a qualified buyer and may give your offer more weight. Additionally, a prequalification will potentially uncover any weakness and enable you to correct or strengthen same prior to submitting an application.

Do I have to have perfect credit?

• A high credit score will provide a borrower with more options. However, credit is only one factor in the loan decision. Your credit history needs to demonstrate both a willingness and ability to repay on time. Explanations regarding derogatory credit will be taken into consideration.

What is LTV and why does it matter?

• LTV stands for Loan to Value. It is the total amount of liens on the property divided by its appraised value. If the subject property is a purchase transaction, the LTV will be based on the lesser of purchase price or appraised value.

What is the maximum percentage of the property’s value that can be borrowed?

• The maximum percentage of value depends on the property type, occupancy and loan type.

How is an appraisal obtained?

• Walden Savings Bank will order the appraisal upon receipt of the application fee. The appraiser will need access to the home. The appraiser is an independent appraiser that has been approved by the Board of Directors. You will receive a copy of the appraisal after it has been reviewed by the Bank.

What is the difference between the interest rate and Annual Percentage Rate (APR)?

• The interest rate is used to calculate your monthly payment. The Annual Percentage Rate (APR) is the total yearly cost of a mortgage loan. It is stated as a percentage of the loan amount which includes the interest rate, mortgage insurance, loan origination fees, and points.

Should I pay discount points?

• To determine if you should pay discount points, you need to compare the cost of the discount points to the amount saved in the monthly payment and consider the length of time that you anticipate having the loan.

Are there any special requirements for a condominium?

• There is additional documentation to determine if a condominium meets our guidelines. A condominium questionnaire must be completed by the property management company or homeowner’s association. Additionally, a copy of the bylaws and most recent budget will be evaluated. Acceptable insurance covering the development will also be required from the homeowner’s association.

Will you need to see my tax returns?

• Typically the most recent two years of your federal tax returns are required if you are self employed, or commission, bonus, rental income or interest and dividend income needs to be verified. Both personal and business tax returns must be evaluated.

What is title insurance?

• Insurance that protects the lender and/or homebuyer against any loss resulting from a title error or dispute. Walden Savings requires a mortgage title insurance policy in the amount of the loan.

What is mortgage insurance?

• Insurance that insures the lending institution against a borrower’s inability to repay the loan. In general it is required on loans over 80% LTV (Loan-to-Value).

Do I need homeowner’s insurance?

• Walden Savings Bank requires evidence that all mortgage loans have a current paid policy providing dwelling coverage in at least the amount of the loan.

Do I need flood insurance?

• Federal law requires that Walden Savings Bank ascertain if the property is located in a special flood hazard area (SFHA) as defined by FEMA (Federal Emergency Management Agency). If the property is located in a flood area, then flood insurance coverage is required.