As a guideline, about 28% of your gross annual income should be allocated for housing expenses. Simply divide your gross annual salary by 12, and multiply that figure by .28. That will give you an estimate of the amount not to exceed per month for a mortgage payment. Also, keep in mind that you may have other debts as well. These recurring expenses and bills, added to your housing expense, should not exceed 36% of your monthly income. (Examples of recurring expenses are: electric bills, gas bills, auto payments, student loan payments, etc.) Our free pre-qualification program will allow you to determine the maximum amount you can afford.

Generally, you can put down as little as 0% to 3% of the purchase price, or as much as you want above that percentage. Of course, the more you put down, the more flexible we can be with the qualification ratios.

At application, you will need:

• W-2 for last two years and one month's recent pay stubs
• Place of residence for the last full two years
• Employer name, address and phone number for the last full two years
• Fully executed agreement of sale signed by both buyer(s) and seller(s) when buying a home or a copy of the deed if refinancing
• Bank names, account numbers and balances
• Most recent bank statement for the last month, all pages
• $375 application fee payable to FMFCU which covers the cost of the appraisal, credit report and flood certification
• If self-employed, last two years' tax returns with all schedules
• Green card for permanent resident aliens
• Account numbers, addresses, balances/monthly payments on all open loans and credit cards

You might be able to lower your monthly payment or term and increase your savings. Also, you may want to consolidate other debt into one monthly payment or you can borrow the equity in the home to make home improvements.

It depends. If the current rates are one or more percentage points lower than your interest rate, refinancing could help you save considerably on your monthly payments. There are, however, some important factors to consider before making the decision to refinance:

Do you plan to move within the next few years? Because of the closing costs involved with refinancing, you would not save much money if you refinanced and then moved shortly thereafter. In fact, it would cost you money. Generally, it will take you one year to recover closing costs from refinancing. After that, you will realize the savings for years to come.

Give this formula a try to see how refinancing would work: If your original mortgage amount was $100,000 at 8.5% for 30 years, your monthly payment (principal and interest only) is $768.91. If your new rate were 6.875% for the same term, your new payment would be $656.93, saving you $111.98 per month.

FMFCU has hybrid ARM products available that offer a discounted beginning rate, which can be useful if you are considering moving in the next few years.

Points are a one-time charge by the lender, which allow you to obtain a lower interest rate. One point is equal to one percent of the mortgage amount. FMFCU offers a zero point option on its fixed-rate mortgage products.

FMFCU will extend a mortgage based on the appraised value of the home or the purchase price, whichever is lower.

Absolutely. Your FMFCU mortgage means no coupon books and no monthly invoices to misplace. With this pre-authorized deduction option, your mortgage payment will be taken monthly from the account you designate. It's an easy way to make your monthly payment, and you won't have to lift a finger! All you need to do is make sure you have sufficient funds in your account by the first of the month, and we'll do the rest.

You should be prepared to sign various paperwork at settlement, including the mortgage, note and all disclosures. Be sure to bring the following with you: two forms of valid identification; remaining down payment and closing costs in the form of a certified check or cashier's check, payable to the title insurance company, and a paid receipt for your homeowner's insurance.

We will meet your closing date on purchases as long as there is a reasonable time frame until the scheduled closing. If we have all of your required documentation and the appraisal and title insurance are complete and acceptable, we can usually close in 20 to 30 days. Refinances generally can close within 45 days, depending upon current mortgage volume.

Yes, we lend mortgage money in all states except California and Texas.