What are the financial guidelines to pursuing a home mortgage through the University? The University will supply, subject to the income calculation and maximum loan limit, the lesser of 90% of the purchase price or the appraised value. The eligible employee must supply a minimum of 10% down payment.
If I am eligible, does that assure me approval for a loan? No, it is not assumed that you are pre-approved solely by eligibility. However, the Treasurer's Office can provide assistance in determining the maximum loan that you could qualify for.
Does the University lend the eligible employee the funds or is it subsidized through a local bank? Currently, the funds are financed solely by the University.
Can I refinance? Not with Washington and Lee University. Should you wish to refinance a Washington and Lee mortgage, you must work with another lender. In addition, you may not bring an existing mortgage with another financial institution into the Washington and Lee program.
How do I make mortgage payments? Washington and Lee University requires that an employee's mortgage and home improvement loan payments be made through payroll deduction.
My employment will begin after we close on the house, how do I make payments? The eligible employee will contact Lori Oliver, Program Manager, in the Treasurer's Office to establish payment arrangements prior to your employment.
Can I add my closing costs into the mortgage loan? No, the policy clearly states the criteria for the funds; therefore, including the closing costs is not allowed.
Does the University escrow for insurance and real estate taxes? No, homeowner's insurance and real estate taxes are a separate cost borne by the employee. It is required prior to closing that you establish home owner's insurance at the minimum in the amount of the loan making the University first lien holder. At anytime you make changes to your policy, the University needs to receive a certificate of insurance identifying the change.
Can I obtain more than one mortgage through the University and/or if I am ready to close on my current purchase, but the buyers for my home are not ready to close, can I continue with the purchase of my new home and still maintain the old one until it closes? The policy is very clear as it relates to the requirement that one loan must be satisfied before an additional loan can be made. Before the University will remit a check on a new mortgage, all prior mortgages and home improvement loans must be satisfied.
If I need to submit an invoice on behalf of my home improvement or construction loan and I need a check processed the same day, is there a charge? There is a $25.00 processing fee for each manual check. The employee must make this payment prior to release of any funds.
My contractor needs a cashier's check, does the University prepare these? No, the University is not equipped to process cashier's checks. Any special circumstance that requires a cashier's check, the University will make the necessary arrangements with the financial institution and have the cashier's check processed within 5 days. There is a $25.00 fee for processing such requests.
Who orders the appraisal? The appraisal shall be ordered when the loan request has been approved. It is ordered by the University with a turnaround time typically of two weeks. Currently, the cost of appraisals is typically $350-$375 locally. This fee is added to your closing costs and is the responsibility of the employee. If the appraisal does not satisfy the asking price and the eligible employee would like to cancel the mortgage request, the employee will still be responsible for the appraisal fee.
Should I contact an attorney? The eligible employee is not required to have an attorney at the time of offer. We would recommend that, at the least, you retain an attorney (one that is not related to the employee) as soon as practical following the acceptance of the offer.
I have been approved for a construction/home improvement loan, when can I make a draw? Once you have been approved by the Treasurer and all appropriate steps have been met in the home loan process, the loan will then need to be closed with your attorney and after such time; your funds will become readily available so invoices can be submitted for a draw.
Do I have to get a home inspection? Washington and Lee University does not require a home inspection; however, for your own benefit you may elect to have one completed.
What if I want to payoff my loan? The employee can contact Lori Oliver, Program Manager, in the Treasurer's Office to receive the precise payoff figure.
What if I leave the University? If the eligible employee leaves the University, they must notify the Treasurer's Office to discuss the options of paying off their mortgage.
Verification of a Mortgage From time to time, employees ask if the University can verify their mortgage amount, payments and history to another financial institution. This request can be made to Lori Oliver, Program Manager, in the Treasurer's Office. The University will not release any information until the employee has authorized the University in writing to release said information to the designated institutions.
What is an amortization table? The amortization table shows the loan amount from the date of establishment, all payments made with allocated interest through the life of the loan.
Can I obtain a home improvement loan through the University if my current mortgage is with another financial institution? If your current mortgagee will subordinate your deed to Washington and Lee University and if all of the requests are met in the home improvement process, your request may be granted.