- Partnership—Schedule K-1 (Form 1041), Partnership Income Tax Return (Form 1065)
- Sole Proprietorship—Schedule C of personal tax return
- C-Corp—Form 1120: Most recent 2 years with all schedules
- S-Corp—Form 1120S: Most recent 2 years with all schedules, Schedule K-1 (Form 1041)
How has the pandemic affected self-employed borrowers?
Due to the economic instability caused by the COVID-19 pandemic, we'll ask you to submit these additional documents to verify that your income is stable:
- Audited Year-to-Date P&L statement as of the most recent month preceding application, or
- Self-Prepared Year-to-Date P&L statement as of the most recent month preceding application AND 3 months of the most recent Business Bank Statements that coincide with the last 3 months on the P&L statement
- Verification of business within 10 days of closing
We'll also ask you to complete a self-employed borrower income assessment to answer questions about how the pandemic has affected your business, such as:
- Are temporary restrictions in place that impact the business?
- Are there any impacts due to business supply chain, production costs or customer demand?
- Have you incurred any new expenses or debts since the beginning of the pandemic?
- Have you received the Paycheck Protection Program (PPP) or other loans/grants as a result of COVID-19?
What do I do once my offer is accepted?
When your offer is accepted, you’ll have a signed purchase agreement. You’ll then need to upload it to HomeSquad under the appropriate task. After that, a home loan advisor will touch base with you to discuss the next steps.
I saw that the prime rate/another lender's rate just changed. Did my rate also change?
Every lender dictates their own rate policy as the market fluctuates. And while we always strive to be competitive, our rates remain independent from other lenders. You can always check our website for our current rates or call us at 1-888-842-6328 to inquire.
Please be advised that you don't have the option to lock your rate until you have submitted the purchase agreement. Additionally, depending on the market environment, the rate(s) could be different from when you initially applied. If you opted for the Special Freedom Lock, you’ll need to monitor the rates on our website and contact your home loan advisor to take advantage of the rate lock float down.
What if I decide to buy a different property type than the one I applied for?
Depending on the kind of property you’re looking to purchase, the requirements could be different. Please contact us at 1-888-842-6328 to discuss.
Closing on Your Mortgage
How are closing costs calculated?
Closing costs comprise various fees, which vary by lender, location and loan type. They typically amount to 2% to 4% of the loan amount. Common fees include appraisal, which are identified on your Loan Estimate form. Because these fees are estimates, certain costs may change between the original Loan Estimate and your closing date.
Can closing costs be rolled into the mortgage loan?
Typically, closing costs on purchase loans can’t be rolled into your mortgage. However, the funding fee for certain loans may be included, as long as the total mortgage amount doesn’t exceed the loan-to-value ratio.
If you’re refinancing a mortgage and have enough equity in your home, closing costs can be included in the loan amount. Check with your home loan advisor for more information.
How do I pay my closing costs?
To pay closing costs, you’ll need to provide the funds through a wire transfer or cashier’s check, or have the funds transferred directly from your Navy Federal account. For closing costs under $1,000, a personal check may be accepted. Be prepared to have closing costs available up to 2 days before your closing date.
What do I need to bring to closing?
Typically, the only thing you’ll need to bring is a photo ID, but you’ll want to confirm the details with your home loan advisor before you go to closing. By this point, your closing funds should already be transferred to the settlement agent.
What does a settlement agent do?
The settlement agent handles the transfer of funds and property ownership through an escrow or trust account.
Can I close my loan using Hybrid eClose and still meet the settlement agent in-person?
Yes. If you choose to Hybrid eClose, you can sign most of the documents electronically on closing day prior to the in-person meeting with the settlement agent. There, you’ll sign the documents that require notarization.
What if my co-borrower doesn’t have internet access. Can they still participate in the Hybrid eClosing?
They’ll need internet access to be able to participate in the Hybrid eClosing if they’re a borrower on the loan.
However, if they won't have internet access on closing day, then the closing should proceed with a traditional in-person signing for all documents.
What if, on closing day, I lose internet access while signing documents electronically?
If you've chosen a Hybrid eClosing and you lose internet access while signing electronically, then we can convert the closing package to completely paper, and you’ll be able to sign all documents during your signing appointment.
If you've chosen a RON eClosing and you lose internet access while signing electronically, then we can reschedule your RON appointment for later in the day when you recover your internet access.
But, if recovering your internet access isn’t possible, we can convert the closing package to completely paper, and you’ll be able to schedule an appointment to finish closing with your settlement agent.
How can I get copies of my Hybrid eClosing documents?
You can download your electronically signed closing documents prior to ending the Hybrid eClosing session. The settlement agent will also provide you with copies of the ink-signed docs after signing in person.
Do I need to create a new or separate account to participate in the Hybrid eClosing?
No, there’s no need to create a different account. You’ll still be able to use your existing HomeSquad account to review and execute the Hybrid eClosing.
Can I close my loan using RON eClose and still meet the settlement agent in person?
No, if you choose a RON eClosing, you’ll sign all the documents electronically on closing day with the virtual notary. However, you can certainly schedule a meeting with your settlement agent in person for a separate reason—for example, to pick up keys after you close!
What if my co-borrower doesn’t have internet access. Can they still participate in the RON eClosing?
They’ll need internet access to be able to participate in the RON eClosing if they’re a borrower on the loan.
However, if they won't have internet access on closing day, then they'd need to advise the loan officer or processor that the closing should process as a traditional in-person signing for all documents.
How can I get copies of my RON eClosing documents?
You can download your electronically signed closing documents from HomeSquad after your closing is completed.
Do I need to create a new or separate account to participate in the RON eClosing?
Yes! You’ll need to create an account with Notarize when you receive the scheduling confirmation email. You’ll sign in and meet with the virtual notary to execute the documents that require notarization during your appointed time.
But, you’ll still be able to use your existing HomeSquad account to review and execute the non-notarized documents for your RON eClosing.
Can I use my cell phone to eSign my closing documents?
Yes, but you may need to copy the link from the email you receive and paste the link into a web browser tab on your phone. Simply clicking on the link within the email may take you to our website, instead of HomeSquad, where your documents are located. The preferred digital method is through a laptop or desktop.
Do I need to use a specific web browser for eClosing on my loan?
No, you shouldn’t need to use a specific browser. If you're having issues with eClosing on Microsoft Edge, we recommend switching to Google Chrome.
I’m trying to login to my RON appointment but keep receiving a failed testing connection. Why am I not able to login?
Occasionally, if you're using a Virtual Private Network (VPN) or ad-blocking software, or have firewall protection, you may encounter difficulties with Notarize. Issues typically arise in the form of a failed connection test before reaching the session with the notary. If you're experiencing a failed connection test before reaching the notary session, please temporarily disable your VPN.
My spouse can login and eSign the closing documents, but I can’t. What should I do?
- Are you using the same email address?
If so, please provide a separate email address to your processor or loan officer. The closer will then resend the documents to you, and you'll receive an email with a new link for you to access.
- Are you using the same device as your spouse?
If so, please try accessing the link emailed to you from a separate device.
- Have you confirmed that the above 2 issues don't apply to you?
If so, please reach out to your processor or loan officer if you're completing a purchase or refinance. If you're completing an equity loan, please reach out to your closer. They will help troubleshoot and confirm if there is a technical issue to be resolved.
Managing Your Mortgage
Can I pay extra toward the principal on my loan?
Yes, you can pay extra toward the principal on your loan as long as your mortgage or fixed-equity loan payments are up-to-date. When making your payment online, select the “Additional Principal and Escrow” option and enter the amount you’d like to pay.
You can also pay extra toward the principal of your Home Equity Line of Credit. Your additional principal payment must be submitted after the current month’s payment is satisfied and before the next month’s bill is generated, which usually occurs on the 5 th of each month. If the 5 th falls on a weekend or holiday, your bill might generate earlier.
I accidentally made 2 payments from my Navy Federal account. What should I do?
To get a refund for your duplicate payment, call us at 1-888-842-6328 or send us an eMessage through online banking.
I accidentally made 2 payments from my external bank account. What should I do?
To get a refund for your duplicate payment, you can send us an eMessage through online banking, fax us at 703-206-3650 or send us a written request via mail at P.O. Box 3300, Merrifield, VA 22119. Your request will be processed after 7 business days to ensure the funds have cleared your external account.
If you’re looking to get your refund faster, you may include proof of the payments with your written request. The proof of payment may be a screenshot of your account activity or your most recent statement. It must show that both payments have cleared your external account and are no longer pending, along with a running account balance.
I made a payment, but my balance only decreased a fraction of the amount. Why is that?
Your monthly payment is divided and applied to both your principal balance and your interest. As your loan matures, the amount of each payment applied toward the principal balance will increase, and the amount of each payment applied to interest will decrease. For payment breakdowns specific to your loan, you can view your amortization schedule through Navy Federal online banking. The Amortization Schedule option is located in the My Loan drop-down menu after you click on your mortgage account.
How do I pay off my mortgage?
To pay off your mortgage, simply request a payoff quote. A payoff quote will capture the full balance due to pay off your loan. It’s important to get a payoff quote, as the principal balance of your account is different than your full payoff amount due to interest calculations, any outstanding fees and the recording fee collected to record the release of the lien.
To receive a payoff quote for your loan, you may sign in to online banking and click on your mortgage account. Then, select Payoff Statement under the Statements and Documents tab and fill in the required information. After obtaining your payoff quote, you can submit the funds required to pay your loan in full. Keep in mind that a payoff may take longer to post than a regular payment.
Refinancing Your Mortgage
What does it mean to refinance a mortgage?
Refinancing means replacing your existing mortgage with a new mortgage that could have better terms or features.
Can I refinance my mortgage if my original loan isn’t with Navy Federal?
Yes. You can refinance your exernal loan with Navy Federal whether your original loan is with us or another financial institution.
How long does it take to refinance a mortgage?
It typically takes 30 days to refinance your home from application to closing. Currently, refinance loans are averaging 30-45 days. This timeframe varies depending on how quickly we obtain all required documentation to approve your loan request.
Do I need any cash on hand to refinance my mortgage?
Refinancing your home loan typically doesn't require you to pay for closing costs out of pocket because the closing costs can be included in the total loan amount.
Servicemembers Civil Relief Act (SCRA)
What is the Servicemembers Civil Relief Act (SCRA)?
The Servicemembers Civil Relief Act (SCRA) provides legal and financial protection to eligible Active Duty servicemembers. It includes benefits such as a 6% interest rate cap. However, effective April 1, 2022, Navy Federal is offering a lower maximum interest rate of 4% to eligible member accounts.
Is my mortgage loan eligible for these benefits?
Your Navy Federal loan may be eligible for SCRA benefits if it was opened before you started Active Duty. Visit our SCRA page for more information on eligibility and to request benefits.
Disclosures
The program is only available for individual home purchases/sales in the contiguous US, Alaska, and Hawaii, excluding Iowa and all employer-sponsored relocations. You are not required to receive financing through Navy Federal Credit Union in order to receive the benefits of this program. The cash back is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent, and is offered in most states, with the exception of Iowa, Alaska, and Oklahoma, and is not available in certain transactions with restricted agent commissions (including many new constructions, For Sale by Owner, or For Sale by iBuyer transactions). Your assigned agent can help you identify any transactions where the cash back would not be available. The amount of your cash back depends on the value of the property you are buying or selling. Obtaining the full $9,000 cash back requires transacting in a property valued at $3 million or greater. To calculate your potential cash-back amount, please visit the RealtyPlus website: https://navyfederalrealtyplus.com/. The cash-back offer is limited to one cash back per property with no limit on the number of times you may use the program. In some states, a gift card or commission credit at closing may be provided in lieu of the cash back. In Kansas and Tennessee, a Mastercard® MAX gift card will be issued with preloaded points that are ready for spending at specified retail establishments after closing. State regulations in Kansas limit the dollar amounts and the type of incentive. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing in lieu of cash back. Please check with the program coordinator for details. All real estate commissions are negotiable. Contact RealtyPlus for terms and conditions. Seller listing fees apply. This program is offered, in part, by Anywhere Leads Inc., which may receive a co-operative brokerage fee as a result of a referral to any affiliated real estate companies, including Better Homes and Gardens® Real Estate, Coldwell Banker®, Century 21®, ERA® Real Estate, and Corcoran. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. Anywhere Leads Inc., 175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191.
Product features subject to approval. Occupancy restriction applies. Subject to funding fee, which may be financed up to the maximum allowed loan amount. Conventional loans: 100% financing available for purchase loans only. VA loans: 100% financing subject to all VA program requirements. Navy Federal has no affiliation with U.S. Department of Veterans Affairs or any other government agency.
Rates displayed are "as low as" and effective 09/16/2024 for purchase, refinance loans, and VA IRRRL, and require a 1.00% loan origination fee, which may be waived for a 0.25% increase in the interest rate. Displayed rates may include discount points. Rates are subject to change. All VA rules, guidelines, and additional program requirements will apply. All loans subject to approval. Navy Federal has no affiliation with U.S. Department of Veterans Affairs or any other government agency.
Special Freedom Lock is available for new applications on purchase and refinance loans at no additional fee for a 60-day lock. You must request the Special Freedom Lock option during the initial lock request. You may request a lower rate no more than two (2) times, with a maximum cumulative interest rate reduction of 0.50%. You must monitor rates to decide when to exercise the option to lower the rate. All requests for a lower rate must occur at least seven (7) calendar days before closing.
Product features subject to approval. Available for purchase loans only. Occupancy restriction applies. Subject to funding fee, which may be financed up to the maximum allowed loan amount.
Guarantee to receive rate match only applicable if all conditions are met. Available for purchase and refinance first mortgages. Certain product exclusions may apply. Loans utilizing the Lock and Shop program are not eligible. You must lock your rate with Navy Federal prior to submitting rate match request to qualify. A Loan Estimate and the rate lock disclosure from the competing lender must be received within 3 calendar days of locking with Navy Federal. The rate must be locked with the competing lender. The date of the Loan Estimate and the lock effective date with the competing lender must be within 3 calendar days of the rate lock with Navy Federal. Please note that no other documentation may be used to show competitors' terms. The terms of the competing loan must be identical to Navy Federal's loan; for example, a 30-year, fixed-rate product with mortgage insurance is not identical to a Navy Federal 30-year, fixed-rate product that does not have mortgage insurance. If the loan does not close within the commitment period, the rate match may be voided. NOTE: The initial Loan Estimate from a wholesale lender/broker is not an acceptable document for a rate match submission unless the Lender Information section on the Loan Estimate is completed. To receive $1,000, you must provide a signed, executed copy of the final Closing Disclosure and a copy of the final mortgage note within 30 calendar days of your loan closing with the original competing lender. Not valid if original loan terms or conditions change prior to closing. Once approved, $1,000 will be automatically deposited into your Navy Federal account within 30 calendar days of receiving the necessary documentation. Recipient is solely responsible for any personal tax liability arising out of this incentive.
All income provided on application is considered stated. Once under contract for a property, then will income, assets, and employment be verified. Once reviewed and verified it is subject to change and application will be updated accordingly. Please note any changes to the application in relation to income/assets could affect final approval.
