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Your Path to Homeownership Starts Here

Buying a home is one of the biggest purchases you’ll ever make. LCEF is here to walk you through the steps.
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Why LCEF?

Buying a home is a significant milestone, but it doesn’t have to feel overwhelming.

At LCEF, we understand the unique challenges faced by LCMS Rostered Church Workers
(RCWs) because we’ve been serving the church and its workers since 1978. We recognize the
dedication you bring to your ministry, and we believe the homebuying process should be a
source of support, not stress.

Our experienced team is here to guide you through every step of the way. Whether you’re
purchasing a new home or refinancing, LCEF offers competitive mortgage options specifically
designed for ordained and commissioned LCMS RCWs.

Let us manage the details of your mortgage, so you can stay focused on what truly matters—
serving His Kingdom.

Home Buying Timeline
Mortgage Checklist

1. Select a Real Estate Agent (1–2 weeks)

It’s important to find the right real estate agent to work with you and your family. Do your research and ask potential agents questions (have them describe their process, ask what you can expect when working with them, etc.). Connect with people at your congregation and/or school to get recommendations and reviews of local agents.

2. Get Pre-Approved (1 week)

Connect with LCEF’s mortgage team to learn what you need to get pre-approved. Some of the documents you will need include: call papers, pay stubs, tax returns and bank statements. The LCEF mortgage team will walk you through the process and provide a list of the documentation you will need. Pre-approval can take 1-5 business days.

3. Start Looking for Homes (Amount of time varies)

This is the fun part! Think about the wants and needs you have for your new home (a certain number of bedrooms, location, etc.). Discuss your wish list with your real estate agent and ask them to start sending you homes that fit your criteria. You could also search for available homes on real estate websites. Be ready to adjust your list once you start seeing what types of homes are available in your price range. Note that this step can happen at the same time as steps 1 and 2.

4. Go to Home Viewings (1 week–4+ months)

The timing for this process varies based on the location. In some markets, you might need to make an offer the same day you view the home, and in other markets, you might have more time. According to research from real estate experts, the average time spent home shopping is around four and a half months.

5. Make an Offer On a Home (3–5 days)

Your agent will help you put in an offer when you find a home that might be “the one.” Then, your agent will connect with the seller’s agent and negotiate, if necessary. The seller could accept, reject or counteroffer, which would start another round of negotiations.
From your first offer to an accepted offer, be sure to stay within your budget.

6. Get Your Loan Approved: The Underwriting Process (1–2 months)

Once the negotiations are finalized, it’s time for you to complete the mortgage loan process with LCEF. We will begin the Final Underwriting Process working to Approve the loan. Steps 7 and 8 are completed during step 6.

7. Appraisal (1–2 weeks)

LCEF will hire a professional to perform an appraisal to determine the home’s value. You won’t need to do anything during this process other than wait to get the results. Depending on the results of the appraisal, there might be an additional round of negotiations with the seller.

8. Get a Home Inspection (1–3 weeks)

As the buyer, you will hire a home inspector to go through the home and determine anything that may not work properly or need repair. Typically, you have 10 days after the offer is accepted to complete the inspection.

9. Close On Your New Home (1 day)

Bring your down payment and closing costs to an agreed upon location (typically a title company), and you will sign a lot of paperwork! Once this meeting has been completed, you will receive the keys, and you will be a homeowner!

1. Review Your Finances

Before applying for a residential loan, consider checking your credit report and correcting any errors. Debt-to-income ratios should be around 45% or less for the best loan terms.

2. Create a Budget

A good rule of thumb is to spend 28% or less of your monthly income on your housing payment (including your principal, interest, taxes, mortgage insurance, homeowner’s insurance and any possible HOA fees).

Use our mortgage calculators to help you determine your budget. You might be approved for a higher amount based on your financial situation, but you will need to determine what you are comfortable paying each month.

3. Get Your Documents Ready for Pre-Approval

• W-2 forms from the last two years.
• Your most recent pay stubs.
• Copies of your tax returns for the last two years.
• Banking statement for the last 2-3 months.
• Method of identification, such as your state-issued driver’s license.

LCEF will review your documents and credit report to determine your eligibility for a home loan and the loan amount. If approved, you’ll receive a pre-approval letter valid for 60-90 days, which you can share with your real estate agent.

4. Find a Property and Make an Offer

Your real estate agent will guide you through this process. Once you find the right home, your agent will draft your offer which will include the price, a suggested time frame (usually 30 to 90 days) and conditions of the contract. For example, it might be contingent on financing, inspections and/or selling your current home.

5. Apply for a Mortgage

LCEF is pleased to offer home purchase and refinance loans to ordained and commissioned LCMS RCWs on active or emeritus status. To get started, apply now.

6. Final Preparations

Once you have a signed purchase agreement, you’ll work with the LCEF team to finalize your mortgage. We’ll review your documents and may request additional information. Our team will verify that you meet all requirements, ensure your income is stable and confirm that you have the funds for the down payment and closing costs. LCEF will also order an appraisal to determine the home’s value, conduct a title search to confirm the property’s ownership and ensure there are no outstanding claims or liens.

7. Close on the Property

Once underwriting has been completed, LCEF will send you a closing disclosure document which summarizes the term and what you will pay at closing. Carefully review this document and discuss any concerns with your loan officer. We will work together to schedule a closing date and time to sign all necessary paperwork.

8. Settling into Your New Home

After closing, you’ll move into your new home and begin making mortgage payments. It’s important to pay on time, as late payments can negatively impact your credit score.

How Much Can You Afford?

Knowledge is power! Get started with our quick-and-easy mortgage calculators. There are several factors that play into calculating how much mortgage you can afford, including your income, debt-to-income (DTI) ratio, credit score and employment history. All of these aspects, combined with the interest rate, should be considered when determining how much mortgage you can afford.

How Much Can You Afford Calculator
Monthly Mortgage Payment Calculator
Gross Monthly Income

Total monthly income:

New Home Info
Monthly Debts

Total monthly debts and housing expenses (including insurance and real estate payments):

Mortgage Calculator

State Availability

Hover over the state in which you are looking to purchase or refinance for details about the RCW mortgage program.

Looking for a Home Equity Loan? Click here.

* Texas– Specific state regulations apply. All cash out refinances and straight refinances in excess of 80% loan-to-value are not available. Call 800-843-5233 for details.

The RCW Mortgage Loan Program offers adjustable and fixed rate options and is available for the purchase or refinance of a Primary Residence home. Applicants must be active or emeritus status and meet specific underwriting guidelines.

From
the RCW Community

Chris Dehning

Principal at Trinity Lutheran School in Winfield, Kan. and first-time homebuyer.

“Lutheran Church Extension Fund (LCEF) is doing a lot of great work.”

Rev. Matt Wietfield

Concordia Theological Seminary, Ft. Wayne, Ind.

“We never even looked at anyone else for a loan. LCEF came through with a great interest rate and took care of us completely. It was no surprise; I knew we’d be taken care of.”

FAQs About the Mortgage Process

Are you feeling overwhelmed? We know it can be intimidating, especially for first-time homebuyers. LCEF is here to help you. We’ve hosted two informational webinars about our RCW mortgage program that include helpful tips from our team of experts and a realtor.
How do I qualify for a home loan from LCEF?

What should I do before buying a home?

How long does the process take?

What benefits do Rostered Church Workers enjoy with LCEF’s home loan program?

 

About Residential Loans with LCEF

At LCEF, we understand the unique calling and needs of LCMS Rostered Church Workers (RCWs). Whether you are purchasing your first home or refinancing your current mortgage, LCEF is committed to providing affordable, accessible and flexible loan options designed specifically at any stage of their homeownership journey.

Our mortgage program includes competitive interest rates, low down payment options and no private mortgage insurance (PMI) required. With the support of our knowledgeable loan officers and easy online access, we aim to make the home-buying process as seamless as possible.

For more about LCEF’s residential loans for RCWs throughout the Synod, check the video on this page for answers to commonly asked questions.

Prior to applying for a residential loan from LCEF, please check the map below to verify that you reside in a state where this loan is available.

 

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Download Our Free Tips Guide

Looking for more tips and home-buying help, information about our loans and stories about church workers and their journeys to becoming homeowners? Receive our First-Time Home Buyers document and learn even more about the homebuyer experience with LCEF.

Connect With Our Team

Our experienced team of loan officers is ready to answer your questions and help you navigate the process.

While together LCEF and LFCU support the mission and ministry of The Lutheran Church—Missouri Synod, they are independent organizations and not affiliated with each other. Lutheran Federal Credit Union: 10733 Sunset Office Drive, Suite 406, St. Louis, MO 63127-1020. Phone number: 314-394-2790. Website: Lutheranfcu.org. (NMLS# 1301052).