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Click on any question to see to the appropriate answer.
| Q: |
What is a Mortgage Loan?
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| A: |
A mortgage loan is money given to you by a financial institution to buy a house. It requires a contractual agreement that you’ll pay back the loan with interest in specified monthly payments over a stated period of time. You can choose your payment term-the longer the term, the lower the monthly payment, but you’ll pay more in total interest. |
| Q: |
Where do I begin?
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| A: |
Any one of our Personal Bankers will be happy to answer any of your questions, help you select the best financing for your needs, prepare estimates of your closing costs and down payment, calculate payment schedules, and help you determine what price of a home you can afford.
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| Q: |
How much home can I afford?
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| A: |
Generally, lenders want your monthly payment, including taxes and insurance, to be 25-30% of your gross monthly income. Your Personal Banker can help you determine what price of a home to shop for by reviewing your income, debts and credit. You can also apply for a pre-approval where the lender approves the loan before you find a new home. Pre-approval makes your offer more attractive to a seller. |
| Q: |
How do I apply for a mortgage loan?
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| A: |
When you locate a home, contact one of our Personal Bankers who will assist you in filling out a loan application. The following pieces of information are needed for your loan application.
- Photo ID and proof of Social Security number
- Residence addresses for past two years.
- Names and addresses of each employer for past two years
- W-2’s and last two pay stubs
- Names, addresses, account numbers, and balances for all checking and savings accounts and the last two bank statements
- Names, addresses, account numbers, balances and monthly payments on all current loans
- If self-employed, the last two years’ tax returns and year-to-date Profit & Loss Statement prepared by an accountant
- Loan information and addresses on real estate owned
- Estimated Value of Furniture and Personal Property
- Certificate of Eligibility or DD214’s (if applying for a V.A. loan)
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| Q: |
What happens after I apply for a mortgage loan?
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| A: |
After you have applied for a loan, the information you have supplied will be verified and a credit report on you will be completed. An appraisal will be performed on the home you are purchasing to determine its market value. When all the information is collected, it will be reviewed for loan approval. |
| Q: |
What should I know about closing costs? |
| A: |
Closing costs are up-front fees you pay the lender when taking out a mortgage loan. These may include points. Points are a one-time charge you pay the lender to buy a lower interest rate than the current one. Each point equals 1% of the amount you are borrowing (i.e., if you borrow $90,000, one point costs you $900. Be sure to ask how many points you’ll be charged because you must pay them at closing. |
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