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Mortgage Loans

Are you trying to find the mortgage that best suits your needs?  Having trouble figuring out what you need to bring or what questions you need to ask?  Let us help you with that by calling Cindy Milligan, NMLS-520221, at 731-723-1225 today!

What is a Mortgage?

A mortgage is a loan structured to allow you, the borrower, to purchase a home, refinance your current home or even build a brand new home. A mortgage uses your home as collateral and establishes your repayment period. Your mortgage is considered to be one of the most important investments you will make.

Your monthly payment will consist of the following:

  • Principal: The portion of the house that is financed by the bank.
  • Interest: The amount that the bank will receive for lending you the money.
  • Taxes: The amount that you will pay based on the local government assessed value of your home.
  • Insurance: Private insurance to protect your home investment from damages
  • Mortgage Insurance: This insurance is designed to protect the lender against borrower(s) who do not make their monthly payment. When this happens, the lender is forced to foreclose on the loan. This insurance is required if the borrower’s down payment is less than 20% of the purchase price of the home.

 

Why use a community bank for your Mortgage needs?

Community banks have helped nearly 70 million families become homeowners – helping them achieve the American Dream.  What's nice about working with your community bank is that we can get rid of the fear factor that first time homebuyers might encounter. We can also direct you as to the mortgage loan which fits your circumstance. We will be with you throughout the entire process. 

Which Mortgage product is right for me?

To determine the best mortgage loan to meet your specific need, make an appointment with Cindy Milligan, our Mortgage Loan Officer, NMLS 520221, who can explain your options.

Conventional Mortgage Loan

For most homebuyers a conventional mortgage can be the answer. This type of mortgage offers long term, fixed rate financing. This is a mortgage which is not guaranteed by any federally insured program, and, depending on the amount of your down payment, you may be required to obtain Private Mortgage Insurance (PMI) to provide a guarantee for the loan.

Federal Housing Administration Loan (FHA)

The Federal Housing Administration (FHA) loan is a government insured product. FHA loans are available with as little as a 3.5 percent down payment. This loan does require the buyer to obtain Mortgage Insurance Premium (MIP) through the FHA regardless of the down payment you intend to make. However, this insurance can be financed into the loan amount, and the buyer pays a month premium.

USDA – Rural Development

100% Loan-to-Value available, no down payment required if buyer is not financing the guarantee fee.  The guarantee fee is 2% for purchase and refinance transactions, which can be financed in the loan amount.  There is an annual fee of .40%.   This loan option is available for 30 year mortgages only.   All loans must meet the high cost test if applicable in your area and only FHA allowable fees can be charged to the purchaser.  

Jumbo Mortgages

This mortgage is geared for loan amounts that are over the Fannie Mae (Government-insured) limit of $417,000.00. A jumbo mortgage will have tighter guidelines and carry a higher interest rate than mortgages below that amount.  

 

Where do I begin?

By calling Cindy today, you can get Pre-Qualified or Pre-Approved before you shop for a home.   What is the difference?

Pre-Qualification: A process in which you and the Mortgage Loan Officer discuss your financial information such as income, monthly debts, assets available, etc., to determine your borrowing power.

Pre-Approval: This process follows the same steps as Pre-Qualification, however the Mortgage Loan Officer takes it a step further and reviews your financial information documentation and requests a credit report from the reporting agency. If all of the lending parameters are met, the Mortgage Loan Officer is able to issue a Pre-Approval letter which the buyer can present to a Seller, Realtor, etc. It may be important to know that you can be approved prior to shopping for a home.

 

Tips on Applying for a Mortgage Loan

Providing as much information to your Mortgage Loan Officer at the time of application will help the process of your mortgage loan request progress very smoothly. If possible, gather this information before visiting your Mortgage Loan Office. The documents that are needed at the time of application are below:

  • Most recent pay check stubs—last 30 day period
  • Names & addresses of each employer—past two years and W2s or tax returns are required
  • Gross monthly salary
  • Bank statements for all checking, savings accounts—last 2 months
  • Names, addresses, account numbers, monthly payments on all open loans—real estate included
  • Address of other real estate owned
  • Landlord addresses—past two years, if applicable.