FAQs Mortgages

FAQs for Mortgages

Q: What steps are involved in the mortgage application process?

A:  First, you'll complete our loan application. We encourage you to use our online application for more convenience.

When completing the application, you will need to provide information about the home and your finances. It typically takes less than 20 minutes to complete. If you are unable to fill out the application online, please contact our Mortgage Department to have one emailed, or you may pick one up at any of our branch locations.

After completing your application, one of our Loan Originators will contact you and answer any questions you may have. Your Loan Originator is a mortgage expert and will provide help and guidance along the way. They will ask you for any information required to make a decision about your loan. Typically, one of our Loan Originators will contact you within 24-48 hours after completing the application.

Q: What kind of credit score is needed to apply for a home loan?

A:  Your credit score is only one of the many factors that go into approving your loan. A credit score is simply a number that reflects a multitude of credit-related factors such as loan balances, number of open accounts, past and current repayment history, public records (judgements, bankruptcies, and liens), etc. We have many different programs for various credit scores.

Q: Can I apply for a loan before I find a property to purchase?

A:  Yes. After submitting your mortgage application, one of our Loan Originators will review your application and credit report. This review will confirm your target purchase price range and eligibility, giving you the knowledge to shop more confidently for that perfect home.

Q: How much do I need for the down payment?

A:  This will depend on what type of loan program you can qualify for. We have programs from 0 down up to 20% down, based on program guidelines and borrower qualifications. Plan a budget strategy and set a goal to help you reach that mark.

Q: Are borrowed funds acceptable as a down payment source?

A:  Yes, if that loan is secured by an asset that you own. This source of down payment funds should be carefully considered. Not only will it be an additional debt to repay, but it will also lessen the amount of income available to service your house payment. If you choose to borrow funds for a down payment, you must fully disclose this new loan on your application. You can also use gift funds from family members as a down payment.

Q: What are closing fees?

A:  A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. Many of these fees are typical and constant for all borrowers, while some are directly related to the borrower's credit profile and the loan type requested.

Q: If the house that I'm buying appraises for more, can I use the difference (equity) towards my payment?

A:  Unfortunately, on any purchase transaction, we are limited to using the lower of the purchase price or appraised value. Later, should you refinance, we can then base your home's equity solely on the appraised value.

Q: Will a past Bankruptcy or foreclosure affect my ability to obtain a new mortgage?

A:  If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. In general, most companies that we use require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards.

Q: What is an appraisal and who completes it?

A:  An appraisal report is a written description and estimate of the value of the property. The estimated value is determined by two methods: sales approach and cost approach, with the sales approach usually given the most weight. The sales approach compares the subject property (your current/prospective home) with three other previous homes similar to yours that have sold within the last 6-12 months.

Q: Can my child support or alimony be used as a source of income?

A:  Yes, as long as you have a court order showing that you receive it as income and that it will be ongoing for a certain period.