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I'm concerned about submitting personal information online. How do I know my data is safe? Answer |
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Is there a fee or obligation for completing the application online? Answer |
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How do I know how much house I can afford? Answer |
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How do I know which type of mortgage is best for me? Answer |
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What documents will I need to provide during the loan process? Answer |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
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What does my mortgage payment include? Answer |
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How much cash will I need to purchase a home? Answer |
| 9. |
How is an index and margin used in an ARM? Answer |
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I'm concerned about submitting personal information online. How do I know my data is safe? |
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It's a great question! Our highest priority is ensuring that all personal financial data is kept safe and protected. That's why we use state-of-the-art encryption and firewall security as part of our security measures. Your loan application information is protected from unauthorized access and will be viewed only by our professional loan officers when the application is submitted. |
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Is there a fee or obligation for completing the application online? |
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NO. There is no fee or obligation to complete and submit the online application. A loan officer will review your application and contact you within 2 business days. At that point, your loan officer will discuss with you the loan process and any fees that will apply should you choose to move forward with the loan. |
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How do I know how much house I can afford? |
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Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford. |
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How do I know which type of mortgage is best for me? |
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There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. First State Bank of St.Charles can help you evaluate your choices and help you make the most appropriate decision. |
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What documents will I need to provide during the loan process? |
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You may need to provide some or all of the following documents during the loan application process:
Two most recent pay stubs or proof of income (ex: Social Security award letter, pension statement, etc.)
W-2 forms for the previous two years
Personal income tax returns for the previous two years
Business income tax returns for the previous two years (if self-employed)
Two most recent bank statements (all accounts)
Most recent statements on investment & retirement accounts
Proof of homeowners insurance
Name, loan number and contact phone number of current mortgage company (if applicable)
Trust agreement (if applicable)
Divorce decree (if applicable)
Sales contract (if loan is for purchase) |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? |
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With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
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What does my mortgage payment include? |
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For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowedInterest: Payment to the lender for the amount borrowedTaxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
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How much cash will I need to purchase a home? |
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The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:Earnest Money: The deposit that is supplied when you make an offer on the houseDown Payment: A percentage of the cost of the home that is due at settlementClosing Costs: Costs associated with processing paperwork to purchase or refinance a house |
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How is an index and margin used in an ARM? |
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An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR). |
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