Lending

To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

The appraiser will create a written report for us and you'll be given a copy at least 3 days prior to your loan closing.

Usually the appraiser will inspect both the interior and exterior of the home.

After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables" and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.

As an additional check on the value of the property, the appraiser also estimates the replacement cost for the property. Replacement cost is determined by valuing an empty lot and estimating the cost to build a house of similar size and construction. Finally, the appraiser reduces this cost by an age factor to compensate for depreciation and deterioration.

Using these two different methods, an appraiser will frequently come up with slightly different values for the property. The appraiser uses judgment and experience to reconcile these differences and then assigns a final appraised value. The comparable sales approach is the most important valuation method in the appraisal because a property is worth only what a buyer is willing to pay and a seller is willing to accept.

It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction there is. It represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value be very different.

Licensed appraisers who are familiar with home values in your area perform appraisals. Generally, it takes 14-21 days before the written report is sent to us after we have ordered the appraisal. We follow up with the appraiser to insure that it is completed as soon as possible. If you are refinancing, and an interior inspection of the home is necessary, the appraiser should contact you to schedule a viewing appointment. If you don't hear from the appraiser within seven days of the order date, please inform your Loan Officer. If you are purchasing a new home, the appraiser will contact the real estate agent, if you are using one, or the seller to schedule an appointment to view the home.

In addition to verifying that your home's value supports your loan request, we'll also verify that your home is as marketable as others in the area. We'll want to be confident that if you decide to sell your home, it will be as easy to market as other homes in the area.

We certainly don't expect that you'll default under the terms of your loan and that a forced sale will be necessary, but as the lender, we'll need to make sure that if a sale is necessary, it won't be difficult to find another buyer.

We'll review the features of your home and compare them to the features of other homes in the neighborhood. For example, if your home is on a 20-acre lot, or has a large accessory building, we'll want to make sure that there are other homes in the area on similar size lots or with similar outbuildings. It is hard to place a value on such unique features if we can't see what other buyers are willing to pay for them. In some areas, additional acreage or outbuildings could actually be a detriment to a future sale. Finding comparable properties can be more challenging in rural areas where it is more difficult to find homes that have similar features.

We'll also make sure that the value of your home is in the same range as other homes in the area. If the value of your home is substantially more than other homes in the neighborhood, it could affect the market acceptance of the home if you decide to sell.

We'll also review the market statistics about your neighborhood. We'll look at the time on the market for homes that have sold recently and verify that values are steady or increasing.

As soon as we receive your appraisal, we'll update your loan with the estimated value of the home. As a standard practice we will provide a copy of your appraisal no later than 3 days prior to closing.

Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm that you've found the perfect home.

Generally, the bank will require and order an appraisal. The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage that could affect the salability of the property will also be reported.

However, appraisers are not construction experts and won't find or report items that are not obvious. They won't turn on every light switch, run every faucet or inspect the attic or mechanicals. That's where the home inspector comes in. They generally perform a detailed inspection and can educate you about possible concerns or defects with the home.

Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.

It is important to know that a bank will generally require and order an appraisal, but may not require a home inspection. It is recommended that you get a home inspection even if the bank does not require one.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. The law can't stop floods. Floods happen anytime, anywhere. But the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure that you will be protected from financial losses caused by flooding.

We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding.

An adjustable rate mortgage, or an "ARM" as they are commonly called, is a loan in which the interest rate and monthly payment are fixed for an initial time period such as one year, three years, five years, or seven years. After the initial fixed period, the interest rate can change every year. For Example, with a five-year ARM, the interest rate will not change for the first five years (the initial adjustment period) but can change every year after the first five years.

For many people in a variety of situations, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for three to five years. An ARM is also a alternative for non-conforming property types that do not qualify for a fixed rate loan.

Here's some detailed information explaining how ARM's work.

Index

Our ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current value of most indices is published weekly in the Wall Street Journal. If the index rate moves up so does your mortgage interest rate, and you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down your monthly payment may decrease.

Margin

To determine the interest rate on an ARM, we'll add a pre-disclosed amount to the index called the "margin." If you're still shopping, comparing one lender's margin to another's can be more important than comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future.

Interest-Rate Caps

An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:

1. Periodic or adjustment caps, which limit the interest rate increase or decrease from one adjustment period to the next.

2. Overall or lifetime caps, which limit the interest rate increase over the life of the loan.

As you can imagine, interest rate caps are very important since no one knows what can happen in the future. All of the ARMs we offer have both adjustment and lifetime caps. Please see each product description for full details.

Contact a Loan Officer

Selecting a mortgage may be the most important financial decision you will make and you are entitled to all the information you need to make the right decision. Don't hesitate to contact a Loan Officer if you have questions about the features of our adjustable rate mortgages.

A 15-year fixed rate mortgage gives you the ability to own your home free and clear in 15 years. And, while the monthly payments are somewhat higher than a 30-year loan, the interest rate on the 15-year mortgage is usually a little lower, and more important - you'll pay less than half the total interest cost of the traditional 30-year mortgage.

However, if you can't afford the higher monthly payment of a 15-year mortgage don't feel alone. Many borrowers find the higher payment out of reach and choose a 30-year mortgage. It still makes sense to use a 30-year mortgage for most people.

Who Should Consider a 15-Year Mortgage?

The 15-year fixed rate mortgage is most popular among younger homebuyers with sufficient income to meet the higher monthly payments to pay off the house before their children start college. They own more of their home faster with this kind of mortgage, and can then begin to consider the cost of higher education for their children without having a mortgage payment to make as well. Other homebuyers, who are more established in their careers, have higher incomes and whose desire is to own their homes before they retire, may also prefer this mortgage.

Advantages and Disadvantages of a 15-Year Mortgage

The 15-year fixed rate mortgage offers two big advantages for most borrowers:

• You own your home in half the time it would take with a traditional 30-year mortgage.
• You save more than half the amount of interest of a 30-year mortgage. Lenders usually offer this mortgage at a slightly lower interest rate than with 30-year loans - typically up to .5% lower. It is this lower interest rate added to the shorter loan life that creates real savings for 15-year fixed rate borrowers.

The possible disadvantages associated with a 15-year fixed rate mortgage are:

• The monthly payments for this type of loan are generally higher per month than the payment for a 30-year.
• Because you'll pay less total interest on the 15-year fixed rate mortgage, you won't have the maximum mortgage interest tax deduction possible.

Compare Them Yourself

Use the "How much can I save with a 15 year mortgage?" calculator in our Resource Center to help decide which loan term is best for you.

The maximum percentage of your home's value depends on the purpose of your loan, how you use the property, and the loan type you choose, so the best way to determine what loan amount we can offer is to complete our online application!

We do offer financing for manufactured homes. However, this product is not available online at this time. please contact a Loan Officer for more information on these products.

In most cases we are able to offer financing for homes on large tracts. What's most important is to determine if the size of your property is common for the area. The appraiser must be able to provide detailed information about the recent sale of similar homes on similar lots that have occurred recently. If that's not possible, we may not be able to provide the financing that you are looking for.

It's also important that your property be residential in nature. If the property is a working farm or is used for any commercial purposes, we may have issues qualifying you for a fixed rate loan. If this is the case, we have other loan options. Contact a Loan Officer if you have concerns about the acceptability of your property.

The VA charges a Funding Fee to most veterans who obtain a VA mortgage loan to help sustain the VA home loan program. The VA Funding Fee is between 1.25% and 3.3% of the loan amount and varies depending on your military classification, whether or not you have obtained a VA loan before, and the amount of down payment you are making. Veterans receiving VA disability are exempt from paying this fee.

In most cases, the VA Funding Fee is financed rather than being paid in cash at closing.

The VA charges a Funding Fee to most veterans who obtain VA mortgage loans to help sustain the program. Although the full amount can usually be financed as part of the loan amount or paid in cash, most people finance it as part of their mortgage. We’ve automatically assumed you will finance the maximum VA Funding Fee amount and have included it as part of your Total Loan Amount. If you choose to pay the VA Funding Fee instead of financing it, your loan amount will decrease and the amount of cash required at closing will increase.

FHA loans are mortgages issued by government-approved lenders and insured and administered by the U.S. Department of Housing and Urban Development HUD. FHA mortgage loans generally require less of a down payment and have less stringent qualification requirements than conventional loans. Any borrower of legal age is eligible to apply for an FHA mortgage loan regardless of income level, including non-U.S. citizens. However, FHA does limit the maximum amount an individual can borrow under this program based on the location of the property.

If you are looking for a loan that requires less of a down payment, you should compare both Conventional and FHA loan types to determine which financing type is best for you.

FHA charges an Upfront Mortgage Insurance Premium (Upfront MIP) for all FHA purchase transactions to financially support the FHA program. This fee is typically 1.5% of the principal loan amount. .Although the Upfront MIP can be paid in cash at closing, it is generally financed so that the cash required at closing is as reasonable as possible.

In addition to the Upfront MIP, Monthly Mortgage Insurance may also be required and included in the total payment. The Monthly Mortgage Insurance premium can range from .25% to .5% of the loan amount depending on the down payment, loan term and property type.

Insurance and Requirements
Both VA and FHA loans are insured and administered by the federal government. Because the government insures a portion or the total dollar amount of these mortgage loans, FHA and VA loans generally require lower down payments and have lower qualification requirements than Conventional loans.

There are some Conventional loans that allow for low down payments as well. It is always a good idea to compare all eligible loan programs before determining which is best for your situation.

Eligibility
Unlike Conventional and FHA loans where anyone is eligible, only qualified veterans can obtain VA loans.

Loan Amounts
Unlike Conventional loans, FHA has established maximum loan amounts that limit the amount an individual can borrow based on the area that the home is located in. The maximum loan amount for VA loans in all areas is $359,650.

USDA stands for United States Department of Agriculture. Loans backed by USDA are also called Rural Housing loans. A USDA mortgage might be right for you if you want to purchase a home in an eligible rural area with no down payment.

No, the loan program allows for no down payment. The guarantee fee can also be financed.

There is no maximum loan amount for a USDA/Rural Housing mortgage. However, the loan amount is limited by the appraised value and your ability to repay based on your household income.

The USDA Rural Development Single Family Housing Program serves as a safety net for mortgage lenders. The USDA provides the full faith and assurance of the U.S. government that any financial loss resulting from servicing the loan will be reimbursed. This guarantee provides lenders an expanded level of protection against losses.

USDA Loans are a "budget neutral" loan program offered through the U.S. Department of Agriculture. This means that the loan doesn't rely on U.S. tax payers for funding or assistance. Instead the program is self-funded through the "Guarantee Fee".

The Annual Fee is paid monthly by the borrower over the life of the loan. This fee is intended to support the Rural Housing program and to maintain it as a “budget neutral” loan program.

A home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. Because your home is likely to be your largest asset, you should consider a home equity line of credit for the purchase of major items such as education, home improvements, or medical bills and not for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit, The credit amount is your credit limit-meaning the maximum amount that can be borrowed while you have the plan. Since you can get approved for an amount of credit now and not access the funds until you need them, a home equity line of credit is a good choice if you simply want the ability to access cash as you need it. A HELOC is revolving, meaning you borrow the funds again once it has been repaid.

With our home equity line, you'll have the ability to access funds, up to the amount of your credit limit.

The monthly payment for a home equity loan is typically based on your daily balance and the daily interest rate.

A home equity loan is generally a second mortgage against your home, meaning it is a loan that you take out using your home as collateral without paying off your first mortgage. A refinance typically means that you'll be paying off your existing mortgage and replacing it with a new mortgage.

Determining whether it's best to refinance or to obtain a home equity loan is very complicated and depends on many factors. You should consider contacting your tax advisor to determine what makes the most sense for you.

In general, a home equity loan should be considered:

·The lower the interest rate on your first mortgage is
·The shorter the remaining term on your first mortgage is
·The shorter the term is on the second mortgage you are considering
·The higher the rate and points on a new first mortgage
·The requirement of mortgage insurance for a new first mortgage

Comparing monthly payments of your existing first mortgage and a new home equity loan as opposed to a new first mortgage should help. You should also keep in mind the term of each of your loans, especially if monthly payment is not a significant issue for you.

Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. Our nation's central bank, the Federal Reserve, implements policies designed to keep inflation and interest rates relatively low and stable.

Some products allow you to "buy down" the interest rate by purchasing points.

Points are considered a form of interest. Each point is equal to one percent of the loan amount. You pay them, up front, at your loan closing in exchange for a lower interest rate over the life of your loan. This means more money will be required at closing, however, you will have lower monthly payments over the term of your loan.

To determine whether it makes sense for you to pay points, you should compare the cost of the points to the monthly payments savings created by the lower interest rate. Divide the total cost of the points by the savings in each monthly payment. This calculation provides the number of payments you'll make before you actually begin to save money by paying points. If the number of months it will take to recoup the points is longer than you plan on having this mortgage, you should consider the loan program option that doesn't require points to be paid.

If you'd prefer not to make this calculation the "old-fashioned way," we have a points calculator!

If you are interested in paying for points, please contact a Loan Officer to see if this option is available.

The Federal Truth in Lending law requires that all financial institutions disclose the Annual Percentage Rate (APR) when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that closing fees related to obtaining the loan are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. Since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term.

Also, unfortunately, the APR doesn't include all the closing fees. Fees for things like appraisals, title work, and recording fees are not included even though you'll probably have to pay them.

For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Look at total fees, possible rate adjustments in the future if you're comparing adjustable rate mortgages, and consider the length of time that you plan on having the mortgage.

Don't forget that the APR is an effective interest rate--not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

The simple rule of thumb for determining if it makes sense to refinance is to analyze the amount that it will cost you to refinance compared to the monthly savings you'll have by reducing your payment. By dividing the cost of refinancing by the monthly savings you can determine how many monthly payments you'll have to make before you've recaptured the initial refinance cost. If you plan on staying in your home longer than the recapture time it may make sense for you to refinance.

To fully analyze whether it's the time to refinance you'll have to look deeper. The remaining term of your current loan must also be considered, as well as your tax bracket. Our refinance calculator can help you determine if it's the right time to refinance.

General Statement

The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires.

A lock is an agreement by the borrower and the lender and specifies the number of days for which a loan's interest rate and points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock.

When Can I Lock?

Our standard procedure is to lock your rate after receiving a satisfactory appraisal of the property. However, we do offer rate options that allow you to lock immediately after loan approval. To discuss your rate lock options, please contact a Loan Officer

Fees

We do not charge a fee for locking in your interest rate.

Lock Period

We currently offer a 30 day lock-in period on our site. This means your loan must close and disburse within this number of days from the day your lock is confirmed by us.

Lock Changes

Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments.

Contact your loan officer.

Our standard procedure is to lock your rate after receiving a satisfactory appraisal of the property. However, we do offer rate options that allow you to lock immediately after loan approval. To discuss your rate lock options, please contact a Loan Officer.

If you've ever purchased a home before, you may already be familiar with the benefits and terms of title insurance. But if this is your first home loan or you are refinancing, you may be wondering why you need another insurance policy.

The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.

The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.

Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies:

1) Owner's Policy. This policy covers you, the homebuyer.

2) Lender's Policy. This policy covers the lending institution over the life of the loan.

Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner's policy that was issued when you purchased the property, so we'll only require that a lender's policy be issued.

Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or, more likely, the information contained in the company's own title plant.

After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

First of all, let's make sure that we mean the same thing when we discuss "mortgage insurance." Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower's death, or homeowners hazard insurance, which protects the property itself. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 3 - 5% of the home's value. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required.

The mortgage insurance premium is based on loan to value ratio, type of loan, and amount of coverage required by the lender. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing.

It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount - below 75% to 80% of the property value. Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value. If you have any questions about when your mortgage insurance could be cancelled, please contact your Loan Officer.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. The law can't stop floods. Floods happen anytime, anywhere. But the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure that you will be protected from financial losses caused by flooding.

We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding.

A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Any lender or broker should be able to give you an estimate of their fees, but it is more difficult to tell which lenders have done their homework and are providing a complete and accurate estimate. We take quotes very seriously. We've completed the research necessary to make sure that our fee quotes are accurate to the city level - and that is no easy task!

To assist you in evaluating our fees, we've grouped them as follows:

Lender Fees

Fees such as points, underwriting fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible.

This is the category of fees that you should compare very closely from lender to lender before making a decision.

Third Party Fees

Fees that we consider third party fees include the appraisal fee, the credit report fee, document preparation fees, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees.

Third party fees are fees that we'll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.

Typically, you'll see some minor variances in third party fees from lender to lender since a lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees such as the flood certification fee, the tax service fee, or courier/mailing fees.

Taxes and Other Government Fees

Fees that we consider to be taxes and other government fees: State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose.

Prepaids and Escrows

You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items.

One of the more common required advances is called "per diem interest" or "interest due at closing."  Some of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you'll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we'll collect interest from June 15 through June 30 at closing. This also means that you won't make your first mortgage payment until August 1. This type of charge should not vary from lender to lender, and does not need to be considered when comparing lenders. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

If an escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due.

If your loan requires mortgage insurance, up to two months of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.

If your loan is a purchase, you'll also need to pay for your first year's homeowner's insurance premium prior to closing. We consider this to be a required advance.

There's no cost at all for completing our application.

None of the loan programs we offer have penalties for prepayment. You can pay off your mortgage any time with no additional charges.

There is no charge to you for the credit information we'll access with your permission to evaluate your application online. You will only be charged for a credit report if you decide to complete the application process after your loan is approved.

At Town & Country Bank, we offer a wide variety of mortgage products to serve your needs.  However, at this time you can only use our online application to apply for certain types of mortgage products (fixed rate consumer real estate mortgages). If you receive the “No Online Program Available” message, do not be discouraged as we may still be able to provide the financing you are looking for. Contact one of our Loan Officers to discuss your mortgage needs!

First, you'll complete our online application!

The application will ask you questions about the home and your finances and takes less than 20 minutes to complete. As soon as you've finished the application, we will be notified and we'll review your request.

After completing your application, a Loan Officer will contact you to introduce himself or herself and to answer any questions you may have. Your Loan Officer is a mortgage expert and will provide help and guidance along the way. He or she will ask you for any information required to make a decision about your loan.

If you are purchasing a new home, the Loan Officer will also contact the Real Estate Broker or the seller so that they'll know whom to contact with questions.

We'll send you an application package and begin working towards closing your loan.

The application package will be sent to you and will contain papers for you to sign and a list of items we'll need to verify the information you provided about your finances during the online application.

Once we receive your completed application and your intent to proceed with the application, we'll order the appraisal from a licensed appraiser who is familiar with home values in your area.

Title insurance will be necessary. We'll make sure title work is ordered in a timely manner. We'll use the title insurance to confirm the legal status of your property and to prepare the closing documents.

We'll contact you to coordinate your closing date.

After we received the application package back from you and the appraisal and title work, we'll contact you to schedule your loan closing. If you are purchasing a home, we'll also schedule the closing with the real estate broker and the seller.

The closing will take place at the office of a title company or attorney in your area who will act as our agent or at the bank. A few days before closing, you will receive a preliminary Closing Disclosure to review your final fees, loan payments, and other loan information. Your Loan Officer will contact you to walk through the final information so that there won't be any surprises at closing.

That's all there is to it! You're on your way to the most convenient home loan ever!

Completing our online application is as easy as 1-2-3! We'll ask you questions about your personal finances and the home. You'll probably know all the answers off the top of your head.

The application is broken down into sections and you can track your progress through each section at the top of each screen. It should take less than 20 minutes to complete the application.

Move through the application by using the back and next arrows at the bottom of each screen. Don't use the back and next button on your browser while you're completing the application.

We use exciting new technology in order to provide you with the most convenient online mortgage application ever! As you answer some of the questions, you'll note that questions below may change, disappear or new questions are added instantly. We don't ever want to waste your time asking for information that isn't important in your situation, so we evaluate the information we need based on your answers. Isn't that what amazing customer service is all about?

If you need additional help answering a question, click on the question mark at the end of the question for more information.

If you don't have time to complete the application right now or if you need to gather information before you finish, we'll save the information you have completed. When you're ready to finish, return to the site and enter your User ID and password to continue.

A credit score is one of the pieces of information that we'll use to evaluate your application. Financial institutions have been using credit scores to evaluate credit card and auto applications for many years, but only recently have mortgage lenders begun to use credit scoring to assist with their loan decisions.

Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness.

Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 300 to 900. Generally, the higher your credit score, the lower the risk that your payments won't be paid as agreed.

Using credit scores to evaluate your credit history allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision and we never evaluate an application without looking at the total financial picture of a customer.

An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing.

But don't overreact! The data used to calculate your credit score doesn't include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don't limit your mortgage shopping for fear of the effect on your credit score.

Yes, you can borrow funds to use as your down payment! However, any loans that you take out must be secured by an asset that you own. If you own something of value that you could borrow funds against such as a car or another home, it's a perfectly acceptable source of funds. If you are planning on obtaining a loan, make sure to include the details of this loan in the Expenses section of the application.

Prior to closing, we will need a copy of the new loan agreement. We will also verify that the loan proceeds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the funds into your account.

Unfortunately, if you are purchasing a home, we'll have to use the lower of the appraised value or the sales price to determine your down payment requirement.

It's still a great benefit for your financial situation if you are able to purchase a home for less than the appraised value, but our investors don't allow us to use this "instant equity" when making our loan decision.

If you'll be withdrawing funds from a 401(K) or retirement account to fund your down payment, we'll probably ask you to provide evidence that you have the funds available by providing a recent statement. We may also need to verify whether or not repayment is required. If repayment is required, it's not a problem. We'll just consider that monthly payment when making your loan decision.

Prior to closing, We will verify that the funds have been withdrawn from the 401(K) and transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the funds into your account.

Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we'll evaluate your information for qualification and issue an approval subject to you finding the perfect home. We'll issue a pre-approval letter. You can use the pre-approval letter to assure real estate brokers and sellers that you are a qualified buyer. Having a pre-approval for a mortgage may give more weight to any offer to purchase that you make.

When you find the perfect home, you'll simply call your Loan Officer to complete your application.

If you have forgotten your password, click on the "Forgot Your Password" link. Enter the username you created when you began the application. We will send you an email with instructions on how to reset your password. If you cannot remember your username, contact us at 573-729-3155.

Information About Our Site Security

We use leading-edge technology to ensure that all customer information is safe. We protect our customers by using a combination of security measures that are among the best in the e-commerce industry.

Encryption

All customer information is encrypted using Secured Socket Layer (SSL) technology supported with digital certificates provided by Starfield Technologies. This means that your loan application information is safe and secure as it travels over the Internet.

Firewall Security

We use leading firewall and network security technology to protect our internal computer systems from unauthorized access. Our customers can be confident that their personal information is completely safe and private after they apply.

Typically, income from a second job will be considered if a one-year history of secondary employment can be verified.

Generally, only income that is reported on your tax return can be considered when applying for a mortgage. Unless, of course, the income is legally tax-free and isn't required to be reported.

Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period.

We'll review and average the net income from self-employment that's reported on your tax returns to determine the income that can be used to qualify. We won't be able to consider any income that hasn't been reported as such on your tax returns. Typically, we'll need at least one, and sometimes a full two-year history of self-employment to verify that your self-employment income is stable.

If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income. We'll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won't be counted against your rental income.

If you haven't owned the rental property for a complete tax year, we'll ask for a copy of any leases you've executed and we'll estimate the expenses of ownership.

Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered for repayment.

In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We'll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any.

If you haven't been receiving bonus, overtime, or commission income for at least one year, it probably can't be given full value when your loan is reviewed for approval.

We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. This can usually be verified with a copy of your award letter.

If you're receiving tax-free income, such as social security earnings in some cases, we'll consider the fact that taxes will not be deducted from this income when reviewing your request.

Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. This is particularly true if you made employment changes without having periods of time in between without employment. We'll also look at your income advancements as you have changed employment.

If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time of predicting your earnings without a history with your new employer.

If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."

All student loans, whether deferred, in forbearance, or in repayment (not deferred), should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter 1% of the student loan balance.

An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. Do not include payments on other living expenses, such as insurance costs or medical bill payments. We'll include any installment debts that have more than 10 months remaining when determining your qualifications for this mortgage.

Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We'll ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you.

If your loan request is for more than 80% of the purchase price, we'll need to verify that you have at least 5% of the property's value in your own assets.

Prior to closing, we will require a gift letter be signed by the donor and we will verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.

If you're selling your current home to purchase your new home, we'll ask you to provide a copy of the settlement or closing statement you'll receive at the closing to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that's the case, we'll just ask you to bring your settlement statement with you to your new mortgage closing.

Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate you'll be receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you'll be leaving should be entered as a previous employer. We'll sort out the details after you submit your loan for approval.

Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt doesn't affect your ability to obtain a new mortgage we'll leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last twelve months.

If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that four years have passed since the bankruptcy or 7 years have passed since the foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards.

If you've moved frequently, it really has no affect on your application. We'll ask for your residence history for the last two years to insure that the proper credit records are considered when obtaining your credit report, but it certainly won't affect your ability to obtain a mortgage.

Certain loan products require the verification of rental payment history. In most cases, we won't need to contact your landlord at all. However, if you have a limited credit history obtaining information about your rental payment history may help us to approve your loan. Please let us know if you would prefer that we not contact your landlord.

We ask for your daytime phone number so that we know the best way to reach you. If you can't take calls during the day, please provide us with an alternative means of contact. We'll contact you after work hours or via e-mail, if you prefer.

We use closing agents and attorneys to conduct our loan closings for most loans. However, some closings are able to be done at the bank. We'll schedule your closing to take place in a location that is convenient.

Your application will be submitted to a Loan Officer. The Loan Officer will review your application and contact you.

There's absolutely no obligation to complete your application - even after you submit your loan for approval.

Federal and State laws require that mortgage lenders provide certain disclosures at the time a customer completes an application. Those laws apply to online lenders as well as traditional lenders. Some of the most common disclosures include information about certain loan types and information about any application fees or deposits that may be required. We won't display any of these disclosures until you get to the end of our application, since the disclosures that must be displayed will vary depending on information you will provide during the application. You'll be able to print copies of the disclosures.

Unfortunately, we must have your approval to receive disclosures online so that you can continue to complete our online application. Without that approval, it won't be possible for you to apply online with us. When you apply online, you can download or print copies of the disclosures from the website. You can also request paper copies from the bank. 

 However, you can always apply in person at any of our branch locations and receive paper copies of the disclosures.

Contact your Loan Officer or the bank at 573-729-3155 and we will send you paper copies of your disclosures.

You can contact your Loan Officer and we will accommodate your request.

The first disclosures you had received are based on information you provided at the time of your application. You will receive an updated disclosure at least three business days prior to closing reflecting any changes you had made. However, if you would like updated copies based on changes that have occurred since your application, contact your Loan Officer.

The purpose of your home equity loan doesn't make a difference to us and won't affect your approval decision. It does make a difference to the federal government, however! We'll use the information you provide about the purpose of your loan to determine if certain characteristics of your loan must be reported.

You are never too old for a 30-year mortgage! Seriously, Federal law prohibits all lenders from discriminating based on age. You should apply for whatever mortgage you are comfortable with - no matter what your age.

Our goal is to have your loan ready for closing as soon as possible! Generally the items that take the longest to receive are things such as the appraisal and the title work. We'll want to get those ordered as soon as possible to avoid any delays.

If you are purchasing a new home, we'll do our best to meet the date you and the seller have agreed upon. If you are refinancing or obtaining a home equity loan, it rarely takes more than 30 days to close. If you are refinancing and have a second mortgage that you don't want to pay off with your new loan closing could take a little longer since we'll need the permission of your second mortgage holder before we can close.

One of the first things we'll do after your loan is approved is to contact the broker to discuss the items required for closing that the broker or seller might be responsible. Though there is some variance across the country, generally the broker is scheduling the appraiser's inspection of the home. We'll make sure that everything necessary has been taken care of so that your closing happens as efficiently as possible.

The broker may also want to know that you have taken the steps to obtain financing and that your loan request has been approved. We'll only provide basic information about your loan approval. It's really up to you to decide what details you want to share. Please let us know if you would like to include your real estate broker in status updates of your loan.

The year you purchased your home and the price you paid for it are provided to the appraiser to assist them in finding data about your home through local public records. In addition, if you purchased your home in the last year some of the loan programs we offer require us to compare the original purchase price to the current appraised value so that any large increases in value can be justified.

If you don't remember the exact year and purchase price of the property an estimate will work just fine.

If you're not sure exactly how much the annual real estate taxes are for the property you are purchasing, an estimate will do. The appraiser and title company will provide us with the exact amount later. If you do need to estimate the amount, shoot for the high side just to be sure.

If you have a second mortgage that you don't want to pay off with your new first mortgage we'll have a little extra work to do. We'll need to get the permission of your second mortgage lender to pay off your existing mortgage and replace it with your new mortgage. Generally, their major concern will be the relationship of your new loan amount to the value of the home.

Your second mortgage lender will probably ask us to provide some documentation such as a copy of the mortgage note you'll be signing and the appraisal before they provide their approval. We won't be able to schedule your loan closing until we receive their approval. You may want to consider a lock period of more than 30 days to insure we don't run out of time.

The information we need about additional assets that you own does not have to be exact. Don't worry about providing exact values for your assets, estimated values are all we'll need on the application. After application, we may require you to provide statements on certain assets to verify you have sufficient funds for down payment, closing costs, etc.

There is no charge to you for the credit information we'll access with your permission to evaluate your application online. You will only be charged for a credit report if you decide to complete the application process after your loan is approved.

We use closing agents and attorneys to conduct our loan closings for most loans. However, some closings are able to be done at the bank. We will schedule your closing to take place in a location that is convenient. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you, but in some states, these two events actually happen separately.

During the closing you will be reviewing and signing several loan papers. The closing agent, attorney, or loan officer conducting the closing should be able to answer any questions you have.

Just to make sure there are no surprises at closing, you will receive a preliminary Closing Disclosure at least three business days prior to closing to review your final fees, payments, loan amount, etc.

The most important documents you will be signing at the closing include:

Closing Disclosure

This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees and an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the closing disclosure will also include a listing of any fees related to the transaction between you and the seller. If this loan will be a refinance, the closing disclosure will show the payoff of mortgages or other debts that will be paid in full with your new loan. This document is also commonly known as the closing statement and both the buyer and the seller must sign this document. It is very similar to the loan estimate that you received immediately after your initial application, except is has been updated to reflect the final rate and fee information. Federal law requires that all lenders provide you with this document at closing.

Note

Also known as the Promissory Note, this is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Deed of Trust

This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Deed of Trust restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Mortgage instead of a Deed of Trust.

If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing.

In some areas of the country it is very customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. By all means, we recommend that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your Loan Officer. We'd be happy to provide any information necessary.

The most important documents you will sign at closing are the note and the deed of trust. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Loan Officer.

If you won't be able to attend the loan closing, contact your Loan Officer to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we're able to mail you the documents in advance so that you can sign them in the presence of a public notary and forward them to the closing agent. We're sure to have a solution that will work in your circumstances.

Automated monthly payments are available. At the loan closing an automated payment application can be approved upon request. Simply return it at your earliest convenience to enroll in the automated payment program.