What documentation do I need to provide?

The documentation required for each loan differs depending on the loan program. Most programs require income, employment, and asset verification. A consultant in the mortgage center will provide you with a list of items needed.

How much do I need for a down payment?

There is no set amount. In fact, you might be surprised to learn that many first-time homebuyer programs require as little as 3% down. Today, there are many loan programs that can be tailored to fit your needs and financial resources. Keep in mind that for down payments of less than 20% on conventional loans, private mortgage insurance (PMI) will be required.

Are there any loan programs that don’t require a down-payment?

Yes there are loan programs that do not require a down payment, depending on credit, employment history, and other determining factors. Please contact one of our mortgage consultants for more information.

How much cash will I need to purchase a home?

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 house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

How do I know how much house I can afford?

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.

How does Table Rock Community Bank use my credit report?

We use your credit report to evaluate your mortgage request and determine how you have handled your credit obligations in the past

Can I buy a home if I have less-than-perfect credit?

Yes. Keep in mind that lenders don't just look at your credit history, but also at your ability and willingness to pay in the future. We may be able to help you buy a home, even if your credit isn't perfect.

If I’ve filed bankruptcy in the past few years, will I still qualify for a mortgage loan?

Yes, it is still possible to qualify for a mortgage. There are many programs out there for people looking to purchase a home but have lower than average credit. Credit is one of the determining factors when qualifying for a loan, but not the only one

Which is better: a fixed or adjustable interest rate?

If you plan to be in your home for more than seven years, you may want to consider a fixed-rate mortgage, which offers predictable payments and long-term protection against rising mortgage interest rates. If you plan to be in your home for seven years or less, an adjustable-rate mortgage (ARM) could be attractive. Keep in mind that with an ARM, your monthly payments have the potential to go up each time your interest rate adjusts

How is my monthly mortgage payment applied to my mortgage loan?

Your monthly mortgage payment includes a payment to the principal balance, interest, and escrow, otherwise known as P.I.T.I. (principal, interest, taxes and insurance).

What is the difference between pre-qualification and pre-approval?

Pre-qualification is a lender's judgment of your ability to make payments on your mortgage, based on your verbal statement of income, assets, and employment history. Pre-approval is the underwriting decision that you are conditionally qualified and is subject to the lender's review of your completed application, verification of your income, assets, employment history, credit check, appraisal and other determining factors.

What is the difference between the interest rate and the annual percentage rate (APR)?

The interest rate is the rate you agree to pay for your mortgage loan. It is used to determine the interest portion of your monthly payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate.

What is a discount point?

A discount point is generally a percentage of the loan amount and is paid to the lender to buy down or lower an interest rate.

What is an escrow account?

Your monthly payment includes an amount which is placed in a fund held by the mortgage company to pay your annual property taxes and insurance premiums. This fund is referred to as an escrow account.

What is a rate lock?

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.