1. What items is the lender going to ask me for on a purchase transaction? Answer
2. Are different items needed on a refinance then a purchase? Answer
3. How does the loan flow and what can I expect Answer
4. What is minimum credit score and loans types offered? Answer
5. What credit scores are required or recommended for the products we offer? Answer
6. How do I know how much house I can afford? Answer
7. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
8. How do I know which type of mortgage is best for me? Answer
9. What does my mortgage payment include? Answer
10. How much cash will I need to purchase a home? Answer

Q : What items is the lender going to ask me for on a purchase transaction?
A : Basics: (Required in most cases) Fully executed purchase contract Copy of cancelled earnest money check Pay stubs covering 30 days Last two years W-2's Last two years tax returns Driver's License or photo ID Social Security Card on FHA, VA, and RD loans Last two months bank statements on all accounts that I will drawing funds from in order to close Insurance agents name, company name, and contact information that will provide insurance on property Other items that may apply based on your circumstances or history: Proof of income, such as Awards Letter for VA income, pension income, or social security income Copy of Bankruptcy list of creditors and Discharge of Debtor Fully executed Divorce Decree Explanation for inquiries on credit report Explanation letter for any derogatory items on credit Provide proof of property taxes and homeowner's insurance for any other properties owned
 
Q : Are different items needed on a refinance then a purchase?
A : Yes, you still need the same items as on a purchase with the following exceptions: Copy of current mortgage statement If you are paying off debt with funds from refinance you will need to provide payoff statements for installment loans you are paying off, or if paying off credit card debt provide most recent credit card statement CTCB will request your payoff statement on mortgage, you only need to supply the mortgage statement Lenders will often require a letter as to why you are refinancing, here are some example reasons. You may be refinancing to obtain a lower rate, shorten or lengthen your term, get cash out to consolidate debt
 
Q : How does the loan flow and what can I expect
A : Loan officer: Obtain prequalification or conditional approval for your request, Issues Prequalification Letter to you when needed, Quotes and locks your interest rate (YOU choose when to lock), Sends out your Early Disclosures as required by RESPA, Provides loan estimate that gives you estimate of rate, payment, and cost associated with request, Loan officer will need basic items and ancillary items in FAQ 1 & 2, Sends you disclosures for signing or e-signing, ***IMPORTANT the sooner you sign disclosures and return basic items, the faster your loan will move through process***, File Transferred to Opener: Opener will facilitate the gather of all items needed for the loan to go to processor, File Transferred to Processor: Processor will pre-underwite the file and send to underwriting for official decision, Order appraisal and title work for your request, File Transferred to Closer: When approval comes back, closer will call you to collect final items needed to obtain a clear to close, Once loan clear to close, Closer will establish a closing time convenient for all parties and title company, There will be emails sent to you throughout the process keeping you up to date as your file moves through process
 
Q : What is minimum credit score and loans types offered?
A : Refer to the Products tab at top of Home Page
 
Q : What credit scores are required or recommended for the products we offer?
A : FHA will go down to 620, and above 640 is preferable. If your property is a manufactured home a minimum of 620 is required. RD wants 660 but is eligible for manual underwrite to 620 VA down to 620, but we recommend 640 or higher Conventional down to 620, 660 and higher is more acceptable
 
Q : How do I know how much house I can afford?
A : 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.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : 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.
 
Q : How do I know which type of mortgage is best for me?
A : 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. Citizens TriCounty Bank can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & 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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    Q : How much cash will I need to purchase a home?
    A : 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
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