Home Loans

Buying a home is an exciting event. Home ownership is also one of the most important financial investments you will ever make. A home can be an excellent investment and may provide you with added tax benefits.

However, since this purchase will affect your personal and financial life, you will want to approach the process knowledgeably. The following topics are ones that you should consider carefully as you move towards your purchase, especially if this is your first home. Should you have any additional questions, the mortgage lenders at TrustBank will be happy to assist you. (Contact a tax advisor about your individual tax situation.)

Basic Steps To Home Ownership

• Choose a lender.
• Call TrustBank and get pre-qualified for a home loan.
• Decide on the type of home and features that are important to you.
• Choose a real estate agent.
• Start looking.
• Do not be afraid to negotiate on the price of the home.
• Contact TrustBank to help you choose the best mortgage for you.
• Prepare for the closing.
• Sign the papers and begin enjoying your new home.

Choose a Lender

TrustBank would like the opportunity to be your mortgage lender. Our Loan Officers have years of experience and are familiar with a range of lending programs to help you make your dream of home ownership a reality.

TrustBank follows the standards for licensing and registration established by the Safe and Fair Enforcement for Mortgage Licensing Act of 2008. To obtain detailed information on employees who originate residential mortgage loans and are registered with the Nationwide Mortgage Licensing System, please visit: http://www.nmlsconsumeraccess.org/.

TrustBank offers both fixed and adjustable rate mortgage loans with personal service and a variety of terms.

Advantages of Being Pre-Qualified

• Pre-qualification allows you to have a realistic price range in which to look for homes.
• You are in a better bargaining position with sellers, since your purchase amount has been pre-certified.
• The final mortgage application process goes more quickly since much of the paper work has already been completed.

Loan Application Checklist

Help to improve the speed of your loan processing by providing accurate, complete information. Here is a summary of the information that you will need to collect for your home loan application:

• Accepted purchase offer with amendments of counteroffers signed by all parties.
• Names, addresses, account numbers and balances of all bank accounts.
• List of stocks, bonds, certificates of deposit and their value.
• Statements of life insurance value.
• Information on any currently held or previously owned real estate.
• Your social security number.
• Your annual gross salary, last year's W-2 forms and most recent payroll voucher.
• Copies of your federal income tax return for the previous two years.
• Names and addresses of all employers for the previous two years.
• Copies of any social security, disability or pension income that you choose to use.
• Complete list of outstanding debt -- including credit cards, department stores, student loans, installment loans (including names of lenders and account numbers).

Mortgage Loan Guide

To help you figure out your estimated monthly principal and interest payment using this guide,
follow these simple instructions:

1. Find the interest rate that applies to your loan in the vertical column along the left side of the chart.
   Example: 7.5%
    
2. Find the loan period in the horizontal row along the top of the chart.
   Example: 30 years
    
3. Find the number where your interest rate and loan period intersect on the chart. This is the Principal and Interest Factor.
   Example: 7.5% interest for 30 years = 6.99 P & I
    
4. Divide the loan amount you want to borrow by 1000.
   Example: $100,000/1,000 = $100.00
    
5. Multiply the divided total by the Principal and Interest Factor you found on the chart.
   This will be your monthly mortgage payment amount.
   Example: $100.00 x 6.99 P & I = $699.00 monthly

Mortgage Period

FYI: Home Mortgage Terms you should know

Adjustable Rate Mortgage (ARM)
Your interest rate is adjusted periodically based on a pre-selected index.

Amortization
Loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

Appraisal
An estimate of the value of property; made by a qualified "appraiser."

Closing Costs
May Include: an origination fee, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement.

Credit Report
A document that verifies credit history and current status of a borrower's credit standing.

Debt-to-income ratio
The ratio, expressed as a percentage, which results when your total monthly payments is divided by your gross monthly income.

Escrow
An account held by the investor into which you pay money for tax and / or insurance payments.

Fixed-rate Mortgage
A mortgage on which the interest rate is set for the term of the loan.

Gross monthly income
The total amount you earn per month, before any expenses are deducted.

Homeowner's Insurance
Lenders require homeowners to purchase homeowner's insurance to protect against fire and in some areas, floods. Most policies also protect the homeowner against theft and liability should someone be injured on the property.

Loan-to-value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

Market value
The highest price that you would pay and the lowest price the seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

Title
A document that gives evidence of an individual's ownership of property.

Title search
An examination of county real estate records to determine the legal ownership of property usually performed by a title company.

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