Mortgage
Loans
Buying a new home, building your dream house or refinancing
your existing loan? Our mortgage loan officers are here to help. We
realize that purchasing a home may be the most significant financial
commitment you’ll ever make, so we stick by your side every
step of the way --- from loan application to loan closing.
Types
of Mortgages
Fixed Rate Loans
- Your interest
rate is fixed for the life of your loan, allowing you to lock
in your interest rate and not be subject to changing market conditions.
Variable
Rate Loans
- Your interest
rate regularly adjusts to current market interest rates to
assure that your loan is competitively priced.
Multi-Year Balloon Loans
- You can fix
the initial rate on your loan from one to five years, after which
time the rate will adjust.
Construction Loans
- A balloon
loan in which you’re
pre-approved for a specified amount and draw upon funds
as needed.
- Your monthly payments vary and are based on interest
charged on the
balance of your loan.
- When your home is complete,
you are eligible to refinance into one of the monthly
payment mortgages
listed above.
Affordable Housing Programs
USDA Rural Development Guaranteed Loans
- Long term fixed
rate financing with little or no down-payment requirements.
- Available
to qualified moderate to low income applicants
Down-Payment Plus
- A program focused on providing financial
assistance to qualified low income home buyers in Illinois
who need help in meeting the down-payment requirements and
closing
costs associated with buying a home
- Down-Payment Plus
grants are funded by the Federal Home Loan Bank of Chicago
- To
qualify for grant consideration, your annual household income
must be 80% or less than the area median family income, adjusted
for family size.
Mortgage Insurance
Mortgage Life Insurance
- Pays off your outstanding mortgage balance up to the plan
maximum if you should die before your loan is paid off
- Your
insurance premium is added to your monthly mortgage payment.
Mortgage Disability Insurance
- Pays the insured value of your monthly payments up to the
plan maximum should you become totally disabled.
- Your insurance
premium is added to your monthly mortgage payment.
The Mortgage Loan Process
1. |
Pre-Qualification: Determining
how much home you can afford is the key to the pre-qualifying
process. This will allow you to know exactly what you can
comfortably afford and will help you shop for the perfect
home. |
2. |
Loan
Application: Once you’ve found
the perfect home and your offer has been officially
accepted, the loan application process begins. You
will meet with the Bank of Pontiac mortgage loan
specialist of your choice. Your mortgage loan officer
will provide
you with an application and explain what information
you will need to complete the application. |
3. |
Processing: Once
you’ve completed and turned in your loan application,
we will verify that we can underwrite your loan. |
4. |
Underwriting: Underwriting
determines if the loan package provided is acceptable.
Once the underwriting standards are met and approved, you
are qualified to receive a mortgage on your new home. |
5. |
Loan
Closing: A closing will be held to
finalize your loan. This is a short meeting between
yourself, your attorney, the bank, the seller and
the seller’s attorney. During this meeting,
closing documents are signed, the seller receives
payment and
you officially become a new homeowner. |
Filling Out Your Mortgage Loan Application
Please refer
to the following checklist when preparing to fill out your
mortgage
loan application. You’ll need to include
any items from this list that pertain to your situation.
- Signed purchase agreement (if applicable)
- Residence
address for the past two years
- Name and address of landlord for the
past two years (include on the back of your application)
- Current pay stub verifying 30 days of income and year-to-date
income, including overtime, commissions or bonus income
- W-2 forms for all employers covering the last two years
- If you are self-employed, provide a copy of Corporate or
Partnership tax returns for the last two years,
including all schedules and
signed by a company officer, as well as individual tax returns
- If you are self-employed,
provide copies of your balance sheets for the last two years
- If you are self-employed, provide a copy of your profit and
loss financial statement through the
most recent
quarter/month
- Copy of your most recent social
security award letters
- Copy of your most recent pension/retirement
check, or if directly deposited, a copy of
your bank statement
that
shows
the deposited source and amount
- Most recent
copy of your disability award letter
- Copy of divorce decree
- Complete
bank statements (for all accounts used in making your down
payment or paying
closing costs)
or
any other asset
verification, covering the last two
months
- Complete
itemized list of all monthly payments made by you, including:
Rent,
Mortgage, Credit
Cards, Installment
Loans, Credit
Union Loans, Student Loans, Alimony
Payments, Child Support Payments,
Automatic Payroll
Deductions (ACH)
Prior to your loan closing, you will need to supply proof
of the following:
- Homeowners Insurance
- Flood Insurance (if applicable)
- Termite Inspection
 |
