We'll Help You Every Step of the Way
We have the expertise - and will take the time - to ease you through the home loan process ... from the day you apply to the moment you're holding the keys to your new home. In
five basic steps, here's what you can expect:
STEP 1: Meet with a Loan Officer
A SouthEast Bank & Trust loan officer will meet with you to explain what to expect in buying a home. We'll meet at a time and location that's convenient for you and we will answer many of your questions. To get the greatest benefit from this initial meeting, please bring the following:
- Income - Last two pay stubs and the last two years W2 forms.
- Bank Accounts - Last two months statements.
- Tax Returns - Most recent two years if self employed.
- Equity In Your Home - If you own your residence, EQUITY is the difference between what your house is worth and what you owe. Copies of your most recent property tax assessment and monthly mortgage statement would be helpful.
STEP 2: Pre-Qualify for Your Loan... Then Go House-Hunting
An important step in purchasing a home is determining what you can afford to spend on the monthly mortgage payment. That amount depends on your income, employment status, current debt, and other factors such as current interest rates. We will quickly evaluate your financial situation and give you an on-the-spot estimate of what you can afford. Then, you'll be ready to shop for only the homes that are in your price range ... saving you time, effort and money. We can even pre-approve your application so that you will feel confident when making an offer on a new home.
STEP 3: Apply for a Loan
During the initial meeting with your loan officer, we will assist you in completing a loan application that requests additional financial, employment and personal information. The more complete you are in supplying this information, the faster we'll be able to process, approve and close your loan.
Your loan officer will ensure you apply for the right type of loan by explaining your payment options and terms. We'll help you evaluate a fixed-rate versus an adjustable-rate mortgage. We'll also help you explore special loan programs such as VA and FHA (see full descriptions under the "Types of Loans" section of this webpage). We'll work closely with you to customize a mortgage that's right for you!
STEP 4: Consider All the Costs
Once you've decided on the home you desire, you need to be fully aware of expenses beyond your monthly mortgage such as property taxes, insurance and utilities. For estimates of these expenses, ask the present owners or your real estate agent. You can verify property taxes through your local tax assessor's office. Also, contact your insurance agent to obtain an estimate for homeowner's coverage. Pass this information to your loan officer.
SouthEast Bank & Trust will also make sure you fully understand your closing costs by providing you with a "good faith" estimate. By reviewing this estimate prior to the loan closing, you can plan expenses - and avoid last-minute surprises.
STEP 5: The Loan Closing
The final stage in the loan process is the Loan Closing. It's the date on which the title for the property passes from the seller to the buyer ... the day you take legal ownership of your new home. During closing, all details are finalized, checks are exchanged, paperwork is completed, fees are paid and you receive the deed and keys to your property. The meeting usually is conducted at the bank or a title company. Before closing day, we'll make sure you fully understand your closing costs so you can plan expenses. Closing costs vary depending on financing, but they generally include items such as: down payment, appraisal fees, prorated property taxes and insurance, attorney's fees and lender's fees/expenses.
On occasion after closing, we assign, sell or transfer servicing of some home mortgage loans to mortgage companies. This allows us to offer a variety of solid financing options to give you the best possible rate. However, we will be available to answer any questions you may have should your loan be sold.
Types of Loans
There's a range of mortgage choices available for home loan financing. Some offer payments that are set for the life of the mortgage, while others feature smaller initial payments that will fluctuate with interest rate changes. Your choice in financing will depend on your unique set of circumstances - your financial lifestyle. To help you make an informed decision, we'll make sure you understand the best option for your current situation.
Fixed Versus Adjustable Rate
- Fixed-Rate Mortgage - This type of financing features an interest rate that is set for the life of the loan, offering predictable monthly payments. This loan usually has a higher interest rate than an adjustable-rate mortgage.
- Adjustable-Rate Mortgage (ARM) - ARMs normally start with an interest rate that's lower than fixed-rate mortgages. But the interest rate (and your monthly loan payment) will move up or down according to market conditions. Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.
Other Home Financing Options
Construction Loans
If you're building a home, a construction loan can be an ideal source of cash through the building process. Interest rates are competitive and closing costs are minimal. And you won't pay any interest until the funds are drawn, giving you a convenient and affordable way to meet ongoing building expenses. Plus, upon completion, we can easily and smoothly fund a permanent mortgage to pay off your construction loan.
Refinance ... Save!
When interest rates drop by at least 1.5 percent below your existing loan rate, you may be able to save money by refinancing your loan. Contact SouthEast Bank & Trust to help you determine if refinancing can help you:
- Reduce Your Interest Rate - A lower interest rate means lower payments.
- Reduce Your Mortgage Term ... And Pay Off The Loan Faster - Refinancing to a shorter term mortgage can save you thousands of dollars in interest charges over the life of the loan.
- Convert Your Equity Into Instant Cash - Borrowing against the equity in your home can be a low-cost and often tax-deductible way to get extra money. Plus, mortgage interest rates are usually lower than other types of consumer loans.
My We Help You?
Let us help make your dreams of home ownership come true. Call or go by any SouthEast Bank & Trust office today.
