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 / Adjustable Rate Mortgage (ARM) Loans
- An ARM loan
offers you some protection while periodically adjusting to current
market interest rates.
- Your interest
rate regularly adjusts to current market interest rates to assure
that your loan is competitively priced.
- Your interest
rate is indexed to comparable U.S. Treasury securities.
Multi-Year Balloon Loan
You can fix
the initial rate on your loan from one to five years, after which
time the rate will adjust according to the terms of your note.
Construction Loan
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
Dwight 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
- 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
|
