Find answers to commonly asked loan questions below!
Not necessarily. Obtaining a low interest rate is certainly a benefit, but it is not the only thing you should consider when choosing your home loan and lender. Other items that should be considered are:
The overall cost of your loan – Consider the annual percentage rate, loan fees, discounts, and origination points.
The financial strength of your lender – Is the loan officer committed to your best interests? Do they deliver what they promised? What is their representation in the community?
You will often find that the best home loan is one that combines a lower (not necessarily the lowest) rate, reasonable cost, and excellent financial strength.
Expect to be asked for the following information when applying for a loan:
Income verification (tax returns for last 2 years and current pay stubs)
Bank account numbers and details about your long-term debt (including credit cards, auto loans, child support, etc.)
Financial statements for any individuals that are self-employed
Origin of your down payment
Be sure to immediately inform your lender of any changes to the above information including changes in employment, salary, debt, or marital status.
Pre-paying your mortgage shortens the term of your loan, which in turn may save you thousands of dollars in interest. If you can’t afford to make extra payments, simply try rounding your monthly payment up to the nearest $100.00.
However, be sure to weigh the advantages and disadvantages of pre-paying your mortgage vs. paying off other debts. If your credit card interest rate is higher than your mortgage interest rate for example, it makes more sense to pay down the credit card first, eliminating the higher-interest debt.
Home Federal will never sell your information to third parties.
Yes, you may still apply for a home loan if you haven’t found a property. Typically it's a good idea to help determine what amount of financing you're qualified for.
Private Mortgage Insurance, or PMI, is typically required when your down payment is less than 20% of your home loan. Private mortgage insurance companies provide this protection. The cost of PMI increases as your down payment decreases. It helps protect lenders against the costs of foreclosure. PMI can come off your mortgage payment once the loan to value reaches a specific percentage and what is required to request removing it (ie. written submission, phone call, etc.).
IRS Form 1098 Mortgage Interest Statements are mailed during the last week of January. If your loan has been paid in full, or the servicing has been transferred to another lender, you will receive an IRS Form 1098 by separate mailing.
The IRS Form 1098 is always reported under the social security number of the primary borrower. It is the borrower’s responsibility to make sure that all appropriate parties file the tax information.
As quick as four hours, but varies depending on each client's unique needs.
Up to 60 month terms are available on new vehicle purchases. Used vehicle terms range from 24-48 months.
