BankFirst Mortgage Services
'A Better Way to Bank Since 1888'
  Home    Loan Center    Products    About Us    FAQ    Resources  

Please contact one of our friendly Mortgage Lenders for current rates.
1. I want to buy my new home.  Where do I start? Answer
2. I want to build a new home.  Where do I start? Answer
3. What do I need to bring to my application appointment: Answer
4. How do I know how much house I can afford? Answer
5. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
6. How is an index and margin used in an ARM? Answer
7. How do I know which type of mortgage is best for me? Answer
8. What does my mortgage payment include? Answer
9. How much cash will I need to purchase a home? Answer

Q : I want to buy my new home.  Where do I start?
A :

Welcome to Homeownership.  BankFirst is excited about helping with the purchase of your new home and are committed to making the process easy for you.  The following are suggested steps to consider in this process:

  • The very first step should be to meet with your BankFirst Mortgage Lender.  During this meeting ask all the questions you have, and we will prequalify you for your new home.  We will provide you a copy of your estimated closing costs and APR at this meeting.  Consult our checklist of items to bring to your first meeting.
  • Now that you are prequalified you are able to begin the process of finding your new home.
  • Identify the Realtor you want to help you and give them your prequalification letter from BankFirst.
  • When you find your home and execute the Purchase Agreement, have your Realtor fax the Purchase agreement to your BankFirst Mortgage Lender.
  • We will obtain the appraisal, secure your final approval and be ready to close your loan.
  • Determine your insurance agent and provide your Mortgage Lender with a copy of the insurance policy.
  • Be sure to bring certified funds to the closing.
 
Q : I want to build a new home.  Where do I start?
A :

We will try to share with you the many things you should consider when building a new home. We hope these will be beneficial and invite you to contact one of our Mortgage Lenders early in the process so that we can help guide you through your Endeavor.

  • Determine the area you want to build in and the approximate cost of lots or land in that area.
  • Determine the size home you want to build and a general cost per square foot for construction.
  • Contact one of our Mortgage Lenders to discuss.
  • Make loan application and be pre-qualified for your new home.
  • Arrange your construction loan with BankFirst. Your Mortgage Lender will assist with this to make the process easy for you.
  • Select your plans and specifications. Be specific and identify everything in the beginning so that you do not have cost overruns.
  • Identify your prospective builders, check their references and obtain prices. Make sure that each builder is bidding on the same information.
  • Analyze the builder’s proposals and select your builder.
  • Confirm your lot; consult with your builder on the layout.
  • Make sure you have all city and county permits and builder’s risk insurance.
  • Buy your lot.
  • Set your draw schedule with BankFirst, sign all paperwork and begin construction.
  • Decide whether to lock in your permanent rate or float.
  • Request your draws as needed.
  • Contact your Mortgage Lender 30 days prior to completion of your new home.
 
Q : What do I need to bring to my application appointment:
A :
  • Driver’s License
  • Last two months bank statements of all deposit accounts (all pages)
  • Most recent 401-k and retirement accounts (all pages)
  • Both applicants Social Security Numbers
  • Two most recent paystubs
  • Funds for the appraisal if you are paying for it

If self employed or over 20% of your income is in commissions: Last two years personal and business tax returns (all pages)
 
Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. BankFirst can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
    		•
     
    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
    		•
     


    BankFirst Mortgage Services

    Ph: 662-328-2248
    Privacy Policy