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Wyoming Bank
& Trust
R e a l E s t a t e M o
r t g a g e L
o a n s
The Home Mortgage Experts
Wyoming Bank & Trust is pleased to offer residential mortgage loans. Our
experienced real estate staff provide quick, courteous and professional service for
financing your new home, refinancing your existing home, or programs for investment
properties. We offer FHA, VA, WCDA, and conventional permanent loans with a variety of
financing structures available.
Mortgage Terms
Mortgage Loan Application Checklist
Financing Procedures
MORTGAGE
LOAN APPLICATIONS: Personal loan application forms are available over the
Internet. These forms are provided for your convenience and may be completed on your
computer, but do require to print the form and mail or bring the completed application to
Wyoming Bank & Trust.
Some
terms you will hear when you are buying a home.
Applying for a mortgage means taking a large financial step. You will hear many
strange terms throughout the process. Becoming familiar with these terms through use of
this "dictionary" will help you feel more in touch.
Adjustable Rate Mortgage (ARM) - is a mortgage in which the interest rate is
adjusted periodically based on a preselected index.
Amortization - means loan payment by equal periodic payments calculated to pay off
the debt at the end of a fixed period, including accrued interest on the outstanding
balance.
Annual Percentage Rate (APR) - is the cost of credit expressed as an annual rate.
It must be calculated using a formula set by federal law and disclosed to the Borrower to
aid in comparing difficult credit plans. All finance related charges imposed by a Lender
are included in this calculation, and an APR is always higher than the simple interest
rate rate when such finance charges like points, origination fees or mortgage insurance
are charged by the Lender.
Appraisal - an estimate of the value of property; made by a qualified professional
called an "appraiser."
Closing Costs - usually include an origination fee, discount points, appraisal fee,
title search and insurance, survey, taxes, deed recording fee, credit report charge and
other costs assessed at settlement. The costs of closing are usually about 2% to 4% of the
mortgage amount.
Commitment - an agreement, often in writing, between a Lender and a Borrower to
loan money at a future date subject to the completion of paperwork or compliance with
stated conditions.
Construction Loan - a short-term interim loan for financing the cost of
construction. The Lender advances funds to the builder at periodic intervals as the work
progresses.
Conventional Loan - a mortgage not insured by FHA or guaranteed by the VA or
Farmers Home Loan Administration (FmHA).
Credit Report - a report documenting the credit history and current status of a
Borrower's credit standing.
Debt-To-Income Ratio - the ratio, expressed as a percentage, which results when a
Borrower's monthly payment obligation (including proposed housing expense) is divided by
his/her gross monthly income.
Down Payment - money paid to make up the difference between the purchase price and
the mortgage amount.
Equity - the difference between the fair market value and current indebtedness;
also referred to as the Owner's interest.
Escrow - Refers to an account held by the Lender into which you would pay money for
taxes and insurance payments.
Federal Home Loan Mortgage Corporation (FHLMC) - also known as "Freddie
Mac"; a quasi-governmental agency that purchases conventional mortgages from insured
depository institutions and HUD-approved mortgage bankers.
Federal National Mortgage Association (FNMA) - also known as "Fannie
Mae"; a tax-paying corporation created by Congress that purchases and sells
conventional residential mortgages as well as those insured by FHA or guaranteed by VA.
This institution, which provides funds for one in seven mortgages, makes mortgage money
available and more affordable.
Fixed-Rate Mortgage - a mortgage on which the interest rate is set for the term of
the loan.
Gross-Monthly Income - the total amount the Borrower earns per month, before any
expenses or taxes are deducted.
Loan-To-Value Ratio - the relationship between the amount of the mortgage loan and
the appraised value or sales price, whichever is less, expressed as a percentage.Mortgage
- is a legal document pledging real estate as security for a loan.
Mortgage Insurance Premium (MIP) - a premium paid for a mortgage insured by FHA
calculated by factors. The appropriate factor is determined by the loan term and how much
of a down payment is made.
Points (Loan Discount Points) - prepaid interest assessed at closing by the Lender.
Each point is equal to 1% of the loan amount (e.g., two points on a $100,000 mortgage
would cost $2,000).
Prepayment - a priviledge in a mortgage permitting the Borrower to make payments in
advance of their due date.
Private Mortgage Insurance (PMI) - the premium paid on conventional loans with less
than 20% down payment. The premiums are determined by the term of the loan, type of loan
(ARM or fixed rate), and loan-to-value ratio. Note: MIP and PMI should not be confused
with mortgage life insurance, which pays the outstanding mortgage debt if the Borrower
holding the insurance policy dies. Rather, they protect the Lender if the homeowner
defaults on their loan.
Title Insurance - a policy, usually issued by a title insurance company, which
insures you against errors in the title search. The cost of the policy is usually a
function of the value of the property and is often borne by the Purchaser and/or Seller.
Note: The information provided is for your general guidance; Wyoming
Bank & Trust may require different or additional information. The loan charges and
fees for services mentioned are provided only for examples. The fees and loan charges may
vary depending upon the type of loan. You will receive a Good Faith Estimate of Settlement
Costs which, though still an estimate, will be more specific to the loan product for which
you have applied. |
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Mortgage Loan Application Checklist
To speed processing, bring the following information when you apply for your mortgage
loan:
- Accepted purchase offer with any amendments or counteroffers signed by all parties.
- Names and addresses of banks, credit unions, or thrifts in which you have accounts,
including account numbers and balances in each account.
- List of any stocks, bonds, Certificate of Deposits, and other securities showing current
market value, recent monthly and/or quarterly statements, account numbers, etc.
- Address, current market value, original loan amount, and current balance owing for any
real estate owned, with the account number for each property. Provide same information for
previously owned and paid-for real estate. Verification of net proceeds on sale if
property is under contract.
- Your social security number.
- Your annual gross salary (list overtime or bonuses separately), last two years Form W-2,
and most recent payroll voucher, when available.
- If self-employed, copies of your federal income tax returns for the previous two years
and a year-to-date profit and loss statement. If employed by your own corporation, copies
of the corporate returns for the previous two years and a year-to-date, profit and loss
statement, as well as copies of your federal income tax returns for the last two years.
- Names and addresses of all the employers for the previous two years.
- If you choose to use your social security, disability, or pension income, bring a copy
of a check or award certificate from the issuing agency.
- Complete list of all obligations including installment loans, auto loans, student loans,
department store balances and credit card balances.
- If you have been a party in any legal proceedings (e.g., divorce), be prepared to
provide a copy of any documents showing evidence of your rights to additional income or
obligation of additional payments resulting from the action.
- Alternative documentation for employment, deposit accounts and mortgage payment history:
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- Please provide the original Form W-2's for a two-year period and most recent pay stub
for the previous 30 days.
- Please provide original deposit account statements for the most recent three months.
- Please provide cancelled checks for the last 12 months or a year-end mortgage account
statement which provides a payment receipt history.
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Financing Procedures
After you have decided on the home you want to buy, you will make an offer-to-purchase
to the Seller through your sales associate. Once the Seller and you agree on the price by
signing the offer-to-purchase, you then can start your final loan application.
- You will interview with your loan officer - providing the information listed on the
"Application Checklist."
- The appraisal is ordered to verify the value of the home. Also, a mortgage report is
requested from a credit reporting agency to verify your credit and other important
information.
- We continue to process your application by verifying, in writing, your job, income,
debt, assets, credit, etc.
- We will do final underwriting after all the information is compiled and received.
- After all the information is complete, we will notify you and your sales associate of
the answer as soon as possible.
- Once a date and time are agreed on by all parties, a closing can be scheduled with the
closing agent.
- You, the Buyer, will need to bring a certified check for the proper amount to the
closing. You should also have your insurance agent contact us with the The closing agent
will have you sign all proper documents and will supply you with copies of these forms.
Approximate time for closing is one hour.
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