Mortgage
Dream Loans for Dream Homes
Purchasing
a home can be one of the most satisfying and exciting experiences
of
a lifetime. Whether you’re a first-time home buyer, moving up
to a larger home or refinancing your current residence, you’ll
find
Southern Heritage Bank is here to help you every step of the way.
Before you go house hunting, your first call should be to Southern
Heritage
Bank, where you can expect to be treated with a difference! Call Joy
Akins, Kristi Branham, Taylor Gobble or Brenda Gasaway at 473-7980.
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. To help you make an informed decision, we’ll
make sure you understand the best option for your current situation.
- 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 kind of 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.
If
you’re building a home, our one-time closing construction/ permanent
loan is ideal. Using this process you pay closing cost one-time only
for your construction and your permanent loan. Interest rates are competitive
and closing costs are minimal. And you won’t pay any interest until
the funds are drawn or used, giving you a convenient and affordable
way to meet ongoing building expenses. And when construction is completed,
your permanent loan is already approved and ready for you.
When
interest rates drop by 1.5-3.0 percent below your existing loan rate,
you may be able to save money by refinancing your loan. Contact Southern
Heritage Bank to help you determine if refinancing can help you:
- Reduce
Your Interest Rate – A lower
interest rate can mean 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 Home’s 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
Southern
Heritage Bank offers several government-sponsored home ownership lending
programs. These special financing options are designed to lower your
interest rate, down payment amount and/or closing costs. Here are a
few examples:
- Federal
Housing Association (FHA) Loans – These loans offer the benefit
of a low, 3-5 percent down payment. And sometimes, closing costs can
be included in the loan amount to further reduce up-front costs
- Veterans
Affairs (VA) Loans – VA loans make 100 percent financing
available to qualified military veterans with at least six months
of active duty. This loan also is available to the unmarried spouse
of a deceased veteran whose death was service related, or the spouse
of an MIA or POW
- Tennessee
Housing Development Association (THDA) Loans – First-time
buyers, or those who have not owned a home within at least three years,
may qualify for these lower-down-payment loans (financing is subject
to the availability of state funding)
We have the experience
– and will take the time – to lead you through the home loan
process. You can be assured we’ll be with you step-by-step ...
from the day you apply for your loan 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 Representative
A Southern Heritage loan representative will meet with you to explain
everything to expect in buying a home. We’ll meet at a time and
location that’s convenient for you, and will answer many of your
questions. To get the greatest benefit from this initial meeting, please
bring the following:
- Income/Expenses
– Accurate list of monthly/annual household income and expenses
- Bank Accounts
– Savings, checking and CD account balances
- Loans –
Balances due to banks, finance companies and others
- Credit Cards
– List of all balances and bring copies of most current statement(s)
- 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 the most
recent property tax assessment and monthly mortgage statement would
be helpful
- Tax Returns
–
Most recent Federal Income Tax return
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
employment status, current debt, family size and other factors. 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.
STEP 3: Apply
For Your Loan
During the initial meeting with your loan representative, you’ll
receive 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
on your loan. Once we have all the required information, your Southern
Heritage Bank loan representative can usually provide your loan approval
status within 24 hours.
Your loan representative will help you apply for the right type of loan
by explaining your options, such as a fixed-rate versus an adjustable-rate
mortgage. We’ll also help you explore special loan programs such
as VA, FHA and THDA. Click here for full descriptions.
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
the local tax assessor’s office. Also, contact your insurance agent
to obtain an estimate for homeowner’s coverage. Pass this information
to your loan representative for review before you sign a real estate
contract.
Southern Heritage Bank will also make sure you fully understand your
closing costs prior to your loan closing so you can plan expenses –
and avoid last-minute surprises. 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.
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 to your property.
The meeting could take place at the bank or an attorney’s office.
May We Help You?
Let us help make your dreams of home ownership come true. Contact your
nearest Southern Heritage Bank office and talk to one of our loan representatives
… where you can Expect A Difference!
