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Whether it's your first or fifth — home buying is one of the most monumental and exciting experiences in your life. It can also be one of the most confusing and frustrating. Fortunately, you don't have to go through it alone. Pinnacle Bank has the experience to help you navigate the process as your ally in home buying. As a community bank with deep roots, we know the people, plays and potential pitfalls of home buying in the local market. Heck, we might even live in the neighborhoods you’ve been looking at! In a competitive environment, our expertise can give you the upper hand in landing the home of your dreams.
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The First-timer
The Refinancer
The Mover
When looking to finance the purchase of your new home, there are many places you can go. Before you make the most significant investment of your life, it’s essential to feel comfortable with your lender. Let’s explore the benefits of community banking!
WHAT TO KNOW WHEN PICKING A LENDER
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THE first-timer | THE REFINANCER | THE mover | About Us
WHAT KIND OF HOMEBUYER ARE YOU?
To Buy or Not to Buy – That is the question when considering your next home
Your guide to Understanding the Home Mortgage Process
Thinking of Buying a Home? Do these five things first
MORE FROM PINNACLE BANK
It’s time
Study Up Check your credit score and assess your spending potential. Make sure the time is right for you to buy (here’s a handy calculator to help crunch the numbers.) And if you are at all unsure, discuss the decision with your lender.
FIRST-TIMER 101
Know the Market What you’ll have to spend on a home depends greatly on where you want to live. Line up your priorities — whether it’s proximity to work, the school district, or neighborhood amenities — then start shopping.
Get a Letter No matter where you are buying, right now everywhere is a sellers’ market. Homes are going quickly, often for above asking price and sometimes even for cash. If you don’t have a letter from your bank prequalifying you for a loan, your offer might not be taken seriously.
Pick a Loan First, you need to know that there are different types of loans, each with its own terms. Do you want a 15-year or 30-year loan? Each will have a different interest rate, monthly principal and interest payment. Also understand the types of interest rates — fixed or adjustable — which fluctuates based on the federal interest rate index.
Plan to Pay While most loans are amortized — meaning you make regular payments — there are other, quicker ways to pay down your loan. Talk to your mortgage lender about what’s available before you sign for your loan.
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How much can you afford?
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Use our calculator to learn more about the cost of your potential mortgage.
Debt-to-Income Ratio
EQUITY
Escrow
PMI
Contingency
Closing costs
Appraisal
Amortization
Private Mortgage Insurance (PMI) is required for qualified buyers who make a down payment of less than 20% toward the purchase price of the home.
Money set aside by the lender that will be used to pay yearly taxes and homeowner’s insurance.
The difference between the value of the home and the mortgage loan.
The ratio of gross income to housing and non-housing expenses.
A clause in the contract that outlines the conditions under which the contract will be executed. These contingencies can be proposed by either party but must be accepted by both.
Costs the buyer must pay at the end of the mortgage process. These can include recording fees, inspection fees and brokerage commissions.
The estimated value of a property based on a physical inspection by a professional appraiser and similar houses that have been recently sold.
The schedule of how the loan will be repaid, including monthly interest and principal to be paid.
AMORTIZATION
APPRAISAL
CLOSING COSTS
CONTINGENCY
DEBT-TO-INCOME RATIO
ESCROW
You’ve waited and saved. You’ve scouted and dreamed. Now you’re ready to put down roots and invest in your family’s future. But what happens after you’ve found your perfect starter home? In this seller’s market, you need to act quickly and decisively. Pinnacle Bank can help you decipher all the jargon and lingo and secure the financing you’ll need to put together a competitive offer. And when the sellers and their real estate agents see Pinnacle Bank on your prequalification letter or behind your offer, they’ll know you’re serious about buying your first home.
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LOAN PRODUCTS TO CONSIDER
Federal Housing Administration (FHA) Loans: 3.5% minimum down payment
U.S Department of Veterans Affairs (VA) Loans: 0% down payment
Rural Development Loans: 100% financing for select rural areas
Nebraska Investment Finance Authority (NIFA) Loads: Subsisted rate for first-time homebuyers
When looking to finance the purchase of your new home, there are many places you can go. Before you make the biggest investment of your life, it’s important to feel comfortable with your lender. Let’s explore the benefits of community banking!
READY TO TALK TO A LOCAL MORTGAGE LENDER?
THE first-timer | THE REFINANCER | THE mover
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Low Down Payment Options
20% Down: No monthly private mortgage insurance
Less Than 20% Down: Upfront mortgage insurance
Conventional
First-Time Homebuyer Loans
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Reach out to one of our mortgage lenders to discuss which products are right for your situation.
The results provided by this calculator are intended for illustrative purposes only and accuracy is not guaranteed by the financial institution.
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THE first-timer THE REFINANCER THE mover About Us
The ratio of gross income to the housing and non-housing expenses.
A clause in the contract that outlines the conditions under which the contract will be executed. These contingencies can be proposed by either party, but must be accepted by both.
THE REFINANCER
rEFINANCER 101
You’re happy in your home and aren’t looking to move or buy an investment property. Refinancing can enable you to tap into the equity of your home to finance repairs or improvements, ditch mortgage insurance and even switch from an adjustable-rate mortgage (ARM) to a fixed rate. But while refinancing offers some golden opportunities, it’s also a complex process. You need to go into it with open eyes—and an experienced mortgage lender who can guide you.
Make Sure It’s Worth It Don’t forget that, just like your original mortgage, refinancing comes with additional costs. Even so-called “no-cost” refinancing usually just means those closing costs will be covered by a higher interest rate. Otherwise, you might be able to move the cost into the new loan itself, but that increases your principal. Again, an experienced mortgage lender can help you identify the true cost, put it beside your financial goals and help you decide whether refinancing is the thing for you.
Do the Math First you need to figure out how much equity you actually have in your home. In general, the value of most homes has increased in recent years. But that’s not universally the case. Talk to your mortgage lender about your specific needs and what programs you might qualify for.
Sort the Mail Ever since you first bought your home, your mailbox has likely been flooded with a steady flow of letters urging you to “take advantage of low rates” and “refinance now.” But as with any home loan, refinancing is a complex process that can’t accurately be summarized in a mailer. It’s usually best to take the rates that have caught your eye to your trusted mortgage lender so they can help you sort out the junk mail.
Rate Reality No matter what mortgage rates you see advertised, understand that rates change constantly, even hour to hour. Your mortgage refinance rate is based on multiple factors including your credit score, how much equity you have in your home, term and market rate.
RETURN TO HOMEPAGE
The mover
Potential Downsides of Downsizing Sure, downsizing seems like an easy way to save money with lower bills across the board. But as with anything, there is a cost. Will the sale of your current home bring the money you need moving forward? How many expensive repairs might your house need to get it market-ready? Will your current furniture and appliances fit in the new space or will you need to splurge on an entirely new spread? A mortgage lender can help you identify the devil in the details.
mover 101
Home Sweet Townhome If you’re trying to escape maintenance woes, townhomes and condos might seem like the ticket. But some communities come with the added expense of homeowner’s association fees, potential assessment fees and other requirements to consider. While there are many positives to townhomes and condos, you need to be fully informed before making your final decision. Your mortgage lender will help you consider all the potential costs of the “no maintenance” lifestyle.
Juggling Act As with many moves you might’ve made in the past, you’ll be trying to simultaneously sell your old house while buying a new one. It’s important to make sure you have enough equity in your current home to afford you the financial stability to weather this turbulence and have the cash on hand for a down payment on the new place. An experienced mortgage lender can help you maximize your leverage in this situation.
Maybe you’re the empty nester that no longer needs all those bedrooms and you’re just tired of the upkeep on a big house. Or maybe your family is growing and you’re looking to move from your starter home to your dream home. Downsizing or upsizing can be an option for house-savvy people who want to save money. Whether you’re considering the changing costs of living, changing ability to work remotely, or the needs of your family, moving is a great way to break the routine, without skipping a beat — or breaking the bank. While moving into the right home might simplify your daily life, the process of buying your new home should be straightforward.
“IN LENDING (OR REAL ESTATE), WHO YOU WORK WITH MATTERS!”
Pinnacle Bank offers online and mobile access, as well as in-person options to help you every step of the way! Local lenders live in the areas you likely are trying to buy. Your lender is available to you in person, but if their business hours are not convenient for you, we also offer online tools to help you get a mortgage.
CONVENIENCE
Your mortgage lender wants to know more about you than just your credit score. We get to know your needs and financial goals. We are your “life-long” trusted mortgage advisor, you are not just a number or a one-time transaction. We help provide the knowledge and resources so you are informed and feel comfortable throughout the entire home buying process.
ACCESS TO HELP
When you call, you talk to your personal mortgage lender who is responsive, reliable and will help you to get the correct loan type and prequalified quickly. You also have the option to use our online tools to help you get quotes and prequalify.
SPEED
Community banks have competitive rates! Your local mortgage lender has expertise that can help you get a specific interest rate and lock you in at the lowest rate. We are transparent with our rates and fees. We have the ability to shop around with different investors to get you the most beneficial program and lowest rate for your unique scenario!
RATES
It’s in the name. Your local mortgage lender has the expertise that can help you get the house you want and help resolve conflicts that might pop up during the approval process (local underwriting). Plus, community banks keep the money in the community, investing it back into your neighborhoods. We KNOW and care about our customers and the communities we live and work in. Working with a well-known and respected local lender gives buyers an advantage in having a more competitive offer. Local agents want to work with local lenders. Giving back to our community is important to us.
LOCAL TIES
Federal Housing Administration (FHA) Loans: 3.5% minimum down payment U.S Department of Veterans Affairs (VA) Loans: 0% down payment Rural Development Loans: 100% financing for select rural areas First-Time Homebuyer Loans Nebraska Investment Finance Authority (NIFA) Loads: Subsisted rate for first-time homebuyers
PRODUCT OFFERINGS
20% Down: no monthly private mortgage insurance Less than 20% down: upfront mortgage insurance
What loan options are available and relevant to my circumstances?
Here are the Questions You Should be Asking Your Mortgage Lender
Buying a home is one of the most exciting and important financial decisions you’ll make. The exhilarating part might be house hunting and finding your dream home, but it’s equally important to research your mortgage loan options. If you’re ready to buy a home, here are a few crucial questions you should ask your mortgage lender.
Look at all the loan options available to you. Be sure to ask the following questions:
How quickly can I close?
What information will they need for my prequalification? What is the turnaround time?
If and when should I get prequalified for a loan?
When will they pull my credit score?
What does the home-buying process look like with the lender?
Where will my closing take place?
After going over the specifics of your loan, ask your lender about their specific timeline of the home-buying-process. From prequalification to closing, asking these questions will help you know what to expect.
Communication is key to the mortgage process. Keeping an open line of communication can result in a smoother mortgage process. So, if a certain communication method works best for you, make sure to let your lender know. Here are some other important questions to ask:
How will i Communicate with my lender?
Who will be my main point of contact? Is it someone different than who I spoke to first?
Is there an online portal I can access to submit documentation and view my loan status and progress?
You’ll likely find that your mortgage lender will answer these questions and more before you even ask. However, with this list, you can have the confidence of knowing that you’re receiving relevant information that you need when you’re ready to buy a home. Working with the right mortgage lender leads to a more rewarding, and less stressful, home-buying experience.
FIND A HOME LOAN
Navigate the homebuying process with confidence, partner with one of our experienced mortgage lenders today!
Are there any additional fees or penalties, such as closing fees or prepayment penalties?
What is my estimated down payment amount?
What is the interest rate? Is it fixed-rate or adjustable? What is the estimated monthly payment?
Are there any other costs to consider such as appraisal fees, credit fees, escrow, inspection fees, recording fees and taxes?
Do I qualify for any special loan or payment programs, such as VA loans or FHA loans?
Will I have to pay mortgage insurance?
You want a loan that’s right for you, so go over these details with your mortgage lender. Going over different loan options may uncover a loan you may not have considered before that will suit you best.
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