Whether you're a first-time homebuyer or you're ready to purchase a home that is just the right size for your retirement, our knowledgeable mortgage professionals at Community National Bank & Trust of Texas (CNB&T) are just a phone call or an online application away. Community National even offers loans for the purchase of manufactured homes (which few bankers will do). We'll explore all your financial options together, supporting you in choosing the loan that's best for you and your future plans.
Below find information relevant to Buying versus Renting, our Top 5 Home Loan Tips, information relevant to Closing your mortgage loan, and a comparison chart showing the types of home loans available to you.
Buying vs. Renting
Did you know that buying a home could actually cost less than renting in the long run? With an improving economy and low interest rates, home ownership is a viable option for more people. Of course, it's important to consider the pros and cons:
Buyers must pay taxes and insurance on their property. Buyers are responsible for the upkeep and repairs of their home.
Buyers build equity in their home as they pay off the loan principal, creating a tangible asset. Equity is the difference between the market value of the home and the outstanding balance of the mortgage loan, and houses generally increase in value over time. Owning a home offers the buyer independence and stability, and homeowners also receive tax benefits.
- A home warranty can be included in the purchase price to help cover future repairs.
Renters must face the likelihood of a rent increase each time the lease is renewed. Landlords may restrict a renter's control over cosmetic and functional details of the dwelling. Also, renters do not receive tax savings like homeowners do, or have the advantage of building equity in a home. In fact, the renter is actually paying for the owner's house and investment. And if that owner decides to sell the property, the renter may be forced to move, or the terms of the lease agreement may change with the new owner.
Renters do not have to pay for property maintenance and repairs. And renters have the flexibility to move at the end of their lease.
Your decision to buy or rent, whether you're single or with a family, no doubt will be based on what's right for you financially, in keeping with your unique circumstances and preferences. But you never have to go at it alone - it all starts with Community National, and all the services and tools you need are right here! Our personal mortgage bankers would like nothing better than to walk you through each step of the seamless process that leads you home. Visit our Mortgage Glossary for an explanation of terms relevant to the mortgage loan industry and process.
When homeownership is your choice, our CNB&T mortgage lenders are eager to guide you to the right home loan and to support you with our expertise. Take our Top 5 Home Loan Tips into account as you prepare and plan. They're key in opening that front door to your dreams.
The amount of the purchase price you pay is called the down payment. Your down payment can range from 3.5% to 20%, depending on the type of loan we help you choose. Establish a monthly budget to set aside money for your down payment. Having that amount automatically deposited from your paycheck or bank account to a savings account could make it easier to reach your goal. Let us help you clarify your options.
When you apply for a mortgage, you need to have your financial documents in order. Having these documents assembled and ready for your CNB&T mortgage lender will speed up your loan application process. Be prepared to provide your pay stubs for the last 60 days, your bank and brokerage statements for the last 2 months, and the last 2 years' tax returns and W-2 forms.
Real-estate agents often want you to be prequalified for a loan before they begin working with you. Prequalification gives you a sense of how much you can borrow and the price range of affordable homes. The requirements for this step are fairly basic—financial information such as your income and the amount of your savings and investments. Simply apply by clicking here.
Be prompt in responding to your CNB&T mortgage lender's requests for any additional information after you have applied for a loan, and return any paperwork as soon as possible. If you wait too long, it could delay closing your loan and cause problems with the home you hope to buy. Bottom line: you could lose your dream home, along with any deposit you may have put down. So don't hesitate to call us with any questions or concerns. You always will have direct access to our mortgage experts, person-to-person whether you're in the bank or on the phone.
Lenders often pull your credit report a second time before your loan closes to see if anything has changed. So don't do anything to bring down your credit score while your loan is being processed! This means all bills must be paid on time, make no applications for new credit cards or increase credit card debt, and don't take out any new loans until your home loan is closed.
CNB&T offers a variety of home loan types, from conventional fixed rate loans to adjustable rate loans with options to purchase via an FHA, VA or USDA loan, depending on the home you are purchasing and your own life circumstances. We've developed this comparison chart for your ease in noting the differences. Yet, nothing replaces a visit with a CNB&T lending officer who can readily explain loan types as well as quickly help you consider your best option. Call us today and we'll set that appointment at your convenience.
Your hard work to save, plan and prepare for home ownership culminates with the closing process. It's no wonder most people feel excited and a little anxious. In fact, you may still have a few questions. But don't worry! The same CNB&T personal mortgage banker you've come to know and rely on will be there beside you on this special day to answer questions and explain the closing documents. You will sign many documents at closing but the three main items are:
- HUD-1 Settlement Statement: This statement itemizes the final credits and charges, for both you and the seller, based on the terms of the contract. It will also show the amount you will need to bring to closing. (You will have received a copy of the HUD-1 for your review prior to the closing.)
- Deed of Trust or Mortgage: This document is recorded with the county clerk's office and creates a lien on the property as security for repayment of your home loan.
- The Promissory Note: The mortgage promissory note serves as a legal "IOU" representing your promise to pay the lender according to the agreed terms, including dates when you must make your mortgage payments and where they must be sent.
What to bring to Closing
It's reassuring that your personal CNB&T mortgage expert will walk you through the final steps on closing day. And here's what you'll need to bring:
- A cashier's check, wire or certified check in the amount given on the Settlement Statement and made payable to the title company. The title company will not accept cash, credit cards or personal checks.
- For the notary, an unexpired drivers license or government-issued identification card with photo.
If you have uncertainties prior to closing, you can always contact your mortgage lender for guidance. Even the day of closing, we will be happy to take the time to address your questions or concerns until you are completely satisfied.