Whether you are a first time home-buyer looking for a mortgage, interested in building a new home, or a savvy investor purchasing a prime piece of real estate, we have the right loan for you. CNB’s lending staff has been serving the greater Medina County area since 1981. Our experienced lenders can walk you through the process one-step at a time. Contact one of our lenders today!
Taking a mortgage can be an overwhelming prospect. With the right team in place to help guide you through the process, CNB can help make that dream a reality. We have experience in helping our neighbors in Medina, Atascosa, Bexar and the surrounding counties find the mortgage that best fits their needs. Contact one of our mortgage lenders for more information or Apply here today. MLO #446447.
I am buying my first home. What should I do first?
Make sure that you know your credit score. Having a solid understanding of your credit score is important as you begin the home buying process. See Credit Score Tips for more information.
How much house can I afford?
Evaluate your budget and understand the costs associated with home purchase and ownership.
A good rule of thumb when shopping for your future home is that you should be able to afford a house that is 2.5x your annual household income. Utilize a budget tool such as CNB’s $mart App® or our Mortgage Loan Calculator to determine what you can afford. Be aware that there are costs associated with the buying process itself. These can include loan origination, down payment, closing costs, and realtor fees. Be sure to take into consideration additional expenses associated with home ownership such as insurance, utilities, taxes and home repairs.
What is an appraisal and who completes it?
To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal, they also specify the appraiser’s qualifications and credentials. We require licensed Community National Bank approved appraisers.
After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.
If your home is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value.
The appraiser uses judgment and experience to reconcile these differences and then assigns a final appraised value. The comparable sales approach is the most important valuation method in the appraisal because a property is worth only what a buyer is willing to pay and a seller is willing to accept.
It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction there is. It represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value be very different.
What types of things will an underwriter look for when they review the appraisal?
In addition to verifying that your home’s value supports your loan request, we’ll also verify that your home is marketable. We’ll want to be confident that if your home must be sold, it will be as easy to market as other homes in the area.
We’ll review the features and the value of your home and compare them to the features of other homes. If the features of your home are significantly different, or the value is substantially more than other homes in the neighborhood, it could affect the market acceptance of your home if you decide to sell.
We’ll also review the market statistics about your neighborhood. We’ll look at the time on the market for homes that have sold recently and verify that values are steady or increasing.
Will I get a copy of the appraisal?
As soon as we receive and review your appraisal, we will forward a copy to you.
I've heard that some lenders require flood insurance on properties. Will you?
Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure that you will be protected from financial losses caused by flooding.
We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner’s insurance doesn’t protect you against damages from flooding.
How long does it take for the property appraisal to be completed?
Licensed appraisers who are familiar with home values in your area perform appraisals. We order the appraisal as soon as the Appraisal, Credit and Flood fee is paid. Generally, it takes 14 days or less before the written report is sent to us. We follow up with the appraiser to insure that it is completed as soon as possible. If you are refinancing, and an interior inspection of the home is necessary, the appraiser should contact you to schedule a viewing appointment. If you don’t hear from the appraiser within seven days of the order date, please inform your Mortgage Representative. If you are purchasing a new home, the appraiser will contact the real estate agent, if you are using one, or the seller to schedule an appointment to view the home.
How are interest rates determined?
Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. Our nation’s central bank, the Federal Reserve, implements policies designed to keep inflation and interest rates relatively low and stable.
What is a Home Equity Loan?
A Home Equity Loan is a fixed rate mortgage in which your home serves as collateral. With a home equity loan you will be approved for a specific amount, that will be disbursed to you in its entirety. You will make equal monthly payments that will be amortized over 10 or 15 years.
Can I apply for a loan before I find a property to purchase?
No, when applying for a mortgage without a property being chosen, it is considered a pre-approval, which is currently not offered online. Please contact a Mortgage Representative who can assist you in applying for a pre-approval.
What happens at the loan closing?
The closing will take place at the office of a title company or attorney in the area who will act as our agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.
During the closing you will be reviewing and signing several loan papers. The closing agent or attorney conducting the closing should be able to answer any questions you have.
Just to make sure there are no surprises at closing, the Attorney will contact you before closing to review your final fees, loan amount, first payment date, etc.
Can I get advanced copies of the documents I will be signing at closing?
Unless there are special circumstances, the documents are usually prepared one to two days before your closing. If you would like copies of the completed documents to be sent to you before the closing, please contact your Mortgage Representative.