Questions Home Borrowers Commonly Ask Our Peoples State Bank Mortgage Team
1. How Much Can I Borrow and What Determines the Amount?
Whether you are looking to buy a home or are refinancing, Peoples State Bank and our talented team of Mortgage Lenders understand that you want clear answers on borrowing limits. Many factors will determine the amount you can borrow, such as your debt ratio when compared to your income (DTI), credit score, employment, and available savings or investment funds. When purchasing a home, it isn’t uncommon to be preapproved for a purchase price or loan amount much higher than you thought possible or may even be comfortable with. At Peoples State Bank, our Mortgage Lenders will assist you in determining the purchase price range that aligns with your budget and supports your homeownership journey.
2. What Will My Monthly Payment Be?
Understanding your monthly payment obligation is crucial to your success as a homeowner and a key part of your budgeting process. In general, your monthly payment will include principal and interest and often include escrow for taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is less than 20%. Peoples State Bank wants to help make your money work for you and keep you on track to achieve your dreams.
3. How Much Do I Need for a Down Payment?
If the prospect of a 20% down payment feels overwhelming or uncertain, consulting with our Mortgage Lenders at Peoples can provide clarity on available options. Peoples State Bank offers loan programs with minimum down payment requirements as low as 0%-5% of the purchase price. Specialty loan programs and down payment assistance are also available for first-time homebuyers, low-income buyers, and veterans. Mortgage Lenders are available to explain qualification requirements, important factors, and opportunities that may be a good fit for individual circumstances.
4. What Documents Are Required to Apply?
Peoples State Bank’s online application generally requires information you will know off the top of your head. Typical forms such as recent pay stubs, W-2s, bank statements, tax returns and other income or asset verification documents are commonly requested. Your Peoples Mortgage Lender will guide you through the documentation process and provide options to securely upload your documents or bring them to us in-person.
5. How Is My Application Evaluated?
Understanding the mortgage underwriting process is important, and at Peoples, we are committed to transparency throughout each stage of the loan. Key components of the underwriting process include reviewing income stability, employment history, credit, and debt-to-income ratios to assess the ability to make consistent payments over time. Throughout the life of your loan application, our Mortgage Lenders will explain what is needed and guide you through the process as questions arise.
6. How’s the Current Market?
Given the volatility in the current rate environment, anticipated rate shifts, and housing inventory challenges, determining the best time to purchase or refinance a home can be complex. Questions such as whether to buy now or wait, or whether to lock in a rate or hope for a decrease, are important considerations. Discussing these options with a trusted Mortgage Lender at Peoples State Bank is an essential part of making informed decisions.
7. How Does Peoples State Bank Differ from Big Banks or Online Lenders?
Peoples State Bank is rooted in the community, with a team of talented professionals, with decades of lending experience, who are dedicated to assisting those in the areas they serve. As a community bank, Peoples offers personalized service, faster decision making, and a relationship-based approach.
Applying for a mortgage at Peoples means access to competitive rates and a wide selection of loan programs comparable to those found at larger institutions, along with the support of a team focused on finding solutions tailored to each individual. The knowledgeable Mortgage Lenders at Peoples State Bank take a personal interest in every applicant, taking pride in helping families in Wisconsin and beyond secure the mortgage and banking products that best meet their needs.
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