Frequently Asked Questions- January
Here are our answers to the 3 questions we've been asked most frequently this month.
I am buying a home, do I need to make a down payment and if so, how much?
Depending on what program(s) you qualify for a down payment* may not be required. By putting a down payment* on a home you lower your monthly payment and improve your initial equity.
If you are purchasing a home, a good rule to remember is the “20% rule”. A 20% down payment* on a home will prevent you from having to pay private mortgage insurance, resulting in a lower monthly payment.
In addition, there are programs that you can use depending on your eligibility status. For example, if you are a veteran, you may be eligible to receive home loans directly from the VA or a VA-backed home loan. According to the VA “nearly 90% of all VA-backed home loans are made without a down payment” *.
If you are looking for assistance in the home-buying process one of the best ways to do so is with an FHA (Federal Housing Administration) loan. FHA loans can be secured through the U.S Department of Housing and Urban Development (HUD) and can help ensure; lower down payments*, lower closing costs, and an easier credit qualification process. Depending on your credit the down payment on an FHA loan can be as little as 3.5% of the home’s purchase price.
Conventional loans, which are loans that are not insured or guaranteed by the government, often carry a down payment* requirement of 3%-5%.
I submitted an application for a loan. How long will it take for me to be approved?
At the State Bank of Bement, we pride ourselves on being local lenders making local decisions. While we process loans as fast as possible the typical real estate loan approval process takes between half a day and one week. Consumer and Commercial loans take between 1-2 weeks depending on financial factors. Loan approvals are subject to applicant qualification.
Can I change my PIN number?
Yes! While your PIN number is tied to your debit card we can change your PIN number anytime. All you need to do is either come in to a branch and your new PIN is ready to go. If you can’t make it to a State Bank of Bement location you can also change your PIN over the phone. All we have to do is confirm your information and we can initiate the process remotely.
*Down payment does not include closing costs
