Mortgage Loans

I Can Help Make Your Home Ownership Dreams Come True...

One Step At A Time.

Purchasing a home can be one of the most satisfying and exciting experiences of a lifetime. Whether you're a first-time home buyer, moving up to a larger home or refinancing your current residence, you'll find First National Bank is here to help you every step of the way.

Purchasing a home can also be stressful. Before you go house hunting, your FIRST call should be to First National Bank Mortgage Office. You'll find "Friends" who treat you like their most important customer.

We'll Guide You Every Step Of The Way

We have the expertise - and will take the time - to ease you through the home loan process step by step ... from the day you apply to the moment you're holding the keys to your new home. In five basic steps, here's what you can expect:

STEP 1: Meet With A Lending Officer

A First National Bank lending officer will meet with you to explain everything to expect in buying a home. We'll meet at a time and location that's convenient for you and answer many of your questions. To get the greatest benefit from this initial meeting, please bring the following:

Income/Expenses - Accurate list of monthly/annual household income and expenses.
Bank Accounts - Savings, checking and CD account balances.
Loan Information - Balances due to banks, financial companies and others.
Credit Cards - List all balances and bring copies of your most current statement(s).
Equity In Your Home - If you own your residence, equity is the difference between what your house is worth and what you owe. Copies of the most recent property tax assessment and monthly mortgage statement would be helpful.
Tax Returns - Your most recent Federal Income Tax return for past two years and recent pay stub (original).

STEP 2: Pre-Qualify For Your Loan Then Go House Hunting

An important step in purchasing a home is determining what you can afford to spend on monthly mortgage payments. That amount depends on your employment status, current debt, family size and other factors. We will quickly evaluate your financial situation and give you an on-the-spot estimate of what you can afford. Then, you'll be ready to shop for only the homes that are in your price range ... saving you time, effort and money.

STEP 3: Apply For A Loan

During the initial meeting with your loan officer, you'll receive a loan application that requests additional financial, employment and personal information. The more complete you are in supplying this information, the faster we'll be able to provide your loan approval status.

Your loan officer will ensure you apply for the right type of loan by explaining your options, such as fixed-rate versus an adjustable-rate mortgage. We'll also help you explore special loan programs such as VA, RD, FHA and THDA (see full descriptions under the "Types of Loans" section, further down this page.) We'll work closely with you to customize a mortgage that's right for you!

STEP 4: Consider All The Costs

Once you've decided on the home you desire, you need to be fully aware of expenses beyond your monthly mortgage such as property taxes, insurance and utilities. For estimates of these expenses, ask the present owners or your real estate agent. You can verify property taxes through your local tax assessor's office. Also, contact your insurance agent to obtain an estimate for homeowner's coverage. Pass this information to your loan officer for review before you sign a real estate contract.

STEP 5: The Loan Closing

The final stage in the loan process is the Loan Closing. It's the date on which the title for the property passes from the seller to the buyer ... the day you take legal ownership of your new home. During closing, all details are finalized, checks are exchanged, paperwork is completed, fees are paid and you receive the deed and keys to your property. The meeting usually is conducted by a representative or agent for the bank and lasts 30 minutes to an hour.

Before closing day, we'll make sure you fully understand the entire process - and avoid last minute surprises. Closing costs vary depending on financing, but they generally include items such as: down payment, appraisal fees, prorated property taxes and insurance, attorney's fees and lender's fees/expenses.

Types of Loans

There's a range of mortgage choices available for home loan financing. Some offer payments that are set for the life of the mortgage, while others feature smaller initial payments that will fluctuate with interest rate changes. Your choice in financing will depend on your unique set of circumstances - your financial lifestyle. To help you make an informed decision, we'll make sure you understand the best option for your current situation.

Fixed Versus Adjustable Rate

Fix-Rate Mortgage - This type of financing features an interest rate that is set for the life of the loan, offering predictable monthly payments. This loan usually has a higher interest rate than an adjustable-rate mortgage.
Adjustable-Rate Mortgage (ARM) - ARMs normally start with an interest rate that's lower than fixed-rate mortgages. But the interest rate (and your monthly loan payment) will move up or down according to market conditions. Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.

Special Home Loan Financing

First National Bank offers several government-sponsored home ownership incentive programs. These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. Here are a few examples:

Federal Housing Association (FHA) loans - These loans offer the benefit of a low, three-to-five-percent down payment, and sometimes, closing costs can be included into the loan amount to further reduce up-front costs.
Veterans Affairs (VA) loans - VA loans make 100 percent financing available to qualified military veterans with at least six months of active duty.
Tennessee Housing Development Association (THDA) loans - First-time buyers or those who have not owned a home within at least three years, may qualify for these lower-down payment loans. (Financing is subject to the availability of state funding).
USDA Rural Development (RD) loans - 100% financing to qualified borrowers

Other Home Financing Options

Construction Loans

If you're building a home, a construction loan can be an ideal source of cash throughout the process. Interest rates are competitive and closing costs are minimal, and you won't pay any interest until the funds are drawn or used, giving you a convenient and affordable way to meet ongoing building expenses. Plus, upon completion, we can easily and smoothly convert your construction loan into permanent financing.

Refinance...Save!

When interest rates drop by at least 1.5 percent below your existing loan rate, you may be able to save money by refinancing your loan. Contact First National Bank to help you determine if refinancing can help you:

Reduce Your Interest Rate - A lower interest rate can mean lower payments.
Reduce Your Mortgage Term...And Pay Off The Loan Faster - Refinancing to a shorter term mortgage can save you thousands of dollars in interest charges over the life of the loan.
Convert Your Equity Into Instant Cash - Borrowing against the equity in your home can be a low-cost and often tax deductible way to get extra money. Plus, mortgage interest rates are usually lower than other types of consumer loans.

May We Help You?

Let us help make your dreams of home ownership come true. Contact any First National Bank office or call First National Bank Mortgage today.

Contact Cecelia for answers to your questions!