Taunya answers those lingering questions about home loans

Thank you to everyone who has sent us a question. Here are the responses to the first six. We’ll continue to answer questions in the coming weeks! To ask a question click here.
Follow us on Facebook, or keep an eye on our County 10 and Shortgo Community Partner pages to see your question answered!
I know I’m ready to buy a house, but where do I start?
The first step would be to go through a prequalification process with a Residential Loan Officer at Central Bank & Trust to determine how much house you qualify for. The second step is to find a Real Estate Agent as they have insight into the market and will be able to show you homes within your budget.
Once you find the desired property, the Residential Loan Officer at CB&T and your Real Estate professional will work together to get you in to your new home.
Want to see a more detailed step-by-step guide? Read “10 Steps to Buying a Home” on our blog.
What’s the deal with Jumbo Loans? What are they and how do they work?
A jumbo loan is any conventional loan for residential real estate with a loan amount greater than $417,000. Typically, the interest rate is higher and the underwriting guidelines are more stringent than a conforming loan. Other than that they work just like any other fixed rate mortgage.
Do I need to wait until my Roth IRA is 5 years old to use the balance to buy a house?
You may not need to wait. Please consult your Financial Consultant or your Accountant to make sure taxes and penalties are calculated correctly.
Can you have a co-borrower that is not a spouse?
Yes, a co-borrower will have their name appear on the loan documents and their income and credit history are used to qualify for the loan. They do not need to be a spouse.
How long does it usually take to close on a home?
This truly depends on many factors. The main factor being the time it takes to receive an appraisal. A Realtor generally does a purchase contract for around forty-five days. A typical closing happens about 10 days after receipt of the appraisal.
How much of a down payment will I need?
This depends on the type of loan program you choose. Some loan programs offer 100% financing where others offer a range of 3%-20% down based on the loan program and property type. Please contact a Residential Loan Officer at Central Bank and trust to see which program fits your individual needs.
Mika Baker
Residential Loan Officer
NMLS No. 487274
Taunya Dewey
Residential Loan Officer
NMLS No. 1411669
Janice Hoxsey
Residential Loan Officer
NMLS No. 1233328
John Reynolds
Residential Loan Officer
NMLS No. 1310495
Central Bank & Trust. NMLS No. 420276.
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