Personal Overview > Loans > Mortgages > FAQs

What information do I need to apply for a home loan?

1. Last years W2 forms.
2. One month’s current pay stubs.
3. A list of current “liquid” assets—for example balances in checking and savings accounts.
4. A list of current debts and monthly payments on each, such as credit cards, car loan and student loans.
5. If you are self-employed, please provide federal tax returns from the last two years.

What are the costs involved in getting a home loan?

Down Payment—Money that’s paid up front on the home purchase. It will decrease the amount of the money you need to borrow. You can put down as little as 5%, although many customers put down between 10% and 20%.

Private Mortgage Insurance (PMI)—This is insurance provided by a private company that protects the bank against loss in case a borrower defaults on the mortgage loan. At Lorain National, we do not require you to pay for PMI if you have a down payment of 15% or more.

Closing Costs-- These include fixed costs (application fee, documentation fee, escrow fee) and variable costs (fees for appraisal, credit report, recording fees).

Title Insurance—an insurance policy that protects the buyer from financial loses resulting from problems or defects with the property’s title.

Points—This is a one-time charge that you can choose to pay in order to lower the interest rate on your loan. Each point is equal to one percent of your loan amount. For example, if your loan amount is $100,000, then one point is equal to $1,000.  You can select a zero point loan or pay points to further lower your rate.

What if rates change before I close on my home loan?

At Lorain National Bank you automatically receive a 60-day rate lock commitment.