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We offer a wide variety of first and second home loans.
For more information, contact
a Peoples State Bank Certified Mortgage Planner or Business Development Officer at one of our convenient locations
near you.
What is a Home Loan?
A home loan is money given to you by a financial institution
to buy a house. It requires a contractual agreement that you’ll
pay back the loan with interest in specified monthly payments
over a stated period of time. You can choose your payment term-the
longer the term, the lower the monthly payment, but you’ll
pay more in total interest.
How much home can I afford?
Generally, lenders want your monthly payment, including taxes
and insurance, to be 25-30% of your gross monthly income. Your
loan officer can help you determine what price of a home to shop
for by reviewing your income, debts and credit.
Click here for Financial Calculators.
How do I apply for a home loan?
When you have a home, contact one of our Business Development
Officers who will assist you in filling out a loan application.
The following pieces of information are needed for your loan application:
- Photo ID and proof of Social Security number
- Residence addresses for past two years
- Names and addresses of each employer for past two years
- W-2’s and last two pay stubs
- Names, addresses, account numbers, and balances for all checking
and savings accounts
- Names, addresses, account numbers, balances and monthly payments
on all current loans.
- If self-employed, the last two years’ tax returns and
year-to-date Profit & Loss Statement prepared by an accountant
- Loan information and addresses on real estate owned
What happens after I apply for a home loan?
After you have applied for a loan, the information you have
supplied will be verified and a credit report on you will be completed.
An appraisal will be performed on the home you are purchasing
to determine its market value. When all the information is collected,
it will be reviewed for loan approval.
What should I know about closing costs?
Closing costs are up-front fees you pay the lender when taking
out a home loan. These may include points. Points are a one-time
charge you pay the lender to buy a lower interest rate than the
current one. Each point equals 1% of the amount you are borrowing
(i.e., if you borrow $90,000, one point costs you $900). Be sure
to ask how many points you’ll be charged because you must
pay them at closing.
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