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Frequently Asked Questions About Mortgages

What are the different types of home loans?

The most common types of home mortgages are Conventional, FHA, USDA and VA. All four loan programs have slightly different qualification requirements based largely on credit, income and down payment requirements.

How much down payment is needed to purchase a home?

The old thinking that you need 20% down to purchase a home is just not the case anymore. USDA and VA loans offer 100% financing of the purchase price of the home. FHA and Conventional loans require a 3.5% and 5% down payment respectively.

How much house can I afford/qualify for?

The mortgage amount that you qualify for/afford depends on a whole range of factors including income, debt-to-income ratio, your credit score, down payment, etc. Because each person’s situation is different, it is so important to work directly with a mortgage specialist. Our mortgage experts are local in Arkansas and Louisiana and can process, underwrite, and approve your loan in-house.

If you would like to get an “estimate” of how much your monthly mortgage payment would be given different mortgage amounts, down payments, interest rates, and mortgage terms check out our mortgage calculator.

How do I get prequalified for a mortgage?

The quickest and easiest way to obtain pre-qualification with Century Next Bank is to fill out and submit our online application.  Once you submit your application, one of our mortgage lenders will receive instant notification of your submission and will begin working to pre-qualify you.

What information will I need to provide on a mortgage application?

Most of the information that is needed to fill out an application should be common knowledge to you. Some of the basic information includes your name, birthdate, Social Security Number, employment information and current address. Information regarding your checking or savings accounts could possibly require some easy research.

When should I consider refinancing my current mortgage loan?

When considering a refinance, you must look at the big picture of your financial situation to decide if it’s something you should do. You might want to consider refinancing if you can lower your current interest rate or shorten the term on your loan. You might also consider a refinance if you want to consolidate debt or pull equity out of your home for improvements to the property.

 

Regardless of your situation, contact one of our mortgage experts today. They can help guide you and answer any questions you may have regarding the mortgage process. Remember, purchasing a home is one of the largest financial investments you will make in your life. Let us help you make the right decision.