Balloon Mortgages 

With a Balloon Loan the loan amount is amortized for a longer period than the term of the loan, allowing for a lower monthly payment.  At the end of the initial term of the loan, a final payment of the remaining principal balance plus interest is due, which is known as the balloon payment. For example, with a 5 year balloon loan payments are calculated on a 20 year term, allowing for a lower monthly payment.  At the end of 5 years the principal balance is due for renewal or payoff. 

Fixed Rate Mortgages 

If you are interested in the stability of a fixed mortgage payment and you plan to stay in your home for several years OR you expect interest rates to rise this could be the program to fit your needs.  This program offers a fixed rate for up to a 30 year term. 

Illinois Housing Development Authority Home Loan Program (IHDA) 

IHDA loans, for first time homebuyers, offers a 30 year fixed rate, normally at below current market rates and also has low down payment requirements.  IHDA loans are for the purchase of owner occupied residential real estate.  Income and purchase price limits, along with credit qualifications do apply.  Speak to one of our loan officers for further information.  For further information, go to www.ihda.org. 

GI Loans for Heroes  

We are now offering the “G-I Loans for Heroes”, which is a new loan program for service men and women, to assist with the purchase of owner occupied residential real estate.  This program features low down payment requirements, a first mortgage for 80% of the purchase price, a second mortgage for 20% of the purchase price, and a grant up to $2,500 to pay for closing costs.  Income and purchase price limits, along with credit qualifications do apply.  Stop by any of our five locations and speak to a loan officer for further information.  For further information, please go to www.ihda.org. 

Down Payment Plus Program  

This program provides down payment and closing cost assistance for qualified borrowers, to assist with the purchase of a home.  Income limits apply.  More specific information can be found at:  www.ilfi.org/downpayment_plus/consumer_center.htm 

Home Equity Loans and Home Equity Lines of Credit 

You own your home, and you have put a lot of money in it. Now is a good time to let your home help you with a Shelby County State Bank Home Equity loan. 

Home Equity loans can be used for debt consolidation, home improvements, college tuition, or just about anything you want and many times have a lower interest rate than is offered on credit cards, personal loans, or other type of loans you may have. 

 

Home Equity loans are normally for a fixed amount, with a fixed term and a fixed payment.  

 

Home Equity Calculator Example 

Your Home Appraised Value          $  80,000.00 

Multiply by 80%                                                   x 0.80     

                                                                 $  64,000.00   

Less current first mortgage balance       $  40,000.00   

                                                               = $ 24,000.00  The amount that may be available for a Home Equity Installment Loan or Home Equity Line of Credit Loan. 

 

Even if you don’t have substantial equity in your home, at Shelby County State Bank, we will work with you to meet your needs.  Call a Shelby County State Bank loan officer to discuss your options. 

 

Home Equity Line of Credit (HELOC) 

A Home Equity Line of Credit (HELOC) allows you to draw on funds as you need them, so you are not paying interest on credit not being used.  A Home Equity Line of Credit provides you with a reserve of funds for immediate or future expenses.  Payments may be set up as interest only or principal and interest. Contact a tax advisor regarding tax advantages. 

 

Even if you don’t have substantial equity in your home, at Shelby County State Bank, we will work with you to meet your needs.  Call a Shelby County State Bank loan officer to discuss your options. 

Installment Loans 

Our installment loans are a quick and affordable borrowing solution.  An installment loan gives you the simplicity of a fixed rate and term with a set monthly payment.  Whether it’s a secured or unsecured loan, let us pre-approve you for your next auto purchase, home improvement project, vacation, or more. 

 

Personal Financial Statement 

Consumer Loan Application 

Demand Reserve 

The Demand Reserve account gives you the flexibility of a loan with no set maturity date.  This account is an open-end line of credit attached to your checking account. 

Mortgage Loan Process  

The mortgage loan process can be somewhat confusing, especially to a first time homebuyer.  To help you understand the process, we have outlined below the steps involved in the mortgage loan approval process. 

 

Loan Application 

The first step in the mortgage loan process, involves the application; meeting with a Shelby County State Bank loan officer to discuss your particular needs.  There is certain information that we will need to know, therefore we ask you to complete a residential real estate loan application that details your employment history, income, debts, assets and credit situation, among other things. (For your convenience, an application can be downloaded from our website.)  

 

Based on the information you provide we can then pre-qualify you for a mortgage.  Pre-qualified means that you have been pre-approved, (usually subject to specific conditions), for a specific dollar amount, which can give you more bargaining power and provide you with a better idea of what you can afford.  Although, if you have already signed a contract for the purchase of a property, be sure to bring a copy with you. 

 

Verification/Processing the Application 

Once the application has been completed, all of the information provided is then verified.  This verification process is done in writing, either by documentation, such as pay stubs, tax returns, bank statements, provided by the customer or by the bank sending verification forms to employers, banks, etc.  Therefore, it is important that the application be as accurate and complete as possible, allowing the bank to complete this step quickly and easily. 

 

As part of processing your loan application, a credit report and an appraisal of the property that you are purchasing will be requested.  The appraisal gives the bank the value of the home that you are purchasing. (You may request a free copy of your credit report at www.annualcreditreport.com.) 

 

Underwriting & Approval 

As soon as all the information has been received, the loan will be reviewed (underwritten) for final approval.  There is always the possibility that additional information may be required.  If so, the loan officer will contact you and let you know of any additional information that may be needed.  It is important that you provide this information as soon as possible so that we can give you final approval and move on to the next phase of the process.  Once all of the requested information has been received and a credit decision has been made, the customer will be notified of the decision.  

 

Closing  

Once the loan has been approved, all parties involved will need to be available for closing.  A specific date, time and location will be arranged with all parties needing to attend the closing.  Many people arrange to have their attorney on hand to address any last-minute issues that may come up. 

At the closing, you will pay the down payment and closing costs and will also sign a series of documents required by the bank to complete the loan.  If not already provided, proof of hazard insurance coverage may be requested.  Copies of these documents and a copy of the appraisal should be provided you at closing. (More information regarding closing costs can be found at http://www.hud.gov/offices/hsg/sfh/res/sfhrestc.cfm.)  

 

Mortgage Documentation 

Listed below are items a loan officer may ask you to provide as necessary verification of the information you provide on your loan application.  Bringing these items at the same time you are applying for the loan is the most time saving for all involved in the loan process; however, most of the documents required can either be faxed or mailed to the bank. 

 

For verifying income, the following documentation may be requested: 

• Pay stubs 

• W-2’s 

• Federal Tax returns (for self employed persons* or to verify rental income, commissions, interest or other sources of income) 

• Awards letter regarding Social Security  

• Court records/printout for alimony and/or child support 

(Child support or alimony income can be used if you received it for the past 12 months and it will continue for at least three years.  However, alimony, child support or separate maintenance income need not be included if it is not to be considered as income available to repay the loan.) 

Without these documents, the bank would send a written Verification of Employment to current and past employers. 

 

*Self-employed persons may also need to provide additional documentation, such as partnership and/or corporate tax returns with all schedules; year to date business profit and loss statements; current balance sheet and income statement. 

 

Depending upon the source of funds for down payment and closing costs, the following documentation may be requested: 

• Bank statements for the last 3 months for all bank accounts (including savings, checking and investment accounts). 

• If a current residence is being sold, and the funds from the sale are being used for a down payment on a new home, a copy of the HUD settlement statement would be needed. 

• If funds from the sale of asset(s) are being used, then proof of ownership, proof of sale and proof of funds transfer would be required. 

• If any funds for the down payment and closing costs are from a gift, a gift letter would be required, along with proof of receipt of the funds.  The bank will provide you with a gift letter for the donor to complete. 

 

Other information that may be requested, include such items as: 

• Purchase Agreement 

• Divorce Decrees 

• Credit Explanations