Thanks for visiting the F&M Bank Smart Finance web site. On this page … you’ll find useful mortgage information regarding:

• Your Credit History
• Getting Pre-Approved For Your Loan
• Determining How Much Home You Can Afford
• Terms and Types of Mortgage Loans
• Closing Costs and Good Faith Estimates
• Ways To Lower Your Interest Payments
• Shaving Years Off The Term Of Your Loan
• Getting Started — Finding A Mortgage Advisor

F&M Bank has money to lend. If you are interested in buying your first home … or a new home … NOW is the time to act, before rates go up again. For helpful hints when looking for a mortgage loan … or if you are considering refinancing your current home … read on!

Don’t Apply For A Mortgage Without Knowing Your Credit History 

The better your credit rating, the better the interest rate you’ll be offered. AnnualCreditReport.com will give you a FREE credit report containing any blemishes on your credit history … with ways to resolve them. Mistakes can be made in reporting your credit. Finding this out in advance of applying for a mortgage loan gives you time to correct the error.

That’s important, because a lower interest rate will not only reduce your monthly mortgage payment … but it will save you thousands of dollars over the course of your loan.

If you think you want to buy a house six or nine months from now, start working on your credit history NOW.

• Avoid paying bills late.
• Reduce the balance you owe on credit cards as much as possible.
• Keep your average monthly balance on credit cards below 50% of the available limit.
• DO NOT close any accounts. Your length of credit counts toward a good credit score!

Get Pre-Approved For A Loan … THEN Go House Hunting 

This is a free service offered by F&M Bank. It takes just a few minutes, and lets you know exactly how much money you will be able to borrow. You do not have to borrow the full amount for which you are approved … but getting pre-approved can save you time looking at homes you can’t afford. Also, when a seller knows that a bank has pre-approved you for a loan, it may result in your offer being considered above others.

Make An Honest Assessment Of How Much Home You Can Afford

Many people are tempted to buy a home that requires a higher monthly payment than they can comfortably afford. A reputable mortgage lender will help you determine how much you can afford including taxes and insurance.

Before determining how much home you can afford, look AHEAD and anticipate future expenses that could impact your monthly budget. It’s always a SMART financial decision to factor in future expenses to avoid buying a home that will strain your budget down the road.

Understand The Terms Of Your Mortgage Loan 

As sad as it is, much of today’s mortgage crisis is because people didn’t fully understand the terms and conditions of their mortgage loan. For many, Interest Only and Adjustable Rate Loans were tempting because of the lower monthly payments, but may not be right for everyone. Before proceeding with such a loan, consider this. How will you be financially impacted IF your rate adjusts up and your monthly payment significantly increases?

For most … there are very favorable fixed mortgage loan options that provide homebuyers a predictable monthly payment over the term of the loan. F&M Bank offers many types of loans including:

• Conventional Fixed Term Loans
• FHA Loans
• VA Loans
• THDA Loans
• USDA Loans

Many of these financing options are designed to offer you the lowest possible monthly payment … and lower your interest rate, down payment amount and/or closing costs. An F&M mortgage associate can help you determine the best loan for you.

Understand The Costs Of Your Mortgage Loan 

All lenders are required to provide borrowers with a Good Faith Estimate of the closing costs associated with your mortgage. This should be provided to you or mailed to you within three days of applying for a loan. Closing costs cover a variety of mortgage loan expenses — including property appraisals, credit reports, processing, underwriting, attorney fees, title search and document preparation. These fees can vary greatly depending on the type of loan and the lender you choose. As always, it’s a SMART idea to ask your lender questions about estimated fees associated with your loan … and make sure you know approximately HOW MUCH you’ll be asked to pay in closing costs BEFORE committing to a loan.

Considerations For Lowering Your Interest Payments

15 or 30-Year Mortgage? If your goal is to lower your monthly payments, a 15-year loan might not be your best option. But if you plan to stay in your new home for an extended period of time and are interested in saving money over the term of your loan, you may want to look at all the facts. While it’s true that your monthly payments will be higher on a 15-year mortgage, your interest rate may be lower. The most important factor, however, is that you can substantially reduce the amount of interest you will pay to the bank. Insurance and tax payments will vary … however, the chart below will give you a good idea of how much you can save by opting for a 15 year loan:

Extra Payments Each Per Year 

If you can’t quite swing the higher monthly payments of a 15-year loan, you can still save money by making one or more EXTRA loan payments each year. Even making ONE extra payment a year can shave eight or nine years off the term of your loan and make a substantial dent in the amount of interest you pay. Whether you pay an extra amount each month, or one extra lump sum payment … you can save a lot of money in the long haul.

Getting Started 

Whether you are looking for a new home, or refinancing your current home, an F&M mortgage lender will work hard to get you the BEST VALUE on your mortgage. For a free check-up, call one of our helpful associates. We have lenders throughout middle Tennessee. To locate a mortgage lender near you ... or start the mortgage application process click here for someone in your area.