Getting a Mortgage

What Every Young Professional Should Know (Part I)

September 1, 2010

By Chris Seeley, Assistant Vice President and Mortgage Loan Officer
Premier Bank & Trust

Chris Seeley has a message for his fellow young professionals: There’s never been a better time to be a first-time homebuyer. In an article titled, “What Every Young Professional should know before Getting a Mortgage,” the Assistant Vice President and Mortgage Loan Officer for Premier Bank & Trust and ystark! member explains why now is the perfect time to buy, how bankers and brokers differ, what goes into a good faith estimate and why he’s confident you’ll end up with a house you can afford.

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This is a great time to be young! Mortgage rates are at an all-time low. The cost of a good home in Stark County has fallen significantly in the last year. And, as if that's not enough, Ohio State and Federal home loan programs are available to help first-time homebuyers get an affordable mortgage. If you are like many young professionals, you are probably thinking about becoming a homeowner. Here are some things you should know before taking the plunge.

Now is the Time to Buy.
The going rate for a 30-year fixed mortgage at Premier Bank & Trust these days is in the lower 4% range. While that probably sounds like a good rate, it’s difficult for anyone under age 40 to appreciate exactly how good—and how rare—it really is. Why? Because it’s the lowest rate anyone has seen since Freddie Mac began tracking rates in 1971. The last time home loan rates were this low was during the 1950s, when most mortgages lasted 20 or 25 years. In other words, today’s rates offer the most attractive opportunity in decades for those who qualify to purchase or refinance a home.

Our Vice President of the Mortgage and Consumer Loan Division, Ernest Hummer, puts it this way: “If you’re sitting there thinking you’ll wait for a better time, consider this: The rates aren’t going to get much lower. Prices of homes aren’t going to get much lower. Mortgage rates are the lowest I’ve seen in 40 years. And many of the foreclosed properties in our market have been purchased, indicating that this area may have bottomed out.” As you can see, these factors combined with a wide variety of financing options and flexibility available from lenders today, make this a great time to be a buyer.

Where to Find a Mortgage: Banker or Broker?
Today, would-be-homebuyers turn to either a mortgage broker or a mortgage loan officer for their home buying needs. There are a few differences between the two. With a bank, you have an ongoing relationship. A mortgage is yet another service the bank wants to provide its customers. A broker, on the other hand, is a freelance agent who wants to sell a mortgage and move on.

At Premier Bank & Trust, we are in a better position to work with our clients. We’re competitive on pricing and have two mortgage experts processing our loans with more than 30 years of experience between them. Ernest Hummer alone has nearly 40 years of mortgage lending and banking experience. And because banks and credit unions are so heavily regulated, consumers can be confident that there’s not going to be anything buried in the fine print.

At Premier, we can keep the loan in our portfolio, which gives us some options. If the appraisal comes in short, we can do a second home equity loan or provide you with other financing options. We have a bit more flexibility because of who we are.

How Much is that Mortgage Really Going to Cost?
The real cost of a home loan can be difficult to determine. It’s not just the cost of the home, the amount of your down payment, the rate you get or the points you pay—it’s all those things and much more. This is why it’s important to shop around and ask for a good faith estimate of closing costs before spending any money.

With new rules and regulations handed down from the federal government, you can get a good faith estimate of what your closing costs will be at absolutely no cost to you. However, you’ll be asked to give the financial institution permission to pull your credit score which will determine your rate. You’ll also have to disclose your personal financial information and sign an application in order for the bank to put together an accurate estimate.

... Want more? Continue reading Part II in this crucial article for house-seeking YPs!

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ABOUT THE YP EXPERT
With nearly a decade of experience in the banking industry, Chris Seeley is the Assistant Vice President of Mortgage Banking for Premier Bank & Trust. He is highly involved with ystark! as incoming Vice Chairman for 2011, a member of the Executive Committee and Ambassador Committee Chairman. E-mail him at chris.seeley@mypbandtbank.com.

As Vice President of the Mortgage and Consumer Loan Division for Premier Bank & Trust, Ernest Hummer has more than 38 years of mortgage lending and banking experience. He manages the development and implementation of the policies and procedures for consumer lending, including residential mortgages. E-mail him at ernest.hummer@mypbandtbank.com.

INFORMATION FROM OUR PARTNER
We provide financial services to small businesses and consumers through four full-service banking locations in Stark and Wayne Counties. For more information, please visit us online at www.mypremierbankandtrust.com.

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