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Herring Bank Online > Mortgages
Herring Bank's experience in mortgage lending means that we can use our
expertise to help you find the right loan program. Get in touch with our Mortgage Loan Officers for a coordinated approach to your home investment.
Amarillo
Melissa Rodriguez
2100 Civic Circle, Amarillo, TX
(806) 354-4102
Vernon
Tissha Taylor
1900 Pease Street, Vernon, TX
(940) 552-5444
Online Application via our partner, Secure-Loancenter.com
[Disclosure]
| Application Check List |
To complete your loan request, the following must be provided:
1.Application
Complete Application On-Line
2.Income Verification
a. Copies of most recent pay stubs (totaling for one month)
b. Copies of last 2 years W-2 forms
c. Complete copy of last 2 years Tax Returns
(Please Sign, need original Signature)
3.Self Employed Borrowers
a. Last 2 years Tax Returns including Partnership, Corporate, etc...
b. Year to Date Profit & Loss Statement
c. Year to Date Balance Sheet
4.Child Support Income (if applicable)
a. Copy of Divorce Decree
b. Copy of 3 month payment history of receiving child support
5.Verification of Cash Assets
a. Copy of 2 months most current banks statements on all Accounts
b. Copy of most recent quarterly statements on Savings Accounts
c. Copy of Retirement Account(s), 401(k), Investment Stocks, etc...
6.Miscellaneous
a. Copy of Driver's License and Social Security Card
b. Name and Address of current Landlord or current Mortgage Company
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| Conventional Financing |
Conventional loans are the most common type of long term mortgage financing. The conforming maximum conventional loan limit at this time is $333,700.00 for a single-family residence.
Generally, a 5% down payment is considered to be acceptable. Under certain First Time Homebuyer Programs, a down payment as small as 3% is acceptable.
A conventional loan with minimal down payment will require Private Mortgage Insurance (PMI).
The PMI premium may be financed for the life of the loan as part of the loan amount, or it may be paid annually, or it may be paid monthly. All types of PMI require that the premium be included in the PITI total.
PMI is dropped after the loan amortizes to 79% of the original loan amount.
Mortgage Terminology
PITI is "Principal/Interest/Taxes/Insurance". When "PITI" is used in a calculation, it is the total of the proposed mortgage payment... the Principal and Interest payment plus the monthly taxes and monthly insurance calculation.
Gross Monthly Income is your total monthly income before any income tax, social security, insurance, Medicare, etc. is deducted.
Other Ongoing Monthly Expenses is the total of your other monthly bills to which you are committed on a revolving, installment or term basis (Car payment, Charge Cards, Bank Notes, Child Support, Alimony, etc.).
Qualifying Guidelines
- PITI divided by Gross Monthly Income = 29% (Ideally)
- PITI plus Other ongoing monthly expenses divided by Gross Monthly Income = 41% ( Ideally)
Specialized computer underwriting allows for loan approval in excess of these ratios under certain circumstances. An example would be:
- Exceptional Credit Scores
- Larger than normal down payment
Large cash reserves after the cost of closing is considered
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| Fixed Financing |
Feel secure with the knowledge that your principal and interest payment will remain the same throughout the life of your loan. Fixed-rate loans may be advantageous for borrowers who plan to stay in their home for a long period, are on a fixed income, or borrow money during a low interest-rate environment.
You may choose a fixed-rate term from 10 to 30 years to best match your individual financing needs. The conforming loan maximum for Conventional loans is $333,700.00 for a single-family home.
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| Jumbo Financing |
Jumbo loans are conventional loans in excess of $400,000.00. Several programs are available up to a maximum of $3,000,000.00.
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