Mortgage FAQ’s

How long does the mortgage process take?
How much does it cost to close a mortgage?
When should I apply?
Where do I apply?
What is an adjustable rate mortgage (ARM)?
What is a Fixed-rate mortgage?
What is a Good Faith Estimate (GFE)?
How do I lock my interest rate?
What is an Origination Fee?
What is an escrow payment?
Do you need to be employed to buy a home?
What is a Truth-In-Lending Disclosure?

Q: How long does the mortgage process take?
A: Processing and closing a mortgage usually takes between 10 and 30 calendar days. A First South Bank Mortgage Loan Officer can give you a precise estimate based on your individual situation.

Q: How much does it cost to close a mortgage?
A: For purchases, most mortgages require a minimum down payment as a percentage of the sales price or appraised value (whichever is less). Moreover, some loans require a very low or no down payment (many First South Bank programs do not have an origination fee). Closing costs may include the following fees:

Q: When should I apply?
A: Most borrowers apply once they have selected a property. However, you can get pre-qualified by First South Bank so that you will already know how much house you can afford before you start shopping.

Q: Where do I apply?
A: If you want to apply for a First South Bank mortgage, please contact one of our Mortgage Loan Officers. They will answer any questions you have and schedule a personal appointment at a time and location convenient for you.

Q: What is an adjustable rate mortgage (ARM)?
A: A type of mortgage in which the interest rate adjusts periodically according to a predetermined index and margin. The adjustment results in the mortgage payment either increasing or decreasing. A 1-year ARM, for example, will have an initial interest rate for 1 year and then adjust on the second year, and continue to adjust annually over the life of the loan. With an ARM loan, you typically get a lower starting rate in exchange for taking a risk that rates may rise in the future. There is also a cap on how much the interest rate can go up or down.

Q: What is a Fixed-rate mortgage?
A: A Fixed-rate mortgage is a loan that has the interest rate and payment set for the life of the loan. The benefit is that you always know what your principal and interest costs are, which takes out the guesswork when planning.

Q: What is a Good Faith Estimate (GFE)?
A: A Good Faith Estimate (GFE) is an estimate from First South Bank that outlines the costs you will incur during the mortgage process. This is provided to you when you apply for your loan.

Q: How do I lock my interest rate?
A: During the application process, select a rate for your specific loan, or call us anytime during the process to lock your loan.

Q: What is an Origination Fee?
A: A fee or charge for the work involved in the evaluation, preparation, and submission of a proposed mortgage loan. Many of First South Bank’s programs do not have an origination fee.

Q: What is an escrow payment?
A: The portion of the mortgagor’s monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance and other items as they become due. Also known as impounds or reserves in some states.

Q: Do you need to be employed to buy a home?
A: No. First South Bank has programs available for qualified borrowers.

Q: What is a Truth-In-Lending Disclosure?
A: The disclosure is designed to give you information about the costs of your loan so that you may compare these costs with those of other loan programs or lenders.

For more information on Home Mortgage Options, click here to send us your questions, or contact us at 1-888-993-8754.