First National Bank of Oklahoma

First National Bank of Oklahoma would like to welcome you to the Home Loan Department.

This department offers many types of products for the purchase or construction for new residences, second homes or investment properties. Also, we offer products for the refinance of current homes for home improvements, debt consolidation or cash-out of equity.

A home is the most valuable asset you can have and the purchasing and refinancing process can be a frustrating experience. We at First National Bank of Oklahoma want to ensure you this process does not need to be frustrating with the assistance of our home loan specialist. We can offer fast and easy pre-approvals before you begin shopping for that new purchase or considering that refinance by contacting our home loan specialist.

Products

There are many different types of home loan products available to fit your needs. Loan terms can range from 10 to 30 years with either fixed or adjustable rates. We offer competitive rate and fees with a no fee lock-in rate protection up to 70 days. Extended locks are available with lock-in fee.

Different products available consist of:

Conventional Loans – Fixed interest rate for term of loan.
FasTrak Home Loans
- 15 Year In-House loans
- Quick local approvals
- FasTrak Closings in 2-4 weeks approvals
- Fixed interest rates
- Up to 80% loan to value for qualified borrowers
- No Escrows
- Purchases or Cashout Refinances
- Construction to Permanent single closings
- Owner Occupied Dwellings Only
- Available in the following Oklahoma counties: Kay, Osage, Noble, Grant, Garfield

5 or 7 Year Balloon Loans – Fixed interest rates for first 5 or 7 years then balance re-amortized for remaining term of loan at current market rates.
Stated Income/No Ratio Loans – Products that are based on minimum credit score and income stated on application for qualification.
Interest Only Loans– Products with interest only payments for first three to ten years of loan.
No Income No Asset Loans – Product that is based on minimum credit score and no documentation of income or assets required for qualification.
Adjustable Rate Products – Products that may have interest rate adjustments every 6 months, 12 months or after first 3, 5, 7 or 10 years. Adjustments may be protected with interest rate caps of 1% to 2% per adjustment period and 5% to 6% for lifetime rate adjustment. Typically new rates are determined by margin varying from 2.25% to 2.75% plus index based on Treasury bill or libor index. Some adjustable rate programs may offer a conversion to fixed rates after the initial 3, 5, 7 or 10 year fixed term for a $250.00 conversion fee.
Low or No Down Payment Products – Products that may be based on a minimum credit score that allows financing of 97% to 100% of sales price plus up to 3% of closing costs. These products may only require a borrower to contribute $500.00 of their own funds to transaction.

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Questions & Answers

Please click on the questions below to view the answers.

Q:	What information is needed to apply for a home loan?
A:	To apply for a home loan, you will need to provide copies of current pay stubs, last two years of W-2’s and federal tax returns if self-employed, bank statements and copy of sales contract for purchase transactions. Additional documents may also be required.
Q:	What is the difference between pre-qualifying and a pre-approval?
A:	Pre-qualifying is an informal process of determining a loan amount you qualify for, and typically no lock-in option on rate at this stage. Pre-approval is a formal process based on a completed application, credit report and documenting of income and assets in order for letter of approval to be issued stating loan amount and terms you have qualified for.
Q:	How long does the home loan process take?
A:	From the time of completed application the normal home loan process usually takes three or four weeks to close.
Q:	How do I know how much my closing costs will be?
A:	Once a completed application is provided to lender a Good-Faith Estimate will be given. This is an estimate of fees and charges related to the home loan, and remember it is an estimate of costs and may not account for unforeseen fees and charges that may arise.
Q:	What is the difference between loan origination fee and discount points?
A:	The loan origination fee is a charge for the work involved in the evaluation, preparation and submission of the loan application. Discount points are charged to lower your interest rate, and the more points paid the lower the interest rate will be. Typically these fees are based on a percentage of loan amount.
Q:	How can it be determined if discount points should be paid?
A:	There are several factors to consider, but the principal determining factor is the length of time you plan to keep the property. The longer you own the property the higher the desire for a low rate and in turn the greater the benefit of paying up front discount points. Contact us for a comparison of the savings on these two options.
Q:	Will I be able to include my homeowners insurance and property tax in my monthly payment?
A:	Homeowners insurance and property tax are required to be included (escrowed) in the monthly payment anytime a loan amount is greater than 80%. If loan amount is 80% or less there is an option to waive escrowing by paying a one-time fee as part of the closing costs.
Q:	Are all home loan rates and closing costs the same?
A:	No, when comparing rates and closing costs, watch out for hidden costs and make sure you are comparing “oranges to oranges”. Compare the initial good-faith estimate from time of application to final closing statement to make sure you are not paying higher fees.
Q:	Is the seller able to assist with paying closing costs and pre-paid fees?
A:	Yes, however there may be limits on the percentage that the seller can pay based on loan type or loan to value.
Q:	What is PMI?
A:	PMI stands for private mortgage insurance and is charged anytime a loan amount is greater than 80%. PMI adds protection to the lender in the event of default.
Q:	Will First National Bank of Oklahoma service my loan?
A:	Depending on the type and term of home loan can determine whether or not servicing rights are transferred to investor.
Q:	Can I have my home loan payment automatically taken out of my checking account?
A:	Yes, once your loan is booked or transferred to investor you may set up an automatic payment from your deposit account.
Q:	Am I allowed to make a lump-sum principal payment on my home loan?
A:	Yes, you may make principal payment reductions at any time without a penalty. If you choose to pay off a home loan early there is not penalty under normal programs, but sub-prime loans may have a penalty for early payoff.
Q:	Is it possible to borrow additional funds on a home loan if I own my home?
A:	Yes, if you own your home and choose to refinance you can do a cash-out loan up to 90% of the appraised value of the home. Certain cash-out refinances may have higher interest rates if the loan amount is above 70% of the appraised value.

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Resources

The following links may be helpful:

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FDIC

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