Mortgage Resources | Liberty Savings Bank

Once you have completed an application, here are a few things you may expect:

If you have not already been working with one of our Loan Officers, as soon as we receive your application one will contact you ASAP
Your Loan Officer will go over the application with you, checking for accuracy and filling in any missing details.
The Loan Officer will then ask you for some qualifying documents so they can start working on getting your application approved. Below are some general documents that may be requested.
- Photo ID
- Purchase Contract (If you are buying a home)
- Paystubs
- Bank Account Statements

Liberty Savings Bank's minimum credit score requirement for a fixed-rate conventional loan is 640. (Other loan options are available, please speak to a Loan Officer for minimum score requirements.)

A fixed-rate mortgage with Liberty Savings Bank has a set interest rate that will not change for the duration of your loan. If you are looking to stay in your home for a long period of time, this would be the best option.

An adjustable-rate mortgage has a low introductory interest rate that will change over time. Typically, in 5 – 7 years. If you are only planning on staying in the home for a short period of time, this would be the best option.

A 15-year mortgage will traditionally have a lower interest rate. Your payments will be higher but, you will pay less interest over the life of the loan and pay it off in half the time.

A 30-year mortgage will traditionally have a higher interest rate. Your payments will be much lower but, the amount of interest paid over the life of the loan will be greater.

To be"Pre-Qualified" means you have supplied your loan officer with your overall financial picture. Meaning they know your current income, assets, and debt parameters. Our Loan Officer will then give you an estimate on how much you may be able to borrow if you meet all the qualifications at the time of closing.

Here are some of the most important financial benefits of buying a house.

Owning a house will help you build wealth over time
You’ll build equity every month
You may be able to take advantage of mortgage tax deductions
You qualify for Capital Gains exclusion
A mortgage “forces” you to save money every month (through your equity)
Long-term, buying is cheaper than renting.

There’s a lot that goes into buying a house. If you’re looking to start the process, here are some helpful steps to get the ball rolling.

Gather your personal info: Preliminary preparations like talking to your bank, making sure you have a down payment, and knowing your credit score help you know if you’re even ready to buy a house.
Do your research: Look up listings in areas you’d like to live and get a feel for the pricing in that area. Look at houses you think you’d like and check those prices. Figure out what you’re looking for so you know what to expect.
Get pre-qualified: This will let you know how much you can actually spend. Getting pre-qualified for a mortgage is an easy way to do this.
Find an adviser, and a good one at that: Having a professional in your corner can make a huge difference, especially if this is your first time buying a house. Odds are, they’ll know more than you will, and they can provide useful insight throughout the process. You can find real estate agents online, but it’s also recommended that you ask trusted family, friends, and acquaintances for recommendations.
Shop and make an offer. Tour, take notes, take pictures, and ask questions! You have to start looking at houses to buy one, so get out there! Take it seriously, pay attention, and relax a bit, this is the fun part!

Typically, your loan officer will try to get your loan closed within 30 days. Sometimes delays happen but we will update you immediately if anything is going to delay your closing!

An adjustable mortgage loan is a fixed rate for the first few years then it can change every six months after that over the course of the loan. Your principal and interest payment can also vary as the rate changes.

Closing costs are expenses associated with completing the purchase or refinance of the house.

The down payment is the difference between the purchase price and the loan amount

Equity is the difference between the value of the home and the mortgage loan. This typically increases over time as the amount of the loan decreases.

FICO is the major credit scoring model used to assess the risk of the borrower.

A Fixed Rate Mortgage will have the same interest rate every month meaning your principal and interest payment will never vary.

The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate.

It is different than the APR or Annual Percentage Rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

A jumbo loan is a loan of more than $726,200.

The LTV Ratio is the amount loaned for a mortgage divided by the value of the home.

To be"Pre-Qualified" means you have supplied your loan officer with your overall financial picture. Meaning they know your current income, assets, and debt parameters. Our LOAN OFFICER will then give you an estimate on how much you may be able to borrow if you meet all the qualifications at the time of closing.

Principal is the amount of money borrowed for the mortgage. This decreases as payments are made.

Refinancing is contractually changing the terms and rates of your mortgage loan.

Reserves are the amount of liquid assets a borrower has on-hand after paying the down payment and closing costs

Risk is the likelihood of the borrower being able to make timely payments on the loan.