First National Bank Mortgage Loans
Expert advice. Flexible products.
Expert advice. Flexible products.
First National checking account customers receive a $200 mortgage closing cost credit.1 Talk to one of our dedicated mortgage loan officers for details.
With a First National loan officer by your side, you’ll have another partner on the journey towards a new home. Questions are part of the process and he or she will have an answer for each.
Simple things to have on-hand or in-mind:
The First National Bank Lock & Shop program2 offers peace of mind by locking in your rate 60 or 90 days. If interest rates go up, your rate stays the same. If rates go down, we will match the lower market rate.
For many first-time buyers, the home purchasing process has a few unfamiliar steps. Not to worry, our Home Buying Process Quick Guide will give you the basics to begin with confidence.
Benefits for first-time buyers:
Refinancing can lower payments, generate funds for home projects and provide you with a loan that is right for your evolving needs.
Stay safe from higher rates and lock your rate in for 60 or 90 days.2
Down Payment Options as Low as 3-5%.
Competitive mortgage rates help save you money over the life of your loan.
Let your dedicated mortgage loan officer answer all of your questions and provide peace of mind - start to finish.
Before you begin to shop, get a solid idea about monthly payments and how much you can afford. Once you know your spending limits, your home search will have the focus it needs to succeed.
What's the difference between the interest rate and APR?
To finance your home, banks charge an interest rate based on multiple factors. The APR (annual percentage rate) includes costs like closing costs. While the interest rate measures the monthly payment, the APR is used to figure the full cost of the loan. Talk to your loan officer about how to fine tune your mortgage estimate based on these two rates.
What is an adjustable rate mortgage?
An adjustable rate mortgage, or "ARM," is a loan that offers a lower initial interest rate than most fixed rate loans, but will adjust up or down to match changes in the interest rate after a certain length of time. It’s a trade-off, you can start with a lower monthly payment knowing interest rates may increase in the future, leading to a higher monthly payment. Consider how long you plan to own, if your income will increase, and your risk tolerance when considering an adjustable rate mortgage.
What are points and should I pay them in exchange for a lower interest rate?
Points are considered a form of interest and are an optional payment used to lower the long-term interest rate of your home. Each point is equal to one percent of the loan amount. Paying points requires more funds at the time of closing but result in lower monthly payments over the term of your loan.
How do I know if it's best to lock in my interest rate or to let it float?
Mortgage interest rates are as hard to predict as the stock market and no one can know for certain whether they’ll go up or down. If you feel that rates are on an upward trend, then you should lock your rate during the closing period. Review your contract for the estimated closing date to help choose the right time to lock your rate.
How much money will I save by choosing a 15-year loan rather than a 30-year loan?
The interest rate on a 15-year loan is typically lower and, more importantly, you’ll pay less than half the total interest cost of the 30-year mortgage. Monthly payments on a 15-year may be significantly higher and many people feel that a 30-year loan still makes financial sense.
Are there any prepayment penalties charged for these loan programs?
None of the loan programs we offer have penalties for prepayment. You can pay off your mortgage any time with no additional charges.
What is your Rate Lock Policy?
The interest rate is subject to movements without advance notice. Locking a rate protects you from the time that your lock is confirmed to the day that your lock period expires. Once you lock your rate, a lock- in agreement will be provided to you that details the terms.
What is mortgage insurance and when is it required?
Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 3 - 5% of the home's value.
Can I inquire about a loan before I find a property to purchase?
Yes, starting an online inquiry for a mortgage loan and knowing if you have credit approval before you find a home is one of best things you could do. Getting a credit approval gives you an edge in a competitive buyer’s market and you’ll be ready to bid on a home sooner once you find “the one.”
What is a credit score and how will my credit score affect my inquiry?
A credit score is a compilation of information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. Items that affect your credit score include payment history, outstanding obligations, the length of time you’ve had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.
Your credit score is calculated by the credit bureau, not by the lender. They have proven to be a very effective way of determining credit worthiness. As a rule of thumb, a higher credit means you’re a lower credit risk, and can help receive a lower interest rate.
Will the inquiry about my credit affect my credit score?
An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing.
Will I be charged any fees if I authorize my credit information to be accessed?
There is no charge to you for the credit information we'll access with your permission to evaluate your online inquiry. You will only be charged for a credit report if you make an application and close the loan.
Can I borrow funds to use towards my down payment?
Yes, you can borrow funds to use as your down payment. However, any loans that you take out must be secured by an asset that you own. Please keep in mind that the terms of the borrowed funds loan may impact your loan qualification.
I'm self-employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period.
Will my overtime, commission, or bonus income be considered when evaluating my inquiry?
In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We'll usually need to obtain copies of W-2 statements for the previous two years and your most recent 30 days of paystubs to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We'll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.
I am retired and my income is from pension or social security. What will I need to provide?
We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. This can usually be verified with a copy of your award letter.
If I have income that's not reported on my tax return, can it be considered?
Generally, only income that is reported on your tax return can be considered when inquirying about a mortgage. Unless, of course, the income is legally tax-free and isn't required to be reported.
How will rental income be verified?
If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income.
I have income from dividends and/or interest. What documents will I need to provide?
Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.
Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered for repayment.
Will my second job income be considered?
Income from a second job may be considered if a history of secondary employment can be verified.
I've had a few employers in the last few years. Will that affect my ability to get a new mortgage?
Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. This is particularly true if you made employment changes without having periods of time in between without employment. We'll also look at your income advancements as you have changed employment.
If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time of predicting your earnings without a history with your new employer.
I was in school before obtaining my current job. How should I complete my inquiry?
If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."
If my property's appraised value is more than the purchase price can I use the difference towards my down payment?
Unfortunately, if you are purchasing a home, we'll have to use the lower of the appraised value or the sales price to determine your down payment requirement.
I'm getting a gift from someone else. Is this an acceptable source of my down payment?
Gifts are an acceptable source of down payment on many loan programs. Some loan programs have limitations regarding gifts. As each scenario is unique, please contact a Loan Originator to discuss your situation.
Prior to closing, we'll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.
I am selling my current home to purchase this home. What type of documentation will be required?
If you're selling your current home to purchase your new home, we'll ask you to provide a copy of the settlement or closing statement you'll receive at the closing to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing.
I am relocating because I have accepted a new job that I haven't started yet. How should I complete my inquiry?
Congratulations on your new job! If you will be working for the same employer, complete the inquiry as such but enter the income you anticipate you'll be receiving at your new location.
If your employment is with a new employer, complete this online inquiry as if this were your current employer and indicate that you have been there for one month. The information about the employment you'll be leaving should be entered as a previous employer. We'll sort out the details after you submit your inquiry.
I've co-signed a loan for another person. Should I include that debt here?
Generally, a co-signed debt is considered when determining your qualifications for a mortgage.
I have student loans that aren't in repayment yet. Should I show them as installment debts?
Yes. If you are not sure what the monthly payment will be at this time, enter an estimated amount.
Will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage?
If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage.
What is an appraisal and who completes it?
To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties. The appraiser will create a written report for us and you will be given a copy before your loan closes. Usually the appraiser will inspect both the interior and exterior of the home.
Will I get a copy of the appraisal?
As soon as we receive your appraisal, we will update your loan with the estimated value and provide you a copy.
I'm purchasing a home, do I need a home inspection AND an appraisal?
The appraiser will make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage that could affect the salability of the property will also be reported.
However, appraisers are not construction experts and won't find or report items that are not obvious. They won't turn on every light switch, run every faucet or inspect the attic or mechanicals. That's where the home inspector comes in. They generally perform a detailed inspection and can educate you about possible concerns or defects with the home.
Accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.
How long does it take for the property appraisal to be completed?
Licensed appraisers who are familiar with home values in your area perform appraisals. Generally, it takes 10-14 days before the written report is sent to us. We will promptly give you a copy of any appraisal, even if your loan does not close.
I've heard that some lenders require flood insurance on properties. Will you?
Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. Floods happen anytime, anywhere. But the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 help to ensure that you will be protected from financial losses caused by flooding.
We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding.
Will I need to have an attorney represent me at closing?
In some areas of the country it is customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation.
Can I get advanced copies of the documents I will be signing at closing?
Yes, you will receive a Closing Disclosure 3 days prior to closing for review. Other documents are available upon request.
Who will be at the closing?
The closing agent acts as our agent and will represent us at the closing. However, your personal Mortgage Loan Officer will contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can't answer during the closing, ask them to contact your Mortgage Loan Officer by phone and we'll get you the answers you need - before the closing is over.
I won't be able to attend the closing. What other options are there?
If you won't be able to attend the loan closing, contact your Originator to discuss other options.
If I apply, where will the closing take place?
We use a nationwide network of closing agents and attorneys to conduct our loan closings. We'll schedule your closing to take place in a location that is located near your home for your convenience.
We'll deliver our loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they'll have plenty of time to prepare for your closing.
Receive a mortgage closing cost credit when you have a Free Checking account.1
1 $200 closing cost credit with a new or existing First National of Omaha (FNBO) checking account
2 First National Bank’s Lock & Shop program locks the initial interest rate for 60 or 90 days on 15 and 30-year conventional, 30-year FHA and VA fixed-rate purchase loan products. Your exact interest rate will depend on the date you lock your rate. In order to obtain this rate, a fully executed purchase agreement must be received by First National Bank within 30 calendar days of a 60 day lock or 60 calendar days of a 90 day lock. You will have the option to extend the due date for the purchase agreement and the rate lock expiration one time by 15 days. In addition, you may exercise a float down in the rate to the current market rate within 7 calendar days of executing a purchase contract. Please contact your loan officer to exercise this float down option. Additional fees, conditions or exclusions may apply. This is neither a commitment to lend nor an approval of the loan inquiry. Any change in rate or fees may affect approval of the loan.
See a mortgage loan officer for complete details. Some restrictions may apply.