Mortgage FAQs

To get pre-qualified for a mortgage, you'll typically need basic information about your income, employment, monthly debts, savings, and the amount you'd like to borrow. A mortgage banker can use this information to provide an estimate of how much home you may be able to afford.

Getting pre-qualified is one of the first and most important steps in the homebuying process. It gives you a better understanding of your budget before you begin shopping for a home and helps you make stronger offers when you find the right property.

When you begin the pre-qualification process, a Plains Commerce Bank mortgage banker will ask questions about your financial situation, including your income, employment, monthly debt payments, available assets, and estimated down payment. While pre-qualification is based primarily on the information you provide, it offers a helpful estimate of your borrowing power and prepares you for the next steps.

Every homebuyer's financial situation is unique. Factors such as your credit history, debt-to-income ratio, employment history, and available funds for a down payment all help determine which mortgage programs may be the best fit for your goals.

If you're ready to move forward, our experienced mortgage bankers will guide you through every step, making home financing as simple and personalized as possible.

Whether you're buying your first home, building a new home, refinancing your current mortgage, or exploring your financing options, getting pre-qualified is a great place to start.

Learn more about our mortgage process.

Explore available mortgage loan options.

Mortgage pre-qualification is an estimate of how much you may be able to borrow based on the financial information you provide. Mortgage pre-approval is a more detailed review of your finances that can strengthen your offer when you're ready to purchase a home.

Many homebuyers use the terms "pre-qualified" and "pre-approved" interchangeably, but they represent different stages of the mortgage process.

A mortgage pre-qualification is an early conversation about your finances. Your mortgage banker reviews information such as your income, debts, assets, and estimated down payment to provide an estimate of what you may be able to borrow. This helps you establish a realistic home-buying budget before you begin your search.

A mortgage pre-approval takes the process one step further. During pre-approval, your lender collects documentation, verifies your financial information, reviews your credit, and evaluates your overall ability to qualify for a mortgage. Because more information has been verified, sellers often view a pre-approved buyer as a stronger candidate.

Our mortgage bankers can help you understand which option makes the most sense based on where you are in your homebuying journey. 

Every mortgage is different, but many home loans move from application to closing in approximately 30 to 45 days. The exact timeline depends on your financial situation, documentation, appraisal, and the type of loan you choose.

Several factors influence your timeline, including:

• The type of mortgage loan you choose
• How quickly requested documents are provided
• Employment and income verification
• Property appraisal
• Underwriting review
• Title work and closing coordination

Throughout the mortgage process, your dedicated mortgage banker keeps you informed, answers your questions, and helps ensure everything stays on track. Learn more about the mortgage process here.

The amount of home you can afford depends on your income, monthly debts, available savings, credit history, down payment, and current interest rates. A mortgage banker can help determine a comfortable price range based on your financial goals.

Rather than focusing only on the maximum amount you may qualify to borrow, it's important to consider a monthly payment that comfortably fits your lifestyle and long-term financial goals.

When determining how much house you can afford, lenders typically evaluate several factors, including:

• Household income
• Monthly debt obligations
• Credit history
• Available down payment
• Employment history
• Property taxes
• Homeowners insurance
• Current mortgage interest rates

Our mortgage bankers at Plains Commerce Bank can help you understand how these factors work together and explain the mortgage programs that best fit your situation.

The amount you need for a down payment depends on the type of mortgage loan you choose. While a 20% down payment is often discussed, many homebuyers qualify with significantly less depending on the loan program.

The amount you'll need depends on several factors, including:

• The mortgage program you choose
• The purchase price of the home
• Your credit profile
• Your financial goals
• Whether you qualify for first-time homebuyer assistance

We'll help you compare available mortgage options and determine which financing solution best fits your needs. Our experienced mortgage bankers will explain your down payment options, estimated monthly payments, and any additional costs involved so you can make informed decisions with confidence.

If you're buying your first home, you may also qualify for programs designed to help reduce upfront costs while making homeownership more accessible.

The best way to determine how much you'll need for a down payment is to speak with a mortgage banker who can review your unique financial situation and recommend the mortgage options available to you. Contact us today!

No two homebuyers have the same financial goals, which is why Plains Commerce Bank offers a variety of mortgage loan options designed to meet a wide range of needs. 

Mortgage options available through Plains Commerce Bank include:

• Conventional Mortgage Loans
• FHA Loans
• VA Loans
• USDA Rural Development Loans
• Construction & Renovation Loans
• Bridge Loans
• First-Time Homebuyer Programs
• Fixed-Rate Mortgages
• Adjustable-Rate Mortgages (when applicable)

Every mortgage program has different eligibility requirements, down payment options, and benefits. Rather than navigating dozens of loan options on your own, you'll work with a local mortgage expert who can explain your choices, answer your questions, and guide you from application through closing.

Choosing the right mortgage is about more than finding the lowest interest rate. The right loan should support your financial goals today while providing flexibility for the future.

Some buyers benefit from a conventional mortgage, while others may qualify for government-backed programs like FHA, VA, or USDA loans. If you're building a new home, a construction loan may be the best option. If you're buying a new home before selling your current one, a bridge loan may help make your transition easier.

When recommending a mortgage solution, Plains Commerce Bank considers factors such as:

• Your credit profile
• Available down payment
• Employment and income
• Monthly budget
• Property type
• Long-term homeownership plans

Instead of trying to compare mortgage options on your own, our experienced mortgage bankers will explain the advantages of each loan program and help you choose the financing solution that best fits your needs.

A conventional mortgage is a home loan that is not insured by the federal government. Conventional loans are a popular option for many homebuyers because they offer flexible loan terms and competitive financing for qualified borrowers.

They are designed for buyers with a stable financial history and can be used to purchase primary residences, second homes, or investment properties, depending on qualification requirements.

Conventional loans are often an excellent choice for borrowers with strong credit and established income, but they aren't the right solution for everyone.

At Plains Commerce Bank, we'll review your financial goals and explain whether a conventional mortgage or another loan program may better fit your needs.

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. FHA loans can provide more flexible qualification requirements and lower down payment options for eligible homebuyers. This is a great loan for homebuyers with limited savings and low to moderate income. It features a low down payment that can be a gift, a grant, or a secured loan.

FHA loans are designed to help make homeownership more accessible, particularly for first-time homebuyers and borrowers who may not qualify for a conventional mortgage.

Some potential advantages of FHA loans include:

• Lower down payment requirements for qualified borrowers
• Flexible credit qualifications
• Competitive financing options
• Available for primary residences

Your Plains Commerce Bank mortgage banker will help determine whether an FHA loan or another mortgage program best supports your financial goals.

Compare FHA and other mortgage options.

VA loans are mortgage programs backed by the U.S. Department of Veterans Affairs and available to eligible veterans, active-duty military members, and certain surviving spouses.

Depending on eligibility, VA loans may offer:

• Competitive interest rates
• Limited down payment requirements
• Flexible qualification standards
• Financing for eligible primary residences

Because eligibility requirements are determined by the Department of Veterans Affairs, your mortgage banker will help review your qualifications and explain how the program works.

USDA loans are government-backed mortgage programs that help eligible buyers purchase homes in qualifying rural and suburban communities.

Because USDA eligibility depends on both the property location and borrower qualifications, your mortgage banker can help determine whether this program is available for the home you're considering.

If you're purchasing a home outside larger metropolitan areas, it's worth exploring whether a USDA loan could help you reach your homeownership goals.

A construction loan provides financing to build or renovate a home. Plains Commerce Bank offers construction and renovation financing designed to help homeowners finance new builds, major renovations, and improvement projects.

Building a home is different from buying an existing one, which means it requires specialized financing.

Plains Commerce Bank's Construction & Renovation Loan program is designed to help homeowners finance:

• New home construction
• Major home renovations
• Large remodeling projects
• Home improvements that increase value

Rather than juggling multiple loans, our mortgage bankers help simplify the construction financing process while working closely with you throughout your project.

If you're planning to build your dream home or significantly renovate your current property, our team can explain your financing options and help determine the right solution for your project.

A bridge loan provides short-term financing that can help homeowners purchase a new home before selling their current one.

Bridge loans may help homeowners:

• Buy before selling
• Access home equity
• Reduce the stress of coordinating two transactions
• Move on their timeline instead of the market's

This type of financing can be especially helpful in competitive housing markets where waiting to sell first could mean missing the right home.

A Plains Commerce Bank mortgage banker can help determine whether a bridge loan is appropriate based on your financial situation and homebuying goals.

Yes. Plains Commerce Bank offers mortgage solutions and first-time homebuyer programs designed to help qualified buyers navigate the homebuying process with confidence.

Our mortgage bankers will help you:

• Understand your financing options
• Get pre-qualified
• Compare available mortgage programs
• Learn about down payment opportunities
• Navigate every step of the mortgage process

We'll answer your questions, explain unfamiliar terms, and provide personalized recommendations based on your financial goals.

Whether you're just starting your home search or you're ready to make an offer, we're here to help you confidently take the next step toward homeownership.

There isn't one minimum credit score that applies to every mortgage. Credit score requirements vary depending on the loan program, your financial situation, and other qualifying factors. A Plains Commerce Bank mortgage banker can help you understand which loan options may be available.

Even if your credit isn't where you'd like it to be, you may still have financing options available. Our experienced mortgage bankers will review your complete financial picture—not just a single number—and help identify mortgage programs that fit your situation.

If you're not quite ready to buy, we can also discuss steps that may help strengthen your financial profile before you apply.

A mortgage credit inquiry may temporarily affect your credit score, but multiple mortgage inquiries made within a short shopping period are generally treated as a single inquiry by many credit scoring models.

It's natural to wonder whether applying for a mortgage will hurt your credit score. The good news is that credit scoring models recognize that consumers often compare mortgage lenders before making a decision.

When you're shopping for a mortgage within a relatively short period, multiple mortgage-related credit inquiries are often treated as a single inquiry for scoring purposes. This allows you to compare financing options without being significantly penalized for doing your research.

Your Plains Commerce Bank mortgage banker can explain how the mortgage application process works and answer questions about credit, pre-qualification, and pre-approval so you can move forward with confidence.

If you're concerned about your credit, we encourage you to have a conversation with our team before applying.

Yes. Self-employed borrowers may qualify for a mortgage. You'll typically need to provide documentation that verifies your income and financial stability, and your mortgage banker will help guide you through the process.

Because self-employed income can vary from year to year, lenders generally review additional documentation to understand your financial picture. This may include tax returns, business financial records, bank statements, or other income documentation depending on your circumstances.

If you're self-employed and considering purchasing, building, or refinancing a home, we encourage you to speak with one of our mortgage professionals early in the process.

Yes. Having student loans does not automatically prevent you from qualifying for a mortgage. Your mortgage banker will review your overall financial picture, including your income, monthly debt obligations, and the type of loan you're applying for.

Every situation is different, which is why it's important to work with an experienced mortgage banker who can help you understand your financing options.

Depending on the mortgage program, qualified borrowers may be able to use gift funds from eligible family members or other approved sources toward their down payment or certain closing costs.

Your Plains Commerce Bank mortgage banker will explain the specific requirements for your loan program and help ensure all necessary documentation is completed correctly.

If you're planning to use gift funds, let your mortgage banker know early in the process so they can help guide you through the requirements.

Your debt-to-income ratio (DTI) compares your monthly debt payments to your monthly income. Lenders use this ratio to help determine whether you can comfortably manage a mortgage payment along with your existing financial obligations.

Debt-to-income ratio, often called DTI, is one of the key factors lenders consider when reviewing a mortgage application.

Your DTI compares how much of your monthly income goes toward paying debts such as car loans, student loans, credit cards, personal loans, and other recurring financial obligations. 

A lower debt-to-income ratio generally indicates that you have more financial flexibility to manage a new mortgage payment. However, acceptable DTI levels vary depending on the mortgage program and your overall financial profile.

At Plains Commerce Bank, we look at your complete financial picture, not just one number. Our mortgage bankers can explain how your debt-to-income ratio may affect your financing options and recommend loan programs that align with your goals.

The documents you'll need depend on your financial situation and the type of mortgage you're applying for. In most cases, you'll be asked to provide proof of income, employment, assets, identification, and other financial information.

Depending on your loan program and financial circumstances, your mortgage banker may request documents such as:

• Government-issued photo ID 
• Recent pay stubs 
• W-2 forms or tax returns 
• Bank statements 
• Information about current debts 
• Employment information 
• Documentation for additional income or assets, if applicable 

If you're self-employed, own a business, or have unique income sources, additional documentation may be required.

Don't worry if you're unsure what you'll need. Your Plains Commerce Bank mortgage banker will walk you through the requirements, explain each step, and let you know exactly what documentation is needed based on your situation.

After you submit your mortgage application, your loan moves through several steps.

A typical mortgage process includes:

Application: Your mortgage banker gathers information about your financial situation and home purchase.

Processing: Your documents are reviewed, and any additional information needed is collected.

Underwriting: An underwriter reviews your loan to ensure it meets program requirements.

Appraisal: The property's value is verified through an appraisal, when required.

Final Approval: Once all conditions have been satisfied, your loan receives final approval.

Closing: You'll review and sign your loan documents before officially becoming a homeowner.

Throughout every stage, your dedicated mortgage banker will communicate with you, answer your questions, and keep you informed so you always know what's happening next.

Learn more about each step here.

Mortgage underwriting is the process where your lender reviews your financial information and the property to determine whether your loan meets the requirements for approval.

The goal is to confirm that the loan meets the guidelines for the mortgage program you've selected and that you have the ability to repay the loan.

Sometimes the underwriter may request additional documentation before issuing final approval. This is a normal part of the mortgage process and doesn't necessarily indicate a problem with your application.

At Plains Commerce Bank, your mortgage banker works with you throughout underwriting to answer questions, explain requests, and help keep your loan moving toward closing.

A home appraisal is an independent estimate of a property's market value. Lenders often require an appraisal to help ensure the home's value supports the loan amount. An appraisal helps protect both the borrower and the lender by confirming that the home's value aligns with the purchase price or loan amount.

It's important to remember that an appraisal is different from a home inspection. While an appraisal estimates market value, a home inspection evaluates the condition of the property and identifies potential repairs.

Closing is the final step in the mortgage process. During closing, you'll review and sign your loan documents, pay any required closing costs, and officially complete your home purchase or refinance.

Your mortgage banker and closing professionals will explain the documents you're signing and answer any questions you have throughout the appointment.

Before closing, you'll receive information outlining your loan terms, estimated costs, and any funds you'll need to bring to the closing table so there are no surprises.

Before closing, it's generally best to avoid making major financial changes such as opening new credit accounts, financing large purchases, changing jobs, or making large unexplained bank deposits without first speaking with your mortgage banker.

Significant financial changes may affect your mortgage qualification or require additional documentation before your loan can receive final approval.

If you're unsure whether a financial decision could affect your mortgage, your Plains Commerce Bank mortgage banker is here to help. A quick conversation before making a major purchase can help keep your closing on schedule.

Closing costs are the fees and expenses associated with finalizing your mortgage and purchasing a home. They may include lender fees, appraisal fees, title services, recording fees, prepaid taxes and insurance, and other costs depending on your loan and property.

Your Plains Commerce Bank mortgage banker will provide estimates throughout the mortgage process so you understand the costs associated with your loan before closing. Before your closing appointment, you'll also receive a Closing Disclosure outlining your final loan terms and estimated costs.

Our goal is to help you feel informed and prepared, with no surprises on closing day.

Your monthly mortgage payment is often made up of several different components. Understanding what you're paying each month can help you budget more confidently.

Your payment may include:

Principal – The portion that reduces the amount you borrowed.

Interest – The cost of borrowing money from your lender.

Property Taxes – Local taxes that may be collected through your monthly payment and paid from an escrow account.

Homeowners Insurance – Insurance that protects your home and may also be collected monthly through escrow.

Private Mortgage Insurance (PMI) – If required, this may be included depending on your loan program and down payment.

Your mortgage banker will explain each part of your estimated payment before you close so you know exactly what to expect.

Private Mortgage Insurance, commonly called PMI, is often required on conventional mortgage loans when the down payment is below a certain threshold.

Although PMI protects the lender, it allows many qualified borrowers to purchase a home sooner without waiting to save a larger down payment.

Your mortgage banker will explain whether PMI applies to your loan and answer any questions you have about your financing options.

If you're comparing different mortgage programs, we'll help you understand how PMI fits into your overall monthly payment and long-term financial goals.

The length of time you'll pay PMI depends on your loan program, loan balance, and home equity. Your mortgage banker can explain how PMI works for your specific mortgage.

As you build equity in your home by making payments or through increases in property value, your PMI requirements may change. The rules vary depending on the loan program, so it's important to understand how they apply to your mortgage.

An escrow account is a separate account used to collect and pay certain homeownership expenses, such as property taxes and homeowners insurance, as part of your monthly mortgage payment.

Rather than paying large property tax and insurance bills separately each year, a portion of those expenses is included in your monthly mortgage payment. The funds are placed into an escrow account and used to pay those bills when they become due.

Mortgage interest rates are influenced by market conditions and individual borrower factors, including the loan program, credit history, loan amount, down payment, and other financial considerations.

Because every borrower is unique, the best way to understand your financing options is to speak with a Plains Commerce Bank mortgage banker.

We'll explain your available loan programs, answer questions about current market conditions, and help you choose the mortgage that best fits your goals.

Yes. Mortgage interest rates can change daily, which is why many homebuyers ask about locking their rate.

A rate lock helps protect you from market fluctuations for a specified period while your loan moves through processing and underwriting.

The availability and terms of a rate lock depend on your loan program and where you are in the mortgage process.

Your Plains Commerce Bank mortgage banker will discuss your options, explain how rate locks work, and help you determine the right timing based on your home purchase and financing goals.

Many people wonder if they should wait for interest rates or home prices to change before buying a home. While market conditions are important, the best time to purchase a home is when you're financially prepared and the purchase aligns with your long-term goals.

Before buying a home, consider factors such as:

• Your income and employment stability 
• Your monthly budget 
• Available savings for a down payment and closing costs 
• Your long-term housing plans 
• Your comfort with a monthly mortgage payment 

Every homebuyer's situation is unique. At Plains Commerce Bank, our mortgage bankers take the time to understand your goals and help you evaluate your financing options so you can make an informed decision with confidence.

Yes. Refinancing your mortgage may help you better align your home loan with your current financial needs. While every homeowner's situation is different, refinancing can provide opportunities depending on your goals and available loan options.

Homeowners commonly refinance to:

• Lower their monthly mortgage payment 
• Change their loan term 
• Move from an adjustable-rate mortgage to a fixed-rate mortgage 
• Access home equity through a cash-out refinance, if eligible 
• Consolidate debt or finance major expenses, when appropriate 

We can review your current mortgage, explain available refinancing options, and help determine whether refinancing makes sense based on your financial situation.

We'll help you compare the costs and benefits so you can make an informed decision.

Contact a Mortgage Banker to discuss refinancing options.

As you build equity in your home, you may have opportunities to use that equity to help achieve other financial goals.

A cash-out refinance allows qualified homeowners to replace their existing mortgage with a new loan while receiving a portion of their available home equity in cash.

Homeowners may consider a cash-out refinance for purposes such as:

• Home improvements 
• Major renovations 
• Debt consolidation 
• Education expenses 
• Other significant financial needs 

Because every financial situation is different, it's important to understand both the benefits and considerations before refinancing.

We can explain how a cash-out refinance works and help determine whether it's the right solution for your goals.

Yes. Qualified borrowers may be able to finance a second home or vacation property. Plains Commerce Bank offers mortgage solutions for a variety of homeownership goals.

Financing requirements for second homes often differ from primary residences, so it's helpful to speak with a mortgage banker early in the process.

Investment property financing is available for qualified borrowers. Loan requirements may differ from those for a primary residence or second home. 

When evaluating an investment property loan, lenders may consider:

• Your credit profile 
• Income and assets 
• Existing mortgage obligations 
• Property type 
• Down payment 

Reach out today to learn more.

Home equity is the difference between your home's current market value and the amount you still owe on your mortgage. Building equity is one of the long-term financial benefits of homeownership.

Home equity may become available for future financial opportunities depending on your circumstances, such as home improvements or refinancing.

Your Plains Commerce Bank mortgage banker can help explain how equity works and discuss financing options that may be available based on your goals.

Choosing the right mortgage lender is important. Plains Commerce Bank offers a variety of mortgage loan programs, experienced mortgage bankers, and personalized service to help you buy, build, or refinance a home. We have the ability to lend in all 50 states and are committed to making the mortgage process as smooth as possible. We would love the opportunity to serve you!

No. You do not have to have an existing checking or savings account with Plains Commerce Bank to apply for a mortgage. No matter where you currently bank, you'll receive the same personalized guidance, responsive communication, and local expertise throughout the mortgage process.

If you're considering financing a home, we'd love the opportunity to help.

Yes. Plains Commerce Bank offers the convenience of starting your mortgage application online while still providing personalized guidance from an experienced local mortgage banker.

Applying online allows you to:

• Get started when it's convenient for you 
• Securely provide information 
• Begin your home financing journey quickly 
• Receive personalized guidance throughout the process 

Whether you prefer to apply online, speak with a mortgage banker by phone, or meet in person, we'll help make the mortgage process simple, transparent, and personalized. Apply online today!