Mortgage Loans

Kalamazoo County State Bank offers mortgage loans to clients living in our lending area as defined in our CRA Trade Area Statement. Because we do not sell any of our mortgages in the secondary market, we offer balloon mortgages with various amortizations. The primary advantage of obtaining a mortgage loan from KCSB is that you always have a person to talk with either by phone or when you visit one of our office locations. There is no need to wonder who your loan has been sold to or whether your payment will arrive on time. Our mortgage staff is friendly and the quality of our service cannot be surpassed.

If you think you would qualify for a first-time home owner, or low income mortgage, contact us. We can help you save on closing costs on either of them.

If a balloon loan doesn't meet your needs, we offer a wide range of Secondary Market mortgage loans through our association with a number of Secondary Mortgage vendors. They allow us to provide 15 to 40 year Fixed Rate mortgages, Adjustable Rate loans, FHA loans in addition to many other programs. 

We also work with Chase Manhattan Mortgage if a Rural Development loan may better suit your needs.

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Refinancing

If you have equity in your home or your mortgage rate is above the current market rate for mortgage loans, you may be able to lower your monthly mortgage payment substantially by refinancing your mortgage.

Another possible reason to refinance would be if you have a home equity loan payment in addition to your monthly mortgage payment. You may be able to reduce your overall monthly payments, or even take out additional equity for the same payment amount by refinancing now while rates are low.

Home Improvement Loans

Any person has the right to make a loan inquiry or to file a written application to obtain a Mortgage Loan or Home improvement loan, and to receive a response from Kalamazoo County State Bank.

Home Improvement loans may be secured by a mortgage or they may be unsecured.

1. Unsecured Loans made for the purpose of improving owner-occupied residential properties usually require:

   	Residence to be in the Bank's lending area as described in our CRA Statement
   	Completed real estate application
   	Creditworthiness, employment for 2 years in same trade or with same employer
   	Debt service should not exceed 36% of gross income (43% for tax-exempt income)

   There may be certain Bank and third-party fees that the borrower would be responsible for.

2. Secured Loans (Equity Loans) generally require the same guidelines
   set forth for any real estate mortgage loan. However, State Equalized values may be used to determine values and title searches may be
   used in lieu of title insurance.

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Home Equity Loans

If you have equity in your home and need money for a special purpose or possibly for debt consolidation, consider the benefits of taking out a home equity loan. The interest you pay on your Home Equity Loan may be fully tax-deductible.  Please check with your tax advisor to see if your loan qualifies.

The Closed-End Home Equity loan has a fixed rate.   The loan is fully funded at the time of settlement. We also offer an open-end Home Equity Line of Credit.

Land Contract Servicing

Tired of figuring interest? Providing annual statements to purchasers on your land contract? Let us do the work for you. For a small set-up fee and a monthly service fee, we will collect your land contract and distribute the funds as you instruct. In addition, we will do the required annual reporting to the purchaser. Call us today! 269.679.5291 Control Department.

Vacant Land Financing

Kalamazoo County State Bank finances vacant land. Underwriting guidelines are generally the same as for any other real estate mortgage. Call us to apply. 269.679.5291 Mortgage Department.

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Actions to Avoid

There are a few actions you want to avoid when applying for mortgage financing.

These activities could have a negative impact on your ability to qualify and should be discussed with your loan officer.

	Do Not Change Jobs	Do Not Make Major Purchases
	Do Not Acquire New Debt	Do Not Change Banks

Funding Your Down Payment

	One of the initial hurdles facing potential homebuyers is accumulating funds to cover the down payment and loan closing costs. The amount of money available to you can greatly increase or limit your purchasing power and even affect your loan interest rate and resulting monthly payment amount. There are several options for raising money that are acceptable. Here are some suggestions:
	Have your parents give you the money as a gift - We will require written evidence that the funds are actually a gift and not a loan. The gifter is permitted to give up to $12,000 per year to another individual free of a gift tax. Technically, each parent could gift $12,000 to you and or your spouse.
	Sell or borrow against an asset - Turning assets into cash is a good strategy when preparing to apply for mortgage financing. If you plan to borrow against an asset be sure the increased debt does not inhibit your ability to repay the mortgage you are considering.
	Borrow against a retirement fund or insurance policy - Some 401(k) waive penalties if funds are used for a first time home purchase. Note, if you borrow against an insurance policy, the loan payment will be included as debt when considering eligibility for mortgage financing.
	Have the seller finance the down payment - The seller holds a note for 20% of the sale price. You obtain a mortgage financing for 80% of the purchase price.
	Select a mortgage plan with zero points - The rate and resulting monthly payments will be increased with this option, but closing costs will be lowered substantially.
	Be sure to consult with your loan officer prior to making a final decision regarding the best way to raise a down payment based on your particular financing needs.

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Application Checklist

We understand that home financing is an important decision and we're here to help.

We will be happy to schedule an appointment for you with one of our mortgage experts.

To expedite the processing of your mortgage application, please assemble and bring the following documents with you to your first meeting with us.

Records We Need At The Time of Application

	W-2 & 1040 / Last 2 Years	Monthly Payments***
	Year-to-Date Pay Stubs	Bank Statements / Last 3 Months
	Employment / Last 2 Years*	Original Purchase Agreement ****
	Residence / Last 2 Years**	Self Employed / 2 Yrs Tx P&L/Bal Sht
	Debt Balances	Check for Appraisal & Application Fee

* Including addresses, phone numbers and dates of employment
** Name and address of landlord and/or mortgage holder
*** Including account numbers, plus names and addresses of creditors
**** Except when applying for pre-approval or refinancing of your current home
Additional information may be required depending on your particular situation or specific loan request.

Your KCSB loan representative will discuss such requirements with you.

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Definitions of Typical Mortgage Closing Costs and Prepaid Items:

The Down Payment - is your initial equity in the property. First time homebuyers programs require less down payment. Ask for details.

Tax Pro-Ration - is your reimbursement to the seller for property taxes they have paid in advance or funds the seller is responsible for paying to you.  The amount varies based on the length of time between the closing and the next tax due date and are prorated by the monthly factor.

Closing Costs - are your reimbursements to Kalamazoo County State Bank, or other service providers, for expenses to process the loan. They include costs for the survey, appraisal, credit report, title insurance and loan processing fees. These costs will be itemized on your good faith estimate RESPA form.

Points - a point is an amount equal to one percent of your loan amount.

Homeowners Insurance - is required to be purchased and paid for prior to the closing. The policy must cover a term of one-year from the closing date.

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