Mortgage | Loans

A mortgage is a specialized loan that is aimed at buying real estate: apartments, houses, or land. Mortgage money cannot be spent in any other way. Large amounts, long terms and serious underwriting characterize mortgages.

How does a mortgage work?

A mortgage is a long-term and backed financial product. When applying for a mortgage, the money is transferred in one payment, after which the borrower pays them over a certain period. Markesan State Bank offers mortgages for 8, 15, and 25 years.

When you apply for a mortgage, you will be required to make a down payment. It can vary from lender to lender. For example, we have a down payment of 12% of the loan amount.

Your credit history plays an important role in obtaining a mortgage. Of course, it affects all loans, but when you are dealing with a mortgage and how large the amounts it provides, lenders must be completely confident that the debt will be paid and the borrower can afford it. Markesan State Bank considers mortgage applications from borrowers who have a credit score of 620 or more.

Types of mortgage

There are two types of mortgages – traditional and adjustable-rate mortgages.

A traditional mortgage, or fixed rate mortgage, is no different than a personal loan, except for the amount. After receiving the money, you will pay monthly payments throughout the entire term. And the size of these payments will not change, regardless of the economic situation in the country will be and what the bank rate will be.

An adjustable-rate mortgage assumes that you will make payments at the original rate for the first few years. However, after a certain period, which depends on the length of the mortgage, the rate may be revised and increased. Markesan State Bank offers both types of mortgages. You can find out the current rates by consulting by phone or personally with our manager.

Requirements for a mortgage

Because a mortgage is a large, long-term loan, we need a little more of your paperwork to get it approved than any other loan would require. Please consider this requirement with understanding and prepare the following documents:

  • Government-issued IDs
  • Tax returns from the past two years.
  • Two years’ worth of W-2s or year-end pay stubs. If you are self-employed, other evidence of income.
  • Child support or divorce documents.
  • Bank statements.
  • Statements from additional assets.
  • Photo ID.
  • Rental history
  • Contact information.

What happens if you can’t make mortgage payments?

Before approving a mortgage, each lender, including us, tries to make sure that the borrower will not experience problems with debt repayment. However, in life, there are unforeseen circumstances that we are not able to influence.

If you understand that you will not be able to make a mortgage payment on time, first of all, inform the bank about this. For our part, we will try to do everything possible to help you solve this problem: we will offer a deferment or revise the payment plan together. Of course, the sooner you report financial difficulties, the easier it will be for us to resolve this issue.

If the borrower fails to notify the bank of the problems and misses payments one after the other, the bank is free to start a lawsuit and subsequently confiscate the purchased property in order to sell it at auction. For these funds, the debt of the borrower will be repaid.