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Loans & Mortgage

Kent Bank is your source for Real Estate Mortgages and Home Equity Lines of Credit.

You can rely on Kent Bank for objective information about the dozens of Real Estate loan types available to insure that your home loan is a perfect fit for your budget and lifestyle.

Kent Bank is a leading Real Estate lender in northwest Illinois – providing more than $9,743,000 in mortgages during 2010.

Getting Started

Can you afford to buy a home?

Part of answering this question involves figuring out how much you're able to pay every month for a mortgage, including principal, interest, property taxes and property insurance. In general, we require that your monthly housing payment be no more than 28 to 33 percent of your gross monthly income.

In addition, your total monthly debt payments, including your mortgage costs, car loans, student loans, credit cards and others, generally should not exceed 40 percent of your gross monthly income.

A good way to determine what you're able to afford is to get pre-approved for a mortgage. Call us at 1815.235.2711 or 1.815.443.2711 to start the process of getting prequalified.

Complete a Mortgage Loan Application

You may complete a Mortgage Loan application online by clicking here. Your completed application will then be reviewed and we'll start the process. We'll analyze your income and expenses, obtain your credit history and note your credit score. The application can also be printed and returned to a Kent Bank location. Click here for a Printable PDF Mortgage Application.

You will need Adobe Acrobat Reader to view the PDF Mortgage Application. If you do not have Adobe you can click here to download a free copy of it.

If you are pre-approved for a mortgage by Kent Bank, we'll provide you a letter stating that you have conditional approval for a specified loan amount.

Documentation you may need to provide if you decide to proceed with the loan:

  • W-2s. Usually you will need to provide copies of your W -2s for the two most recent years. You may also provide other income information, such as social security, pension, interest or dividends, rental income, and child support or alimony, if you choose to have them considered.
  • Pay stubs. Provide your pay stubs that cover the 30-day period before the date of your mortgage application.
  • Federal income tax returns. If you are self-employed, or more than 25% of your income comes from commission, overtime or bonuses, you may need to provide complete copies of federal income tax returns you filed for the two most recent years.
  • Bank statements. You may need to provide statements from all your accounts (checking, savings, mutual funds, money markets, certificates of deposits, 401(k) or other retirement accounts) for the last two months to verify the exact amount of cash you have available for your down payment and other costs associated with your home purchase. For certain mortgage loans, a portion of the down payment may come from a gift from a family member or a grant from a local down payment assistance program.

Mortgage choices

There are dozens of mortgage loan variations available. Selecting the one that fits your needs is important.

Fixed-rate loan. The interest rate is set for the full length of the loan. Because the monthly payment for principal and interest stays the same for the life of the loan, it's easier to plan a budget.

Adjustable-rate loan. An adjustable-rate mortgage (ARM) usually starts with a lower initial interest rate than traditional fixed-rate loans. After a set initial payment period (usually 1, 3, 5, 7 or 10 years), the interest rate may change periodically based on market conditions. As the rate changes, your monthly payment changes. ARM loans feature an adjustment "cap" which limits how much the interest rate can go up. This helps protect you from large increases in your monthly payment. If you plan on being in your home for a shorter period of time, or expect your income to increase over the years, an ARM loan may be right for you.

Loans for First Time Homebuyers

These affordable financing programs can help make it easier to buy a home since they require little or no money down and offer flexible credit and income guidelines.

Repayment schedule

Consider how quickly you'd like to repay your loan — within 15 years, 20 years, 25 years, 30 years? Typically, the sooner you repay the loan, the more you'll save in interest payments. However, the longer you extend the term of your financing, the lower your monthly payments may be. When choosing a loan term, consider your budget, your long-term spending patterns, your income over the life of the loan and how long you plan to stay in your home.

Closing costs. In addition to a down payment, you will need to pay closing costs for processing your loan and transferring the property ownership from the seller to you, the buyer. When you apply for a loan, Kent Bank will give you an estimate of closing costs, which may include:

  • Origination fees, which are the costs of processing your loan (including credit report, appraisal and flood zone determination)
  • Items paid in advance, including first-year hazard insurance premium and first-year flood insurance premiums, if required
  • Escrow account, an account held by the lender into which the homebuyer usually pays for city/county property taxes, mortgage insurance, hazard insurance and flood or earthquake  
  • Title insurance charges
  • Recording and transfer charges
  • Attorney's fees

Mortgage insurance. If your down payment is less than 20% of the home purchase price, you can expect to pay some form of mortgage insurance. Home loans that are insured let you buy a home with a lower down payment than the lender would otherwise require. Mortgage insurance costs vary, depending on the amount of your down payment, the type of loan you select and your credit score.

Hazard insurance. Hazard insurance (sometimes referred to as a homeowner's policy) protects you and Kent Bank from loss in the event the home is damaged or destroyed by fire, storm or other hazards. You're responsible for obtaining hazard insurance prior to closing and for providing proof of insurance to your lender. The lender may also require additional insurance against loss by flood or earthquake.

Kent Bank New Home Construction Mortgages

In our experience, building a new home often doesn't go quite as smoothly as it should. Negotiations with contractors, unexpected costs, change orders and a hundred other details can make building a real headache.

Kent Bank Construction Mortgages are designed to provide you flexibility and simplicity during the building process. Kent Bank Construction loans operate as a hybrid between a line of credit and a loan. You close on the loan before construction begins, but you don't pay interest until the money is disbursed, usually over a period of time.

Kent Bank Home Equity Line of Credit
Using the Equity in your home (the difference between the value of your home and the amount you owe on it) as collateral, Kent Bank establishes a revolving line of credit up to 90% of the equity. Use your line for home improvements, education funding, a second home and other major purchases or expenses. Interest on the loan may be tax deductible. (Consult a tax advisor about tax deductibility of interest.) Once your credit line is established, you'll access your line using Kent Bank convenience checks.

Kent Bank Home Equity Lines are available with fixed and variable interest. Interest is calculated only on the amount of the loan actually in use. Interest is paid monthly and principal can be repaid at any time during the life of the loan.

Kent Bank offers the Home Equity Line of Credit with NO CLOSING COSTS!

Kent Bank Home Equity Loan
Also using the equity in your home, a Kent Bank Home Equity Loan is an installment loan for a specific amount. Interest on a Home Equity Loan may be tax deductible. (Consult a tax advisor regarding tax deductibility of interest.) On the funding date, all of the principal is advanced for your use.

Kent Bank Home Equity Loans are available with fixed and variable interest. Interest and principal payments are paid monthly according to the loan payment schedule.

Call us at 1815.235.2711 or 1815.443.2711 to get started or to have your questions answered.

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