Home Loans
Getting a Mortgage Shouldn't Feel Impossible
Home is where so many of life's moments happen and we're here to help you get there.
You Can Buy the Home You Love with Confidence
Buy the Home You Love
Friendship State Bank has been helping people like you buy the home they love for more than 110 years - since 1912!
As your community bank we’re focused on the needs of those specifically in Southeastern Indiana. Decisions regarding your home financing are made right here locally. And we are committed to reinvesting a portion of our profits into local businesses, residents, and organizations to build strong communities together. You can Rely on Friendship.
4. Apply
Get pre-qualified for your mortgage and confidently negotiate with sellers.
Still have questions?
Call us at 812-667-5101
Personal Savings
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From first dollars to big dreams, unexpected expenses to future plans. We have savings options to help you prepare for the moment that matter.
Frequently Asked Questions
What fees and additional costs are associated with getting a mortgage?
When applying for a mortgage, it's essential to know what to expect regarding fees and costs.
Loan Application Fees May Include:
- Cost of a Personal Credit Report: To assess your creditworthiness.
- Cost of an Appraisal: Necessary to determine the value of the property you wish to buy or refinance.
Typical Closing Costs May Include:
- Homeowners and Title Insurance Premiums: Protect your investment.
- Inspection Fees: Ensure your property is in good condition.
- Loan Underwriting Fees: Cover the cost of evaluating your loan application.
- Survey Charges: Confirm property boundaries.
- Closing or Origination Fees: This fee covers the cost of processing your mortgage application and finalizing your loan.
What is a down payment and how much will I have to have to qualify?
Your down payment depends on the type of loan you choose. While down payments can range from 0% to 20%, a larger down payment generally results in lower monthly payments. Many homeowners prefer to set aside at least 10% of the home’s purchase price for a down payment to ease future financial commitments.
What is an Adjustable-Rate Mortgage (ARM)?
An Adjustable-Rate Mortgage (ARM) is a type of loan that offers a lower initial interest rate compared to a fixed-rate mortgage. Here’s what you need to know:
- Initial Fixed Period: ARMs typically start with a fixed interest rate for a specific period (e.g., 5, 7, or 10 years). During this time, your monthly payments remain stable, making budgeting easier.
- Adjustment Period: After the initial fixed period, your interest rate will adjust periodically (usually annually) based on market conditions and a predetermined index. This means your monthly payments may fluctuate after the fixed period ends.
- Potential for Lower Payments: Because the initial rate is often lower than that of a fixed-rate mortgage, ARMs can result in lower monthly payments, making homeownership more accessible.
- Rate Caps: Most ARMs include rate caps, which limit how much your interest rate can increase at each adjustment period and over the life of the loan. This feature provides a level of protection against dramatic rate increases.
- Ideal for Certain Buyers: ARMs can be a great option for buyers who plan to move or refinance before the adjustment period begins or those who expect interest rates to remain stable or decrease in the future.
Is an ARM Right for Me?
Consider your financial situation and long-term plans when deciding if an adjustable-rate mortgage fits your needs. Your loan officer can help you evaluate your options and determine the best mortgage solution for your unique circumstances.
What are my other options if I don't want an Adjustable-Rate Mortgage?
We offer a variety of fixed-rate mortgage options tailored to meet different needs and financial goals. You’ll have peace of mind knowing exactly what your payments will be over the life of your loan.
What documents will I need for my mortgage application?
Income Verification
- W-2 Statements: Last 2 years.
- Pay Stubs: From the previous 4 weeks.
- Self-Employed? Last 2 years of tax returns.
- Bank Statements: From the past 2 months for accounts used in your down payment.
- List of Assets: Include all checking/savings accounts, real estate, and investments. Provide the name and address of financial institutions, account numbers, and current balances.
- List of Debts: Include creditor name, address, account numbers, monthly payments, and outstanding balances.
- Annual Real Estate Taxes: Estimated amount.
- Homeowners’ Insurance: Annual premium cost.
- Purchase Contract: If buying a house or land.
- Deed/Legal Description: Copy required.
- Land Contract: If applicable.
- Residency History: Addresses covering the past 2 years.
- Divorce Decree/Separation Agreement: If applicable, including any child support or alimony details.
- Employer Contributions: Copy of statement detailing any employer-provided loans or paid closing costs.
- Appraisal Fee: Required at application.
Who will service my mortgage?
Your mortgage will be serviced by Friendship for the entire life of the loan, so you’ll always work with a team you know and trust, right here in your community.