In our home loans 101 and personal loans 101 videos, Lake Region Bank lender Tracy Lundy and personal banker Lisa Groff explain the home and personal loan options available, what lenders consider when reviewing an application, and how the local team can help you find the right financing for your needs.
Make your next big purchase with confidence with the right financing and a local, supportive lending team. Our mortgage loan originator Tracy Lundy and personal banker Lisa Groff explain how home and personal loans work in these quick videos.
Whether you are buying, building, refinancing, or using the equity in your home, Lake Region Bank has a home loan program that will fit your needs. Combine our competitively priced loans and fast and efficient application process with strength, stability, and personal service, and you’ve got the best of all worlds. Learn everything you need to know about the home lending process from our expert home lending team.
Home Loans 101 Transcript
Tracy: I’m Tracy Lundy with Lake Region Bank, and I’m the mortgage loan originator in the Willmar location. The types of people that I work with at Lake Region Bank are first-time home buyers, people buying investment properties, construction loans (for people looking to build a brand-new house or remodel their current home), vacation homes, and lots of retirees who are looking to downsize and buy a patio or other small home.
Some of the things I enjoy about our customers is their enthusiasm. When it comes to buying their first home, they’re usually really excited and they want to do everything that they can to move the process along fast, and they love learning.
One piece of advice I’d give to somebody looking to buy their first home or any home is to start early. There are lots of things that you need to have in order when you come and apply for a mortgage. The big thing is credit. There are lots of different things we can do to help to tweak your credit so you can increase your credit score and possibly get a better interest rate or even qualify at all.
The other thing is looking at your income. There are lots of things to know about your income that will determine when you will qualify for a mortgage.
One of the most frequently asked questions I get is, “Do I need 20 percent down?”
You definitely don’t need 20 percent down! We have lots of programs starting with 0 percent down. Some of these programs are income-based, but a lot of people in our area qualify for them.
I’m a top-producing mortgage lender with Minnesota Housing. Minnesota Housing is a great resource for first-time home buyers or for low- to moderate-income home buyers. Minnesota Housing has great programs for them. So, I tend to utilize them a lot to help those borrowers. There are people in all phases of their lives that I really enjoy working with and helping them and educate them and just make their dreams become reality.
Planning to purchase an RV or finance another major purchase? Lake Region Bank offers competitive auto and personal loan options to help you finance the things that make life fun. Whether you’re buying a new or used vehicle, motorcycle, boat, snowmobile, ATV, camper, RV, or financing another purchase, our flexible loan options and competitive rates can help make your purchase more affordable.
Personal Loans 101 Transcript
Lisa: The type of personal loans we have are anywhere from purchasing a car to a ready reserve on your checking account. We also do home improvement loans, home equity loans, lines of credit, and adjustable rate mortgages for debt consolidation.
As a personal banker, we are the ones that you come to for the personal loans. You qualify through the three Cs of credit: character, collateral, and capacity. We look at your credit score and what you want to pledge for your collateral. Then, the capacity is your debt-to-income ratio, which makes sure that you can service the debt with the new loan.
Some frequently asked questions about our loans are what is a good Beacon score or a good credit score? A score in the mid-700s or greater is considered a good credit score. The Beacon score range is from 300 to 850.
If you’re wondering what’s in your credit report, we give you a copy of that when you apply for a loan. It includes your name, address, Social Security number, date of birth, and then it lists all the debt that you’ve acquired. It will indicate if there are outstanding loan balances. It also gives us an indication if you’ve been 30, 60, or 90 days late on loan payments. It will also show collection items and a bankruptcy.
Another question we get as lenders is, “How do I get a credit score?” If you don’t have a credit score, you may need a co-signer on your loan. A co-signer is a person who signs on the loan with you, and we can use their credit score to determine the rate. At that point, as you’re making monthly payments, you will get credit. Our loans at Lake Region Bank require collateral. Collateral can be real estate or a vehicle, something that you pledge to the bank that you offer up as collateral in case you don’t make your loan payments.
Our personal bankers are here and they’re very well-versed in all the different types of loans that we have. They will sit down with you and listen to your story and determine the best loan for you.
If you’d like some help understanding your home and personal loan options, get in touch with our banking team today. Our friendly, local personal bankers and lenders are here to help you find the product that works best for your needs.
Home Loan 101 FAQs
Do I need 20% down to buy a home?
No. While some home loans may require a 20 percent down payment, Lake Region Bank offers mortgage programs with lower or even 0 percent down payment options for borrowers who qualify.
What types of home loans does Lake Region Bank offer?
Lake Region Bank offers financing for a variety of needs, including first-time home purchases, investment properties, construction and remodeling projects, vacation homes, refinancing, and homes for those looking to downsize.
What types of purchases can I finance with a personal loan?
Personal loans can be used for a variety of purchases and expenses, including cars, boats, motorcycles, snowmobiles, ATVs, campers, RVs, and home improvement projects. Lake Region Bank also offers home equity loans, lines of credit, and other personal lending options.
What factors are considered when I apply for a personal loan?
Lenders generally consider the three Cs of credit: character, collateral, and capacity. Your credit history and score, the collateral securing the loan, and your ability to repay the debt can all factor into the lending decision.
