Ask A Banker Videos
See our bankers in action as they talk about specific products and services offered by Waukesha State Bank!
What is a HELOC? How can I use it?
Presented by: Gerry Benton, Mortgage Consultant, NMLS #1151292
Video Transcript:
Your home is an investment. A Home Equity Line of Credit allows you to access those funds for literally anything you might need. Some examples are a home remodeling project, a new car, or education expenses. HELOCs are great for when you don't know how much you're going to need, when you don't want to take out of savings, or for emergencies, like when your water heater or furnace breaks down. Much like a credit card, you can use it, pay it down and use it again. We offer competitive rates because your home is a great source of collateral. Take advantage of your investment today.
What is a Bridge Loan?
Presented by: Scott Hart, Senior Sales Manager, NMLS #: 526247
Video Transcript: A bridge loan simply liquidates the equity of your current home to use as a down payment towards the purchase or construction of your next home. Although not all bridge loans are created equal. At Waukesha State Bank, we have structured our program to tap into 90% of the appraised value of your home. And then after closing, you’ll make interest-only payments, making the transition into your next home much easier on your monthly budget.
What is the difference between a pre-qualification and a pre-approval?
Presented by: Craig Mariani, Mortgage Consultant, NMLS #: 282092
Video Transcript: One question I get asked a lot is, “What is the difference between a pre-qualification and a pre-approval?” Well, pre-qualification is an opinion made by a loan originator, such as myself, based on conversations had with borrowers. Often credit is pulled, sometimes documentation is reviewed, but for the most part the information provided by the borrower is verbal.
What is a pre-approval? On the other hand, a pre-approval is a credit decision made by an underwriter that can only be contingent upon a few items, such as the sale of a current home, appraisal, and no changes to the borrower’s situation. To get a verified pre-approval from Waukesha State Bank, a credit report, along with income and asset documentation, are submitted to an underwriter, who then verifies that that information is both accurate and adequate to approve an individual for a mortgage loan on any given property. A verified pre-approval gives a level of certainty that can help get accepted offers in this competitive real-estate market.
Why Waukesha State Bank? Here at Waukesha State Bank, we have all the standard agency and government loan products, but we also have a vast array of innovative portfolio loan products as well. And our on-staff, professional underwriters are experts in all of them. You can rest assured that a verified pre-approval from Waukesha State Bank will not be substandard or flimsy in any way. Your success is our success.
How does one get pre-approved for a Mortgage Loan?
Presented by: Jeff Burkhart, Mortgage Consultant, NMLS #: 277831
A pre-approval is an actual credit decision, made by an underwriter, that can only be contingent on a few items, such as the sale of a current home, the new home appraisal, and no other changes in the borrower's situation.
To get a "Verified" mortgage pre-approval from Waukesha State Bank, a borrower will submit his credit report, along with asset and income documentation. It is then submitted to one of our underwriters. The underwriter then verifies that all the information is accurate and adequate to approve the borrower for the loan. Pre-approvals provide a level of certainty that will help get accepted offers.
It is our goal, at Waukesha State Bank, to turn pre-approvals around as quickly as possible. Most pre-approvals can be completed within 1-2 business days.
What is a conforming loan?
Presented by: Lee Turner, Mortgage Sales Manager, NMLS #: 762383
The terms “conforming” and “conventional” are often used interchangeably, but there are some differences. All conforming loans are conventional loans, but conventional loans can be conforming or “non-conforming,” which means they either conform to Fannie Mae and Freddie Mac’s lending criteria, or they don’t.
What are the new conforming loan limits for 2024?
Each year, the Federal Housing Finance Agency sets new conforming loan limits, and in 2024 they will be $766,550 (up from $726,200 in 2023).
What do the new conforming loan limits mean for borrowers?
The new higher conforming loan limit means that now you can get a larger conventional loan while still benefiting from more flexible qualifying criteria and lower down payment options. To learn more, contact a Waukesha State Bank mortgage lender today.
What is Treasury Management?
Presented by: Claire Bessette, Vice President - Commercial Banking Officer
Video Transcript: Treasury Management consists of additional services that a bank offers to its business customers in the banking relationship. It can be divided into three different areas that have payment, collection and protection. Under the payment portion, we would offer services such as ACH, which is a way to make payments electronically while paying employees or vendor payments. Under the collection portion, we would use a service such as Remote Deposit Capture. This is a way to get your payments that you’re receiving into the bank quickly and safely. Under the protection piece, we offer services such as Positive Pay, which is a way to protect your checking account from fraud. Waukesha State Bank will review your accounts with you, along with the processes that you currently have in place. At that point, we would make recommendations to improve efficiency, save your company money, and to provide protection from fraud on your banking accounts. Our goal is to help you do what you do best, which is to run your business and let the bank do the rest.
What documents are needed to apply for a mortgage?
Presented by: Tim Lammers, Mortgage Consultant, NMLS #: 283401
Video Transcript: I am often asked what documents are required to apply for a mortgage. First of all, we’ll need your authorization to pull your credit, we’re going to look at your credit scores and also your credit profile. Next, we’re going to need to verify your income, so you will need to two years of W2s, your last two pay stubs and, if you’re self-employed, two years of business tax returns. Next, we will need to see where the downpayment money, reserves, closing costs are coming from, so we will need to see two months of checking and savings statements, investment and/or 401k statements. Next you will need to verify your identification, so we will need a copy of your driver’s license or your passport. Lastly, if you do have a property in mind, we will need to know the address and potential purchase price. Or, if you do have an accepted offer, we will need to see a copy of the signed purchase agreement. By providing all this documentation up front, it really speeds up the mortgage process and gets you closer to home ownership.
What is PITI?
Presented by: Kristen Bulfer, Mortgage Consultant - Team Lead, NMLS #: 1615477
Video Transcript: PITI stands for Principal, Interest, Taxes, and Insurance. It represents the four main components of your monthly mortgage payment. Let’s break it down.
- Principal is the portion of your loan payment that goes toward the existing mortgage balance.
- Interest is the cost of borrowing money from the lender, calculated as a percentage of the existing loan balance.
- Taxes are the property taxes that can be held in escrow by your lender to ensure timely payments.
- Insurance is your homeowners’ insurance and, if applicable, your private mortgage insurance. It protects both you and the lender in the event of damage or default.
When you make your monthly mortgage payment, it can include all these things, not just your principal and interest. Lenders often use PITI to assess your ability to repay and to determine how much you can afford. If you have questions on your PITI or need help your mortgage, contact Waukesha State Bank’s mortgage team. We’re here to assist you.
What is Loan-to-Value Ratio?
Presented by: Kristen Bulfer, Mortgage Consultant - Team Lead, NMLS #: 1615477
Video Transcript: Understanding your loan-to-value ratio can help with your mortgage application. The loan-to-value, or LTV, measures the amount you’re borrowing compared to the property’s value. To calculate it, divide your loan amount by the property’s appraised value and multiply by 100 to get the percentage. For example, if you’re purchasing a $300,000 home with a $240,000 loan, your LTV is 80%. A lower loan-to-value ratio usually means better loan terms and a lower interest rate because it represents less risk to the lender. A higher LTV can mean a higher rate or the need for private mortgage insurance. To summarize, your loan-to-value is a crucial factor in determining your mortgage terms and your ability to secure a loan. It helps a lender gauge their overall risk and can affect your overall borrowing costs. If you have questions about your loan-to-value ratio or questions about your mortgage, contact Waukesha State Bank’s mortgage lending team. We’re here to assist you.
How does a Construction Loan work?
Presented by: Jim Larcheid, New Construction Mortgage Consultants, NMLS #: 466342
Video Transcript: One common question I hear is, "How does a construction loan work?" There are many moving parts to a construction loan, so it's important, as early in the process as possible, to talk to a Waukesha State Bank mortgage consultant who can explain how everything comes together. When you build a new home, you have the lot, the house, the builder, and the equity in your current home—all of which factor into the equation. If you're doing a major remodel or an addition, you will have the project cost plus the current mortgage balance. When you build a new home, you'll either own the land or write an offer on the lot. You'll also sign a contract with the builder. The construction loan brings the land and the house together in one loan. Our bank will approve you for the loan and have an appraisal completed of the house to be built based on the blueprints from the contract. At the construction loan closing, we'll accomplish two key things: first, we'll pay off your land, and second, we'll establish what's called a construction escrow account, holding all the funds needed for your house to be built. As work progresses, your builder will request draws for payment, which you have to authorize first. Our bank will then work in tandem with a title insurance company, who will perform physical inspections of your site to verify completion. It’s a highly controlled and highly monitored process. A key thing to note is that during the build time, you're paying our bank just interest only—only on funds that have been disbursed to date. So, the construction loan really acts like a line of credit during the build time. Once the home is complete, our bank will work with you on the move to permanent financing. As you can see, a construction loan is quite a bit more involved than a mortgage for the purchase of an existing home. That's why it's very important to work with a reputable builder and Waukesha State Bank for the financing. Contact me anytime to discuss a new construction loan.
If you have questions about construction loan or questions about your mortgage, contact Waukesha State Bank’s mortgage lending team. We’re here to assist you.
What are Mortgage Points?
Presented by: Kyle Geis, Mortgage Consultants - Team Lead, NMLS #: 585582
Video Transcript: If you’re considering a mortgage, understanding mortgage points can help you make informed decisions about your loan. Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a lower interest rate on your mortgage. Essentially, you’re paying upfront to reduce the interest rate and, in turn, lower your monthly payments.
Here’s how it works: Each point typically costs 1% of the loan amount. For example, on a $200,000 mortgage, one point would cost $2,000. In return, your interest rate might be reduced by a fraction of a percent. This reduction can save you money over the life of the loan. Deciding whether to pay for points depends on your financial situation and how long you plan to stay in your home. If you plan to stay for a long time, paying points could result in significant savings on interest. If you’re planning to move or refinance in the near future, it might not be worth the upfront cost.
If you have more questions about mortgage points or want to see if they’re right for you, contact Waukesha State Bank’s mortgage lending team. We’re here to assist you.