Helping you make it home.
Buying a home is the biggest investment most families will make, and homeownership is one of the most rewarding experiences of your life. Having the right mortgage is key. Stock Yards Bank & Trust offers a wide variety of mortgage services for new and repeat homebuyers. Our experienced mortgage bankers will discuss appropriate alternatives with you and help you select the mortgage that is the best fit for you. Whether you are buying a starter home, upgrading to accommodate a growing family, or looking for the perfect place to spend your retirement years, we can help.
|Mortgage Type||Great for you if...|
|Fixed-Rate Mortgage||You are looking for a fixed and steady monthly mortgage payment for the term of the loan.|
|Adjustable-Rate Mortgage||You would like the ability to purchase a larger home or would prefer lower initial payments.|
|Jumbo Loan||You need to borrow amounts in excess of the conforming loan amounts allowed by FNMA and FHLMC.|
|FHA Loan||You want to purchase a home with a lower down payment or if you require flexible guidelines.|
|VA Loan||You are a veteran looking to purchase a new home or refinance your existing home.|
|Construction or Lot Loan||You are building a home.|
|Home Equity Loan or Line of Credit||You have enough equity in your home; you may qualify for a home equity loan or line of credit for home improvements, debt consolidation, or other purposes.|
How do I know if I’m ready to buy a home?
- Do you have a steady source of income (usually a job)?
- Have you been employed on a regular basis for the last 2-3 years?
- Is your current income reliable?
- Do you have a good record of paying your bills?
- Do you have few outstanding long-term debts, like car payments?
- Do you have money saved for a down payment?
- Do you have the ability to pay a mortgage every month, plus the additional costs associated with homeownership (taxes, insurance)?
If you can answer “yes” to these questions, you are probably ready to buy your own home. Use our simple Mortgage Calculators to determine the size of mortgage you can afford.
Are there special mortgages for first-time homebuyers?
Yes. We offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.
What do I need to take with me when I apply for a mortgage?
If you have everything with you when you visit with us, you’ll save a good deal of time. You should have:
- Social security numbers for both you and your spouse if both of you are applying for the loan
- Copies of your checking and savings account statements for the past 2 months
- Evidence of any other assets like bonds or stocks
- Two most recent consecutive paystubs and two most recent W2's detailing your earnings
- A list of all credit card accounts and the approximate monthly amounts owed on each
- A list of account numbers and balances due on outstanding loans, such as car loans
- Copies of your last 2 years’ income tax statements
- The name and address of someone who can verify your employment
- Your loan officer will inform you if any additional information is needed
How do you determine the maximum loan amount that you can afford?
According to general calculations, your mortgage payments should be no more than 29% of gross income. The mortgage payment, combined with non-housing expenses, should total no more than 41% of income (however, depending on your specific loan scenario, you may qualify with a combined debt to income ratio as high as 50%).
To assess maximum loan amount, one of the factors we consider is your debt-to-income ratio. This is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include long-term debts like car or student loan or credit card payments, alimony, or child support. We also consider the amount of cash you have available for down payment and closing costs and your credit history.
How large does my down payment need to be?
When considering the size of your down payment, consider that you’ll also need money for closing costs, moving expenses, and possibly, repairs and decorating. There are mortgage options now available that only require a down payment of 3% or less of the purchase price.
The larger the down payment, the less you have to borrow, and the more equity you’ll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy, called Private Mortgage Insurance (PMI), to secure the loan.
How much money will I have to come up with to buy a home?
This expense depends on a number of factors, not just the cost of the house and the type of mortgage you would like. You should plan to come up with enough money to cover three costs: earnest money – the deposit you make on the home when you submit your offer (to prove to the seller that you are serious about wanting to buy the house), the down payment (a percentage of the cost of the home that you must pay when you go to settlement), and closing costs (the costs associated with processing the paperwork to buy a house.)
You will pay the closing costs at settlement. This amount averages 3-4% of the price of your home. These costs cover various fees and processing expenses. When you apply for your loan, we will give you an estimate of the closing costs, so you won’t be caught by surprise.
What is "loan to value" (LTV) and how does it determine the size of my loan?
The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay,$2,500 as a down payment.
The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV the less cash home buyers are required to pay out of their own funds. To protect lenders against potential loss in case of default, higher LTV loans (80% or more) usually require a mortgage insurance policy.
When do ARMS make sense?
An ARM may make sense If you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren’t concerned about potential increases in interest rates.
What are discount points?
Discount points allow you to lower your interest rate. They are essentially prepaid interest, with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax-deductible when you purchase a home, and you may be able to negotiate for the seller to pay for some of them.
What is an escrow account? Do I need one?
Established by your lender, an escrow account is a place to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner’s insurance, mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure money will always be available for these payments. If you use an escrow account to pay property tax or homeowner’s insurance, make sure you are not penalized for late payments since it is the lender’s responsibility to make those payments.
What is a Loan Estimate, and how does it help me?
It’s an estimate that lists all fees paid before closing, all closing costs, and any escrow costs you will encounter when purchasing a home. The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan. See Borrower’s Rights.
What is PMI?
PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI’s usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower, and they insure loans that exceed the FHA limit.
How does mortgage insurance work? Is it like home or auto insurance?
Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency. If a borrower can’t repay an insured mortgage loan as agreed, the lender may foreclose on the property and file a claim with the mortgage insurer for some or most of the total losses.
This may be the largest and most important loan you get during your lifetime. You should be aware of certain rights before you enter into any loan agreement.
You have the right to:
- Shop for the best loan for you and to compare the charges of different mortgage loan officer and lenders.
- Be informed about the total cost of your loan including the interest rate, points and other fees.
- Ask for a Loan Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
- Know what fees are not refundable if you decide to cancel the loan agreement.
- Ask your mortgage loan officer to explain exactly what the mortgage broker will do for you.
- Know how much the mortgage loan officer is getting paid by you and the lender for your loan.
- Ask questions about charges and loan terms that you do not understand.
- A credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, whether any income is from public assistance, or the fact that you have in good faith exercised any right under the Consumer Credit Protection Act.
- Know the reason if your loan was turned down.
- Ask for the CFPB, Step by Step Guide, Your Home Loan Toolkit
Equal Housing Lender
The Fair Housing Act prohibits discrimination in housing because of:
- Race or color
- National origin
- Familial status (including children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18)
What Housing Is Covered?
The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a broker and housing operated by organizations and private clubs that limit occupancy to members.
What Is Prohibited?
In the Sale and Rental of Housing, no one may take any of the following actions based on race, color, national origin, religion, sex, familial status, or handicap:
- Refuse to rent or sell housing
- Refuse to negotiate for housing
- Make housing unavailable
- Deny a dwelling
- Set different terms, conditions, or privileges for sale or rental of a dwelling
- Provide different housing services or facilities
- Falsely deny that housing is available for inspection, sale, or rental
- For profit, persuade owners to sell or rent (blockbusting) or
- Deny anyone access to or membership in a facility or service (such as multiple listing service) related to the sale or rental of housing.
In Mortgage Lending, no one may take any of the following actions based on race, color, national origin, religion, sex, familial status, or handicap:
- Refuse to make a mortgage loan
- Refuse to provide information regarding loans
- Impose different terms or conditions on a loan, such as different interest rates, points, or fees
- Discriminate in appraising property
- Refuse to purchase a loan or
- Set different terms or conditions for purchasing a loan
In Addition, it is illegal for anyone to:
- Threaten, coerce, intimidate or interfere with anyone exercising a fair housing right or assisting others who exercise that right
- Advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.
Anyone who feels he or she has been discriminated against may file a complaint of housing discrimination by calling 1-800-669-9777 (toll-free) or 1-800-927-9275 (textphone for the deaf), or by contacting the U.S. Department of Housing and Urban Development Assistant Secretary for Fair Housing and Equal Opportunity, Washington, D.C. 20410.
Successor In Interest Information
A successor in interest is a person to whom an ownership interest in a property securing a mortgage loan is transferred from the original borrower. This may occur as a result of devise (i.e. a will), laws of descent, or other operation of law (i.e. a court order).
To be covered, this may happen in one of the following ways:
- A transfer to a relative resulting from the death of an original borrower;
- A transfer resulting from a divorce, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;
- A transfer where the spouse or children of the borrower become an owner of the property;
- A transfer upon the death of a joint tenant or tenant by the entirety;
- A transfer into a living trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.
A successor in interest becomes confirmed once the Bank has verified the person's identity and their ownership interest in the dwelling.
Successors in interest have certain rights under Federal law related to the mortgage loan secured by their primary residence.
If you believe you are a successor in interest, we will need to collect certain documents from you and confirm your identity before we can disclose information to you concerning the mortgage.
Please gather the appropriate documents and fill out the “SII Cover Letter” and “SII Identification Form” to begin the process (links below). There are lists provided below that detail what documents are required based on your situation (one of the five circumstances numbered above).
Once you have gathered the documents, bring them and the completed forms to your nearest Stock Yards Bank & Trust location. You will need to speak with a service associate for identity verification. The other documents may be mailed to:
Stock Yards Bank & Trust
Attn: Managed Assets
P.O. Box 32890
Louisville, KY 40232
(or fax the documents to 502-625-2287, Attn: Managed Assets)
Your identity must be verified in person by an employee of the bank.
SII Cover Sheet
SII Identification Form
SII Required Documents (Death of a Relative)
SII Required Documents (Divorce or Legal Separation)
SII Required Documents (Transfer from Living Parent or Spouse)
SII Required Documents (Joint Tenant or Tenant by the Entirety)
SII Required Documents (Transfer to Living Trust)
Forms and Documents