<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1457645420941593&amp;ev=PageView&amp;noscript=1">
FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Aurora

Burwell

Daykin

Diller

Fairmont

Fairbury

Geneva

Grafton

Grand Island

Hastings

Kearney

Odell

Ord LPO

Riverdale

Shickley

Update Your Preferences

First-Time Home Buyer’s Guide

Advice, Tools & Tips for the Home Buying Journey

Welcome - Your First Steps to Homeownership

First of all, and we want you to know this right away, you are not alone.

For starters, about 1.75 million homes across the country are sold to first-time home buyers every year. That’s a lot of homes. And a lot of first-time home buyers.

Rest assured, almost every single one of them started exactly where you are right now. Dipping their toes in the water. Doing a little reading and research. Poking around online. Trying to get comfortable with the idea.

Here in Nebraska, we’ve had a lot of positive experience with first-time home buyers. Smart, family-oriented, careful with a dollar... and slow to commit. Those are good Nebraska traits. And especially good for first-time home buyers.

We’ve also found our first-time home buyers to be thirsty for information, which is why we’ve put together this First-Time Home Buyer’s Guide. On the following pages, you’ll find advice, tools and tips to help you get started on your home buying journey. The guide will also refer you to a number of online decision-support tools available in the Mortgage Center here on our website.

Of course, you’re always welcome to pick up the phone and give us a call with any questions. We’ll be glad to hear from you. We’re your local community bank, and we’re here to help.

- Your friends at Heartland Bank

Want to download and view this later?

Simply click on the link below to download and save a PDF copy of the guide.

Download the Guide (PDF)

 
Section 1: Renting vs. Owning

renting-vs-owning-section-photo


What's Right for You?

If you’ve been thinking about buying your first home, then you’ve been wrestling with one of the toughest decisions you’ll ever make. The rent vs. own debate takes our emotions and our finances and mixes them together into a giant knot of conflicting desires.

“I’m happy where I am – let’s just keep renting.”

  • Renting is simple – You find a place you like, you sign a lease, you move in.
  • Renting is carefree – You don’t have to deal with upkeep and repairs – or utilities and property taxes.
  • Renting means freedom – You’re not tied down, and your time is your own.

“We’re wasting money on rent – I want to own a home.”

  • Owning helps you build wealth – Every time you make your mortgage payment, you build equity in your home and increase your net worth.
  • Owning comes with tax advantages – When you deduct mortgage loan interest and your property taxes, the tax savings can be huge, especially in the early years of your mortgage.

Is now the right time? 3 key questions to help you decide.

  • Do you see yourself moving within five years?
    If so, renting is probably your best option; most people lose money when buying and then quickly re-selling a home.
  • How’s your credit score?
    The higher your credit score, the better chance you have of qualifying for a mortgage loan and getting an attractive interest rate. Keep in mind a low credit score – by itself – won’t disqualify you. But you’ll undoubtedly end up with a higher interest rate.
  • Do you have money saved for your down payment?
    The more you can put down, the less you’ll need to borrow – which means your monthly payment will be lower and you’ll save money on interest over the life of your loan. If you can make a 20% down payment, you’ll also eliminate the expense of Private Mortgage Insurance, saving you even more money.

Small Steps – Talk with Friends and Family

Do you have friends or family who have just purchased a home? Were they happier renting? Do they like owning a home? Do they have any regrets? Do they have any advice for you? A friendly chat or two could help you decide whether or not you’re ready to buy.

Even if you decide against buying a home right now, improving your credit score and saving money for a future down payment will improve your overall financial health.

Section 2: Checking Your Finances

checking-your-finances-section-photo


How’s Your Credit Score?

First of all, you don’t have to have perfect credit to qualify for a mortgage loan. At the same time, with a strong credit history and a high credit score, you’ll have more options and a better chance of getting the lowest possible interest rate.

What is a credit score?

Your credit score is a three-digit number that reflects your credit history. It identifies you to lenders as having bad, fair, good or excellent credit.

What credit score do you need to have?

For first-time homebuyers, lenders consider various credit score benchmarks.

  • 740 - An ideal candidate for a conventional mortgage loan
  • 640 - Possibly qualified for a NIFA mortgage loan
  • 580 - Could be considered for an FHA

Why is your credit score so important?

Your credit score provides an easy way for lenders to judge how likely you are to make your mortgage payments in a timely manner.

How can you find out your credit score?

  • Discover Card – even if you’re not a cardholder – will provide you with a free credit score report at CreditScoreCard.com
  • Third-party websites like BankRate.com, Credit.com and CreditKarma.com all allow you a free look at your credit score
  • Ask your bank, especially if you have a credit card with them

What can you do to improve your credit score?

Your credit score is based on your credit history – for example, how much money you owe, how long you’ve owed it and if you pay on time. To improve your credit score:

  • Check your credit reports and make sure they’re accurate – once every 12 months, you can obtain your complete credit reports for free by visiting
    AnnualCreditReport.com
  • Pay your bills on time – this is the single most important factor impacting your credit score
  • If you are behind in payments, get current and stay current
  • Keep balances low on credit cards
  • Reduce and pay off any loan debt
  • Don’t apply for new credit cards that you don’t need

Small Steps – Find Out Your Credit Score

You can find out your credit score very easily. Check your credit card account online; it’s likely your bank already lets you view your credit score. Or visit CreditScoreCard.com for a free, no-obligation view of your credit score offered by Discover.

If your credit score is low, don’t get discouraged. A low credit score doesn’t disqualify you for a mortgage loan. It just means you need to improve your credit in order to get the best terms.

Section 3: Understanding What You Can Afford

understanding-what-you-can-afford-section-photo


Trust the Numbers

There’s a certain thrill to having your own place for the first time. But it’s certainly no fun later on, if your new home leaves you “short” every month and keeps you up at night with worry. So it’s important to figure out exactly what you can afford.

What should your goal be?

When it comes to your finances, your goal should be a mortgage loan payment (including principal, interest, property taxes and homeowners insurance) that you can comfortably pay every month.

How do you know if it will be comfortable or not?

Ideally, you want your total monthly debt (mortgage loan, auto loan, credit card and other debt) to be manageable. You want to be able to make all your payments, keep up with your living expenses and still have a little cushion at the end of the month to stash away. In most circumstances, that means a debt-to-income ratio between 35% and 40%.

Debt-to-Income Ratio Benchmarks

Your mortgage lender will look at your debt-to-income ratio (using your current gross income, monthly rent payment and other debt) to help determine how much you may be able to borrow. Some benchmarks your lender may use:


Debt-to-Income Ratio Benchmark
36% or Less Acceptable
37% to 40% Generally Acceptable
41% to 42% Questionable
43% or Higher Generally Unacceptable

Keep in mind, though, debt-to-income ratio is just one of the factors used in determining if you qualify for a mortgage loan. A higher debt-to-income ratio by itself won’t disqualify you.

Your Down Payment

If you’ve saved $10,000 for your down payment – that’s 10% down on a $100,000 house but only 5% down on a $200,000 house. Being able to put at least 10% down will require you to borrow less money and, in turn, give you a lower monthly payment.

Your Cash Reserves

Even after you’ve moved into your new home, you’ll want to have money left over as a buffer. A good rule of thumb is to have at least three to six months of living expenses in reserve.

What about the other expenses of owing a home?

Click on the graphic below to learn more about the other expenses that come with owning a home.

Small Steps – Figuring Out Your Debt-to-Income Ratio

It’s easy to figure out your debt-to-income ratio. The American Society of Certified Public Accountants provides a debt-to-income ratio calculator at FeedThePig.org. Use the calculator to experiment with different mortgage payments.

With a comfortable debt-to-income ratio, a good down payment and ready cash reserves you can be confident that, along with the thrill of owning your first home, you’ll also enjoy a sense of stability and financial security.

Section 4: The Down Payment

the-down-payment-section-photo


Tips for Saving Up

Saving up for the down payment is probably the most daunting task any first-time home buyer faces. Saving money takes discipline and patience. And it often means enduring some short-term pain in favor of long-term reward.

Know How Much You Need to Save

Down payment requirements vary, depending on your type of mortgage loan.

  • Conventional mortgages typically require as little as 3-5% down.
  • FHA loans require as little as 3.5% down.
  • VA and USDA loans require no down payment.

But remember – the less you put down the more you’ll need to borrow, the higher your monthly payment will be, and the longer it will take for you to build equity in your home.

Tips for Saving Up

  • Cut your rent – Move to a smaller apartment? Get a roommate? Move back home for a year while you save your paycheck? A dramatic change in your lifestyle could bring you a dramatic change in your savings.
  • Cut your credit card debt – If you have to use credit cards, try to pay off the entire balance each month to avoid interest charges.
  • Cut your spending – Look for ways to cut your monthly spending – perhaps canceling cable or subscription TV, going out less often or just guarding against mindless spending.
  • Find a second income – A part-time job, such as working at a home improvement store, will provide added income – and give you an opportunity to learn about home repair.
  • Automate savings contributions – Set up an automatic transfer into a money market account. Start small – say 2% of your monthly gross income – and gradually increase the percentage until you’re setting aside 10% or more.
  • Redirect your retirement savings – Reduce deposits into your IRA or 401(k) and redirect the difference into a money market account or traditional savings account.
  • Set aside refunds. The average federal income tax refund is over $3,000. Whatever you get back, set it aside.
  • Be open to help from the family – A lot of first-time home buyers get a little help with the down payment from parents or grandparents.

Small Steps – Automatic Savings Contributions

Open a money market or traditional savings account for your down payment savings. It won’t pay a lot of interest, but the money will be accessible to you anytime. Then establish automatic savings contributions into your new account. Start small, but aim for eventually saving 10% of your gross monthly income.

Section 5: A Quick Course on Closing Costs

a-quick-course-on-closing-costs-section-photo


Don’t Get Surprised

Closing costs represent one-time fees charged by your lender and other third parties in order to complete your real estate transaction. These fees can vary by lender, loan program, property location, seller agreement and other factors.

Loan Estimate

Once you qualify for a mortgage loan, your lender will provide you with a Loan Estimate (LE) of what your closing costs will be. The LE will give you an idea of how much money you will need to have available at closing – in addition to your down payment.

Closing Disclosure Statement

A few days in advance of closing, your lender will also provide you with a Closing Disclosure Statement detailing all of your closing costs. This document should closely match your LE and you should discuss any differences with your lender.

Lender Closing Costs

The closing costs typically charged by your lender will include:

  • Document preparation
  • Loan origination
  • Tax services

Depending on the timing of your closing relative to your first mortgage payment, your lender may also need to collect pro-rated insurance or property tax payments.

Third-Party Closing Costs

These are legitimate fees to ensure the value and legal transfer of property. You will typically notice fees for:

  • Appraisal
  • Attorney, closing or settlement
  • Credit report
  • Flood certification
  • Termite inspection
  • Title search/title insurance
  • Survey

How much should you anticipate paying?

Be sure to understand your LE. While typical closing costs hover around 2% of the purchase price of the property, they can sometimes be higher. You’ll be asked to bring a certified check on closing day to cover all closing costs.

Is there any way you can reduce this expense?

  • Ask your loan officer – Your institution may be offering specials on closing costs
  • Negotiating with your seller – Your seller may be willing to share closing costs
  • Rolling it into the mortgage loan – Some mortgage loan programs allow you to include closing costs in your loan amount

Small Steps – Explore Closing Cost Experiences

Your lender will work hard to make sure you understand your closing costs. Another way to prepare is to talk with family or friends, especially those who’ve recently purchased homes. How did they handle closing costs? And would they have any advice for you?

Section 6: Getting Pre-Qualified


The Essential Step

The symptoms are easy to spot. You’re spending all your time online, checking out real estate listings, clicking through home photo galleries and maybe wondering, “What in the world is a Walk Score?” Before you know it, you’re attending open houses and giving your name and number to real estate agents.

Cool That Fever

It might be best, though, to cool that house fever for just a bit – and take the time to get pre-approved for a mortgage loan. Pre-qualification is the one step in the home buying process that will make every other step easier.

What is pre-qualification?

Getting pre-qualified means a lender has actually checked your credit, verified your employment and reviewed your financial statements. Once you are pre-qualified, you’ll get a “letter of pre-qualification” stating you qualify for a certain loan amount.

Pre-Qualification is Free, With Absolutely No Obligation

These days, all mortgage lenders offer free pre-qualifications. Plus, you don’t have to actually take out a loan or even buy a house. If you want, you can view it as a practice run for later on.

Pre-Qualification Makes Everything Easier

You’ll get an idea of what loan amount you qualify for – and understand what houses are truly in your price range. You’ll be able to show real estate agents and sellers you’re a credible buyer. Plus, you’ll speed up final approvals and closing.

What You’ll Be Asked to Provide:

  • Proof of Income
    • W-2 statements from the past two years
    • Tax returns from the past two years
    • Pay stubs showing income and year-to-date income
  • Proof of Assets
    • Bank statements
    • Investment account statements
  • Identification & Permissions
    • Driver’s license
    • Social Security Number
    • Permission to pull credit reports and verify employment

What if you can’t get pre-qualified?

Find out from your lender what you need to improve. You may need to correct errors on your credit report, improve your credit score, decrease your debt or save more for your down payment.

Small Steps – Assemble Your Documents

Do the prep work for getting pre-qualified. Assemble the documents listed above. It may seem tedious, but it’s necessary. Remember, millions of first-time home buyers survive this boring part every year. And you can, too. We offer a FREE pre-qualfication checklist to help you get prepared.

Section 7: Mortgage Application Checklist

mortgage-application-checklist-section-photo


Getting Your Documents Together

If you’ve worked through the pre-approval process, then you already have most parts of the required documentation assembled and submitted. But there are a few additional categories of information needed once you’re ready to buy.

Income, Asset and Employment Information

  • Pay stubs or proof of direct deposit
  • Bank or other asset statement for the last two months
  • Copy of your offer letter or contract (if starting a new job)
  • VA Certificate of Eligibility (for VA loans only)
  • Federal tax returns from the past two years
  • Employment history for the past two years
  • Federal W-2s (wage and tax statement) for the past two years
  • Social Security, pension or retirement benefit award letter (if applicable)
  • Proof of alimony, child support or separate maintenance income (if using to qualify)
  • Copy of the divorce decree or separation agreement (if applicable)

If You Are Self-Employed

  • Individual, corporate or partnership tax returns from the last two years, including all schedules (federal only)
  • Current profit and loss statement showing year-to-date revenues and expenses (if applicable)

Credit Information

  • Verification of rent or cancelled rent checks
  • Written explanation of any recent credit report inquiries or late payments on your credit report
  • Bankruptcy discharge and schedule of creditors (if applicable)
  • Addresses of all real estate you own and mortgage lender information
  • Alimony, child support or separate maintenance payment amount (if applicable)

Property Information

  • Address and sales price of the purchase property
  • Verification of the source of down payment funds
  • Property type (single-family home, condominium, townhouse, etc.)
  • Copy of the signed purchase agreement
  • Your homeowner insurance agent’s contact information    
  • Copy of the cancelled earnest money deposit check and verification that it cleared

Small Steps – Organizing Your Files

Once you’ve assembled all of your documentation and information, be sure to make copies of everything to keep for yourself. As you go through this process, keep in mind this thoroughness protects you as much as it protects the lender. With proper documentation, you’re verifying your ability to make a down payment, while still have cash reserves to make your monthly payment and make ends meet every month.

Section 8: Selecting a Mortgage

selecting-a-mortgage-section-photo


Know Your Options

Admit it – you’ve got a picture in your head of your ideal home. Maybe it’s a ranch style with a huge backyard or a two-story with an ultra-modern kitchen. Even if it’s in the most general terms, you know what you want.

Picture Your Mortgage Loan

Now admit it – when it comes to your mortgage loan, the picture in your head is a little less clear. You’re just hoping for a low monthly payment. But to make sure you end up with the best possible loan, it’s important to know your options.

Fixed-Rate vs. Adjustable-Rate

With a fixed-rate mortgage, your interest rate and monthly payment (principal and interest) remains constant. With an adjustable-rate mortgage, whenever your interest rate goes up or down, your monthly payment also goes up or down. Most home buyers opt for a fixed-rate mortgage and the peace of mind that comes from a predictable monthly payment.

15-Year vs. 30-Year Terms

  • With a 15-year loan, monthly payments are usually higher – but you’ll pay less interest over the life of your loan and build equity quicker.
  • With a 30-year loan, your monthly payments are usually lower – but you’ll pay more interest over the life of your loan and build equity slower.

Lowering the Costs of a 30-Year Term

If you opt for a 30-year term to get the lowest monthly payment, you always have the option of paying a little extra toward the principal each month. This helps you build equity faster, reduces the total interest on your loan and may reduce your total number of payments.

First-Time Home Buyer Programs

There are options beyond conventional and new construction mortgage loans. Your lender can help determine if you qualify for special first-time home buyer programs.

  • VA Loans
    • No down payment
    • No mortgage insurance
    • Flexible qualification guidelines
  • FHA Loans
    • Low down payment
    • Low interest rate
    • Closing costs included in loan
  • NIFA Loans
    • Low or no down payment
    • Low interest rate
    • Debt-to-income ratio up to 45%
  • USDA Loans
    • No down payment
    • Low interest rate
    •  Some property location requirements

Small Steps – Comparing Terms

Use the Online Calculator provided by Heartland Bank to compare 15-year and 30-year terms. Learn what your monthly mortgage payment might be, along with other helpful information, including how quickly you’ll build equity in your new home.

Section 9: Two Key Advisors

two-key-advisors-section-photo


Your Buyer Agent & Your Loan Officer

Buying your first home can be very stressful. That’s why it’s best not to go it alone. You need experienced, trusted advisors by your side, people who can help you find the right home and make a sound financial decision.

The Buyer Agent

Most real estate agents represent both sellers and buyers. In some instances, they’re the listing agent – the name you see on the yard sign of a home for sale. In other instances, they’re helping buyers find and purchase a property. You’ll want to carefully select one to work for you exclusively as a buyer agent.

The Loan Officer

It’s easy to get caught up shopping for a loan. You might spend a lot of time researching types of mortgages and checking interest rates. Instead, look around for an experienced mortgage loan officer – someone who specializes in helping first-time home buyers. The right loan officer will save you a lot of legwork and worry.

What to Expect from Your Buyer Agent

A good buyer agent advocates on your behalf throughout the process.  For example, a good buyer agent:

  • Helps you understand the home buying process
  • Finds properties and schedules tours
  • Helps you determine what your offer should be
  • Prepares and presents offers
  • Negotiates price and terms on your behalf
  • Handles numerous forms and disclosure statements
  • Schedules and supervises property inspections
  • Provides advice regarding necessary improvements and repairs

What to Expect from Your Loan Officer

A good loan officer will do a lot more than assist you with filling out your application. For example, a good loan officer:

  • Evaluates your overall financial condition
  • Provides advice on how to improve your creditworthiness
  • Educates you on any special mortgage loan programs that fit your situation
  • Offers promotional specials on closing costs or interest rates
  • Gathers documentation and orders property appraisals
  • Represents your application within the lending institution
  • Advocates on your behalf with underwriting, in light of any extenuating circumstances

How Do You Find Them?

Most people find their buyer agent or loan officer through referrals from friends, family or other advisors. You can also check out online listings and customer reviews. Look for local experience with first-time home buyers – and for references (including names and phone numbers) from satisfied customers.

Small Steps – Identify Three Potential Buyer Agents

Put together a list of three potential buyer agents for you to interview. Check out NAEBA.org (from the National Association of Exclusive Buyer Agents) to see if there’s an exclusive buyer agent in your market. Then talk with friends, family and other advisors for their suggestions.

Section 10: What to Expect at Closing

what-to-expect-at-closing-section-photo


And What to Bring with You

“Closing” sounds kind of scary. Well, if not scary then at least final – and it is, for both you and the seller. At closing, you sign all the paperwork finalizing the purchase of your new home. At the end, you get the keys to your new place. That’s where scary gives way to exciting.

Technically, what is a closing?

A closing is simply a meeting in which you sign all of the documents required to formally take possession of your new home.

Where do we meet?

The closing usually takes place at the mortgage lender’s office. Some take place at the real estate agent’s office or even at the title and escrow company.

How long does it take?

Usually just an hour, but it can take longer. Be sure you don’t try to do it over your lunch hour – it’s not quite that snappy.

Who will be there?

Most often, the people who attend the closing include:

  • The buyer and the buyer agent
  • Escrow company
  • The mortgage loan officer

What happens at closing?

Your mortgage loan officer or a closing agent will run the meeting. They will have you review and approve numerous documents. They will explain each item before you sign it. For example:

  • Final mortgage papers
  • Title forms
  • Tax forms
  • Affidavits
  • Deed of Trust
  • Promissory Note
  • Disclosure Statements

What to bring?

  • All buyers whose names will appear on the property title need to bring government-issued photo identification (e.g., driver’s license)
  • Cashier’s or certified check for your down payment
  • Cashier’s or certified check for your closing costs
  • Personal check to cover any last minute corrections or changes

Small Steps – You’re Home!

Once you’ve made it through closing, you’re home! You’ll have the keys to your new place. If the closing meeting left you a little stressed or overwhelmed, don’t worry about it. Those feelings will disappear once you’ve opened the door to your new place. Congratulations!

Becoming a Homeowner

becoming-a-homeowner-section-photo


You Can Do It!

Few feelings rival the excitement of moving into your first home.

Every year, nearly two million first-time home buyers get to experience that excitement – after, of course, making it through all the stress and strain that goes along with buying a home.

We hope this First-Time Home Buyer’s Guide has helped ease some of the anxiety you may be feeling. Getting the facts and getting informed are great strategies, not only for battling worry, but also for making good financial decisions.

With that in mind, if you have questions this guide didn’t address, feel free to give us a call at 800-759-3119. We’ll be happy to hear from you.

- Your friends at Heartland Bank

Online Decision-Support Tools

In addition to this First-Time Home Buyer’s Guide, Heartland Bank offers a number of online decision-support tools to assist you through the home buying process.

You’ll find all of these tools at MyHeartlandBank/Personal/Mortgage-Loans.com.

Glossary

Mortgage & Home Buying Terminology

  • Adjustable-Rate Mortgage: With an adjustable-rate mortgage, your interest rate may go up or down at pre-determined periods – usually once per year. When your interest rate goes up or down, your monthly mortgage payment also goes up or down.
  • Closing: At closing, the final step in taking ownership of your purchased property, you sign legal documents, pay any down payment or closing costs, and receive the keys to your new home.
  • Closing Costs: Closing costs are the fees from your lender or third parties for services involved in the transfer of property, such as appraisals, inspections and title searches.
  • Closing Disclosure Statement: A few days before closing, your lender will provide you with a Closing Disclosure Statement detailing your exact closing costs.
  • Credit Report: Three independent reporting agencies (Experian, TransUnion and Equifax) provide credit reports, which include your credit and payment history and current debt. 
  • Credit Score: Based on your credit report, your credit score is a three-digit number representing your creditworthiness – the likelihood lenders would want to loan you money. Your credit score identifies you as having bad, fair, good or excellent credit. 
  • Debt-to-Income Ratio (DTI): Divide your total recurring monthly debt by your gross monthly income to calculate your debt-to-income ratio. Lenders look at your DTI to help gauge your ability to manage monthly payments.
  • Down Payment: The down payment is the upfront payment you make toward your new home.
  • Earnest Money: The seller may ask for an earnest deposit, to demonstrate that you are serious (earnest) about purchasing the property. It counts toward your down payment.
  • Equity: Equity is the percentage or amount of your home you own, calculated by subtracting your outstanding mortgage balance (principal only) from the fair market value of your home.
  • Fixed-Rate Mortgage: With a fixed-rate mortgage, your interest rate stays the same for the life of your loan, as does your monthly mortgage payment (principal and interest).
  • Homeowner’s Insurance: Your homeowner’s insurance provides coverage for your property against things such as fire, theft and storm damage. The cost is usually included in your monthly mortgage payment.
  • Loan Estimate: Your lender will provide you with a Loan Estimate (LE) of what your closing costs will be to obtain a loan and purchase a specific type of property.
  • Money Market Account: A money market account is an interest-bearing account which typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability.
  • Mortgage Insurance / Private Mortgage Insurance (PMI): If you pay less than 20% down, you’ll be asked to pay for PMI, which protects the lender in case you default on your loan. PMI is usually included in your monthly mortgage payment. This fee can be eliminated and your payment reduced once you achieve 20% equity in your home.
  • NIFA Loan: A mortgage loan insured by the Nebraska Investment Finance Authority (NIFA), which offers favorable terms for first-time home buyers.
  • Principal: Principal is the amount of money you’ve borrowed for your mortgage loan.
  • Term: Term refers to the number of years you have to pay back your mortgage loan, most commonly 15 or 30 years.
  • USDA Loan: A mortgage loan insured by the United States Department of Agriculture (USDA) to promote home ownership within rural or low-to-moderate income neighborhoods. This type of loan also has property eligibility requirements.
  • VA Loan: A mortgage loan insured by the U.S. Department of Veterans Affairs (VA) for eligible American veterans or their surviving spouses. VA Loans require no down payment and no mortgage insurance.

Get Pre-Qualified Today!

When you're ready to buy, you need to be ready to move. Get pre-qualified online and move one step closer to the home of your dreams.

Apply online
logo-fdic.svg   logo-ehl.svg
© 2025 Heartland Bank

Internet Explorer 10 Support Notice

Due to recently increased security requirements, we at Heartland Bank are no longer able to support version 10 or older of Internet Explorer. We are sorry for this inconvenience, and encourage you to upgrade to more secure options such as Internet Explorer 11, Google Chrome, or Mozilla Firefox.

Upgrade to Internet Explorer 11
You’re about to leave Heartland Bank to visit our trusted partner site. We included this resource on our site because we think you’ll find the information relevant to what you’re looking for. However, since it’s not operated by Heartland Bank, we can’t be accountable for the content you find there. If you have any concerns about the site you’re visiting, we encourage you to read and evaluate the privacy and security policies of the site, just in case it differs from Heartland Bank’s. Ready to go?
Yes, Let's Go!