What should I expect when buying a home?

Congratulations on your decision to buy a new home! We’ve outlined some important details you’ll need to know about the process:

What to plan for:

  • Make sure you’re pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.
  • Keep your realtor and lender informed of any questions or concerns as they develop.
  • Keep the process moving by providing documentation and decisions as soon as possible. By doing so, many of the details will be taken care of early in the process, adding to your comfort and peace of mind.
  • Enjoy purchasing your home but remain objective throughout to make decisions that are best for you.

Count On Your Gate City Bank mortgage lender to:

  • Assist you in selecting the best loan to meet your specific needs. (This can save you thousands of dollars throughout the years.)
  • Keep you informed of your loan status throughout the entire process.
  • Keep your realtor informed of our loan progress. (Note: Your personal information is always kept confidential between you and us; only deal points and progress are shared.)
  • Get the appropriate loan for you at the best rates and fees. This will save you significant money up front and throughout the years to come.

Related Questions

Great question! It’s an account used to pay for items related to your property, such as taxes and insurance, and is a calculated portion of your monthly mortgage payment.

Great news! There is no fee. Mortgage escrow accounts are maintained free of charge.

Your mortgage escrow payment is composed of three portions:

  1. The anticipated amount needed to make your tax and/or insurance payments in the coming year.
  2. A cushion to cover two months of anticipated payments.
  3. Catch-up amounts for a shortage (if applicable). A shortage occurs when the amount that was paid for taxes and/or insurance increased from what was anticipated. The anticipated amount is always the amount of the prior year’s payments.

We’re happy to help provide some clarity here! Some mortgage loans are required to have an escrow account, including the tax and/or insurance payments. Please contact us to discuss your options.

In general, any of the below conditions require you to have a mortgage escrow account:

  • If your loan-to-value (LTV) is over 80%
  • If your mortgage loan has an active private mortgage insurance (PMI) policy
  • If your mortgage loan has rural housing insurance
  • If you have a VA mortgage loan
  • If you have an FHA mortgage loan
  • If you have any late credit payments within the last 12 months
  • If your mortgage loan has required flood insurance, you must escrow for both the flood and homeowner's insurance

Unfortunately, this isn’t possible. Due to federal regulations, we’re required to refund you any surplus over $50 based on anticipated payments. If you are anticipating changes to your escrow account, please contact us so we may discuss further.

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