We have the expertise – and will take the time – to lead you through the home loan process. You can be assured we'll be with you step-by-step ... from the day you apply for your loan to the moment you're holding the keys to your new home. In five basic steps, here's what you can expect:

STEP 1: Meet With A Loan Representative
A Community South loan representative will meet with you to explain everything to expect in buying a home. We'll meet at a time and location that's convenient for you, and will answer many of your questions. To get the greatest benefit from this initial meeting, please bring the following:

• Income/Expenses – Accurate list of monthly/annual household income and expenses.
• Bank Accounts – Savings, checking and CD account balances.
• Loans – Balances due to banks, finance companies and others.
• Credit Cards – List of all balances and bring copies of most current statement(s).
• Equity In Your Home – If you own your residence, equity is the difference between what your house is worth and what you owe. Copies of the most recent property tax assessment and monthly mortgage statement would be helpful.
• Tax Returns – Most recent Federal Income Tax return.

STEP 2: Pre-Qualify For Your Loan...
Then Go House-Hunting
An important step in purchasing a home is determining what you can afford to spend on the monthly mortgage payment. That amount depends on your employment status, current debt, family size and other factors. We will quickly evaluate your financial situation and give you an on-the-spot estimate of what you can afford. Then, you'll be ready to shop for only the homes that are in your price range ... saving you time, effort and money.

STEP 3: Apply For Your Loan
During the initial meeting with your loan representative, you'll receive a loan application that requests additional financial, employment and personal information. The more complete you are in supplying this information, the faster we'll be able to process, approve and close on your loan. Once we have all the required information, your Community South loan representative can usually provide your loan approval status within 24-hours.

Your loan representative will ensure you apply for the right type of loan by explaining your options, such as a fixed-rate versus an adjustable-rate mortgage. We'll also help you explore special loan programs such as VA, FHA and THDA (see full descriptions under the "Types of Loans" section of this page). We'll work closely with you to customize a mortgage that's right for you!

STEP 4: Consider All The Costs
Once you've decided on the home you desire, you need to be fully aware of expenses beyond your monthly mortgage such as property taxes, insurance and utilities. For estimates of these expenses, ask the present owners or your real estate agent. You can verify property taxes through the local tax assessor's office. Also, contact your insurance agent to obtain an estimate for homeowner's coverage. Pass this information to your loan representative for review before you sign a real estate contract.

Community South will also make sure you fully understand your closing costs prior to your loan closing so you can plan expenses – and avoid last-minute surprises. Closing costs vary depending on financing, but they generally include items such as: Down payment, appraisal fees, prorated property taxes and insurance, attorney's fees and lender's fees/expenses.

STEP 5: The Loan Closing
The final stage in the loan process is the Loan Closing. It's the date on which the title for the property passes from the seller to the buyer ... the day you take legal ownership of your new home. During closing, all details are finalized, checks are exchanged, paperwork is completed, fees are paid and you receive the deed to your property. The meeting could take place at the bank or an attorney's office.

Fixed Versus Adjustable Rate

• Fixed-Rate Mortgage – This type of financing features an interest rate that is set for the life of the loan offering predictable monthly payments. This loan usually has a higher interest rate than an adjustable-rate mortgage.
• Adjustable-Rate Mortgage (ARM) – ARMs normally start with an interest rate that's lower than fixed rate mortgages. But the interest rate (and your monthly loan payment) will move up or down according to market conditions. Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.

Special Home Loan Financing
Community South offers several government-sponsored home ownership lending programs. These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. Here are a few examples:

• Federal Housing Association (FHA) Loans – These loans offer the benefit of a low, three-to-five percent down payment. And sometimes, closing costs can be included in the loan amount to further reduce up-front costs.
• Veterans Affairs (VA) Loans – VA loans make 100 percent financing available to qualified military veterans with at least six months of active duty. This loan also is available to the unmarried spouse of a deceased veteran whose death was service related, or spouse of an MIA or POW.
• Tennessee Housing Development Association (THDA) Loans – First-time buyers, or those who have not owned a home within at least three years, may qualify for these lower-down-payment loans (financing is subject to the availability of state funding).

Construction Loans
If you're building a home, a construction loan can be an ideal source of cash through the building process. Interest rates are competitive and closing costs are minimal. And you won't pay any interest until the funds are drawn or used, giving you a convenient and affordable way to meet ongoing building expenses. And when construction is completed, your Community South loan representative can help you select the most convenient and affordable permanent financing for you.

Refinance ... And Save!
When interest rates drop by at least 1.5 percent below your existing loan rate, you may be able to save money by refinancing your loan. Contact Community South to help you determine if refinancing can help you:

• Reduce Your Interest Rate – A lower interest rate can mean lower payments.
• Reduce Your Mortgage Term ... And Pay Off The Loan Faster – Refinancing to a shorter term mortgage can save you thousands of dollars in interest charges over the life of the loan.
• Convert Your Home's Equity Into Instant Cash – Borrowing against the equity in your home can be a low cost and often tax deductible way to get extra money (consult a tax adviser regarding the deductibility of interest). Plus, mortgage interest rates are usually lower than other types of consumer loans.