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MORTGAGE GUIDE it
Brentwood Bank Mortgage Guide
At Brentwood Bank, we know that when you’re ready to buy a home, you’ve got a lot to consider.
Whether you’re a first-time homebuyer or an experienced homeowner, Brentwood Bank’s Home
Mortgage Guide offers everything you need to know as you prepare to make the biggest purchase of
your life!
 What can you afford?
 Home price that is realistic and affordable.
 What does my credit score mean?
 Borrower’s checklist for a mortgage application.
 How to apply. What to expect.
 Step-by-step mortgage application process.
 Do’s and Don’ts.
 Common Mortgage Questions
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What can you afford?
A good rule of thumb is to keep within these limits:

43% goes to pay debts.
Banks generally advise that your mortgage
payment not exceed 33% of your gross monthly
income, leaving 10% for other debts like a car
loan.

31% of your income goes toward taxes.
That is the national average.

26% goes toward everything else.
Food, clothes, entertainment, vacations, as well
as savings and investments that you put away for
a rainy day.
Home Price That’s Realistic And Affordable
The chart below will help you find a price of a house and a monthly payment you think you can
comfortably afford.
Purchase Price of
Home
20% Down Payment
Monthly Principal and
Interest*
Loan Amount
$
100,000
$
20,000
$
80,000
$
429.46
$
150,000
$
30,000
$
120,000
$
644.19
$
200,000
$
40,000
$
160,000
$
858.91
$
250,000
$
50,000
$
200,000
$
1.073.64
$
300,000
$
60,000
$
240,000
$
1,288.37
$
400,000
$
80,000
$
320,000
$
1,717.83
$
500,000
100,000
$
400,000
$
2,147.29
$
*The chart estimates the monthly principal, and interest. Property taxes and homeowners insurance are paid separately. The
monthly payment is assuming a 20% down payment and a 30 year fixed rate mortgage at 5%.
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412.409.BANK (2265)
How much can you spend on housing based on some common guidelines:
Enter your monthly gross
income (before taxes)
$____________
Multiply your monthly gross
income X .43
$___________=
Common guideline for the
maximum monthly debt
you should have, including your
new mortgage payment.
Multiply your monthly gross
income X .33
$___________=
Common guideline for the
maximum monthly mortgage
debt you should have
EXAMPLE (Using a gross income of $36,000/yr.)
Enter your monthly gross income
(before taxes)
$
36,000
Multiply your monthly gross income x .43
$
1,290
Multiply your monthly gross income x .33
$
990
Rule of Thumb
43% of income should go to pay debt.
You’ll also want to consider how much of your monthly income you are comfortable devoting
to your house payment and how much you’ll have left over after purchasing your home.
Brentwoodbank.com
412.409.BANK (2265)
What Does Your Credit Score Mean?
A credit score is a number calculated using information from your credit history. A credit score
represents your creditworthiness and indicates the likelihood that you will repay a debt as agreed. Credit
Scores are widely used by lenders. A higher credit score increases your chances of getting approved for
a loan and obtaining the best interest rate.
Here are ways that you can improve your credit score.
1. Understand your credit score.
You are entitled to a free credit report once a year. Go to Annualcreditreport.com to pull your
report.
2. Pay your bills on time.
Sounds simple enough, but if you have trouble remembering this task, consider setting up email or
text payment reminders with your creditors, or automatic bill payment.
3. Pay at least the minimum on your credit card bill.
Pay more if you can.
4. Correct errors on your credit report.
Look for things like incorrect listed late payments; contact the three credit rating agencies if you see
discrepancies.
Equifax at Equifax.com
TransUnion at Transunion.com
Experian at Experian.com
5. Reduce your debt.
Create a plan to pay off your highest interest rate debts first while maintaining minimum payments
on your other accounts.
Visit equifax.com for more information on how to improve your credit score and pay off debt.
Brentwoodbank.com
412.409.BANK (2265)
Borrower’s Checklist For Mortgage Application ?
The following checklist is an outline of documents that will be required of you at the time of application.
This is just a guideline. You may be asked for additional documents depending on circumstances.
After we receive your completed application, we will request the following documents:
Home Purchase
Signed Authorization to Release information form
Signed copies of last two years IRS tax returns complete
with W-2's and all schedules for each borrower.
Copy of most recent pay stubs for last 30 days showing
year to date earnings and pay period.
Copy of last 3 months statements for all bank accounts and
investments.
Copy of Sales Agreement
Refinancing (all of the above plus the following):
Refinancing
Statement of real estate taxes
Copy of Deed to Property
For new construction (all of the above plus the following):
New Construction
Copy of Sales Agreement or Deed for the Lot
Copy of Building Contract and Price
Copy of Plans and Specifications
Copy of Survey
Estimate of yearly real estate taxes when completed
Brentwoodbank.com
412.409.BANK (2265)
How To Apply
Contact us for your mortgage application:
Stop by the branch location nearest you and pick up an application packet.
Go online to brentwoodbank.com/loans/residential-loans
Call us at 412.409.BANK (2265) and we will mail you an application.
What To Expect
1. Complete your application, either by filling out the application you received from the branch or go
online.
 The online application takes less than 20 minutes to complete.
 It is easy.
2. A Loan Advisor will contact you to introduce themselves and to answer any questions you may have.
 They are your mortgage expert and will provide help and guidance along the way.
3.
We will mail you disclosures that contain additional information about your credit request and the
costs associated with it.
 You will need to sign papers included in the kit.
 List of items we will need to verify the information you provided about your finances during the
online application.
 After you approval to move forward, we will order an appraisal.
4. We will contact you for your closing date if your application was approved.
 “Closing disclosure” will be sent to you 3 days prior to the closing date.
 The closing will take place at one of our offices or at the office of the closing attorney.
 A few days prior to your closing date, your Loan Advisor will contact you to walk through the final
information.
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412.409.BANK (2265)
Mortgage Application Process
Step 1
Shopping
Your Tasks
You can get a pre-qualification letter to shop for a new

Contact us to request a pre-qualification letter.
home and negotiate a purchase contract.
Estimated Time: W ithin 90 days
Tips & Advice
Our Tasks

You’re done when you contact us and submit an
Offer guidance and answer questions about the mortgage
process.
application.
Step 2
Documentation
Once you have selected a property, fill out an application
either online at
Your Tasks

After we receive your application, start gathering documents
as requested in the disclosure packet.
brentwoodbank.com/loans/residential-loans or by
stopping by a branch close to you.
Estimated Time: 1—2 weeks
Tips & Advice
Our Tasks

Send you a disclosure packet.

Provide status updates.

Order an appraisal, after receiving your intent to proceed.
You’re done when you return your application packet
and documents on your to-do checklist.
Step 3
Review
Your Tasks
Stay informed and be responsive to requests from us as we

Submit additional documents, if required.
review and evaluate your application. More information
may be required to support items already submitted.
Estimated Time: 2—3 weeks
Our Tasks
Tips & Advice

Review appraisal.
Keep documents on hand in case they need to be

Confirm documents provided are accurate and complete.

Provide status updates.

Provide a final decision.
referenced again.
You’re done when you receive final approval.
Brentwoodbank.com
412.409.BANK (2265)
Mortgage Application Process
Step 4
Closing
Your Tasks
Review your closing costs and confirm your closing date and

Review your Closing Disclosure.

Review and sign closing documents.

Pay your closing costs.
time.
Estimated Time:
1 w eek
Tips & Advice
A certified check or wire transfer will be required to pay
your closing costs.
You’re done when you sign your closing documents and
Our Tasks

Prepare documents and coordinate with Settlement Agent.
receive the keys to your home.
Do’s and Don’ts
Things to Do
Things to Avoid

Keep documents and statements readily available.


Provide all pages or requested documents.

Inform us of changes to your income, assets or
purchase contract.

Tell us if you or any co-borrower will be unable to
Don’t make unnecessary money transfers between your
accounts. This may require additional documentation and
may result in closing delays.

Don’t let your good credit rating slip. This can happen when
you miss bill payments, open new credit accounts or change
major purchases on current lines of credit.
attend the closing. A power of attorney may be
required.
Brentwoodbank.com
412.409.BANK (2265)
Common Mortgage Questions
Can I apply for a loan before I find a property to purchase?
Yes; you can apply to be pre-qualified before you find a home. You can do that right on our website. Once you have a prequalification letter, you can use it to assure real estate brokers and sellers that you are a qualified buyer. Having a prequalification for a mortgage may give more weight to any offer to purchase that you make.
When can I lock in my interest rate and points?
Your interest rate is locked after we receive and review your completed application.
What is mortgage insurance (MI) on a conventional loan?
Mortgage insurance protects lenders in case a borrower defaults on a loan. If your down payment is less than 20%, you’ll be required to have mortgage insurance. The cost of MI will be rolled into your monthly payment.
What are closing costs and who pays them?
Closing costs are fees to process and close your loan. Some examples include title insurance, appraisal, recording and credit
report fees. You’ll be responsible for closing costs.
What is included in my estimated monthly payment?
Your monthly payment will typically include principal, interest, and taxes.
What is an interest rate?
The interest rate is the amount you’ll pay the lender to borrow money. It is used to calculate your monthly payment.
What is an annual percentage rate (APR)?
The APR is a standard way of expressing what a loan will cost you each year so you can make comparisons. The APR includes
fees and other expenses of your loan.
What is a discount point?
A discount point is an up-front fee you can pay to reduce your interest rate and, in turn, your monthly payment. One point is
equal to one percent of the loan amount.
Should I pay points in exchange for a lower interest rate?
Compare the cost of the points to the monthly payments savings created by the lower interest rate. Divide the total cost of the
points by the savings in each monthly payment. This calculation provides the number of payments you’ll make before you
actually begin to save money by paying points. If the number of months it will take to recoup the points is longer than you plan
on having this mortgage, you should consider the loan program option that doesn’t require points to be paid.
Brentwoodbank.com
412.409.BANK (2265)
The Bank of Choice
Call 412.409.BANK (2265)
Visit brentwoodbank.com
Brentwood
3635 Brownsville Road
Pittsburgh, PA 15227
412.884.7000
Brentwoodbank.com
Bethel Park
401 McMurray Road
Bethel Park, PA 15102
412.833.5400
South Park Shops
5259 Library Road
Bethel Park, PA 15102
412.833.5455
412.409.BANK (2265)