Q. If I’m planning a home improvement project, should I apply for a home equity line of credit or a construction loan?
A. A home equity line of credit is based upon the current value of your home. If you will be doing small projects, such as window replacements, painting, or new roofing, this may be a great option for you. A line of credit is available to use as needed, by simply writing a check on the loan.

Depending on how extensive your improvements will be, you may want to consider a construction loan. At The Village Bank, this process is designed to lend on the future value of your home, not just on the equity you currently have. Perhaps you will be doing a large remodeling project or even a tear down of your current home. Either of these options will require an architect to assist you with plans and specifications, and help you determine both cost and how extensive the project will be.

Applying for a construction to permanent mortgage will allow the Bank to work with you throughout the process of completing your home project. The origination department can assist you with the process as you go forward with your application, and our servicing group will work with you during the build that follows.

Q. What documents will I need to give the Bank for my mortgage application?
A. Depending upon the information you provide in your application, we will send you a list of documents necessary to decide your loan. These will include items needed to verify income, assets, employment, and current real estate owned.

Q. Will an appraisal be necessary to complete the mortgage application process?
A. Most often, an appraisal is required to determine the current value of a home. The Bank is then able to calculate the loan amount to that value as a percentage of ownership. Once an application is received, you will be contacted by the appraiser for a mutually agreed time for him to view the home.

Q. How long will the processing of my application take before I can schedule the closing?
A. Once your documents are received, it will usually take between 45-60 days for processing and underwriting. This includes the completed appraisal to be returned to the Bank, and title work to be done by the attorney’s office. A commitment letter will be sent to you with any outstanding items needed prior to the closing date.

Q. If I have never owned a home before, or wish to consider looking for a possible home to buy, how do I begin the process?
A. In a market where inventory is low and housing prices are high, competition to receive an accepted offer can be stressful. The best option is to be prepared. The Village Bank suggests a preapproval, which can be given the realtor, so that once you decide to move forward, the seller knows you have financing available. Our preapproval is not conditional, but a full underwrite. We will request your financial information when you apply, and let you know the amount we are willing to lend you should you choose a home within our lending area. A letter will be provided to you with this information. Once you have an accepted offer, you will let our originators know, and your preapproval application will be changed to reflect the property address so an appraisal can then be ordered.

Q. If I need to buy out someone currently on my deed, how is this done?
A. You will want to apply for a cash out refinance. A new deed can be done at the closing, and a check made available to the other party.

Q. Are loans available for second homes?
A. Yes, The Village Bank does do mortgages for second homes. You will want to speak with an originator about where the property is located to see if it falls within our lending area. Please note, second home rates are typically higher than rates for primary homes.

Q. What types of loans are done by the residential lending department?
A. Residential lending only does owner-occupied properties. Fixed-rate options, as well as adjustable-rate loans are available.