Mortgage FAQ's

Questions and Answers for Consumers

Who is Midwest Regional Bank?

Midwest Regional Bancorp, Inc. was established in 2006 by a group of investors who believe the recent level of merger and acquisition activity in the financial services industry has created a void in the marketplace. More specifically, the initial investor group believes that there is still a significant customer segment that values the personalized level of service provided by a community bank.
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How does Midwest Regional Bank continuously offer such low rates?

We are not bound to just one company rate. We shop our investors daily for the best rate for each program we offer and pass the savings to our customers. Most lenders try to make as much money as they can with each transaction. We don't; we benefit when we do a great job for our borrowers and they refer us to others.
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How does Midwest Regional Bank offer loans "long distance?"

We use local companies in your area for the tite work and the appraisers. You may even choose the title company of your choice. Since we require very little documentation, everything can be done via overnight courier or online. You will sign your final documents at a local title company, or even in the convenience of your own home.
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Why should I use Midwest Regional Bank instead of my own Bank for my mortgage?

In short, SERVICE. We are a Community Bank with leading-edge technology. We care about you, and it is reflected in how we do things.
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I really want to own my own home, but I'm not sure what I can afford. Where do I start?

Many people don't consider buying a home because they're afraid that they can't afford it. In fact, home ownership is within reach - especially with some of our special programs designed to include first time buyers of new homes. Before you begin your home search, you need to have some idea of what you can afford. Please give us a call, or use some of the handy tools found in these pages.
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When should I speak to a mortgage lender?

When you start thinking about buying a home, you should reach out to a reputable mortgage lender. It's true that you can't actually apply for a mortgage until you've chosen your home and have contract acceptance, but you shouldn't wait until then to begin the mortgage process. We regularly prepare pre-approvals for our clients to determine the right price range and to assist them with their negotiations.
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How do I choose the right mortgage lender?

When most people think about selecting a mortgage lender, they only think about finding the lowest rate. Financial considerations like this are important to every home buyer and you should compare lenders. But you also want a lender that you can trust, and someone that will complete your loan request efficiently and trouble free. Don't base your decision on only rates - heres the process we recommend:

  • Build a list of lenders. Get referrals from friends that have financed a home recently.
  • Talk to the Mortgage Professional. Call or visit the lenders on your list. Get a feel for what it will be like to work with them, and how they approach your needs. If you are still uncertain, ask them for references of customers like yourself, and call them.
  • Compare rates for similar loans. Among the things that you'll want to discuss with prospective lenders are their mortgage rates. Remember to check on all lender-fees as well.

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Aren't there really just two kinds of mortgages...fixed and adjustable rate?

You could say that, because all mortgages fall into one of these two categories.

Fixed Rate Mortgages
This type of mortgage provides stable monthly payments for the life of the loan. Generally, fixed rates are higher than the adjustable rates. Fixed Rate Mortgages are available in 30, 20, 15, and 10 year terms.

Adjustable Rate Mortgages (ARMS)
These loans generally begin with an interest rate that is below a comperable fixed rate mortgage. Not for everybody, they can provide significant savings for those who will be in their homes for shorter periods. You can typically find ARMS fixed for 3, 5, 7, and 10 year periods, depending on your needs. All ARMS have the potential to eventually go up. Please consider this and make sure that your mortgage lender provides you with a thourough explanation of the risks associated with ARMs.
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How do I know which type of mortgage is best for me?

There is no easy answer to this question. The right mortgage for you depends on many factors, such as:

  • Your current financial picture
  • How you expect your finances to change in the coming years
  • How long you expect to keep your home
  • How comfortable you are with the possibilities of your payment changing in the future

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects with people you trust and a reputable mortgage lender.
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Do they really need to know everything about me for the application?

It may seem that way, but actually all your mortgage lender needs to know about you is your employment, how you handle your finances and information about the home you are considering. It's true that you will need to provide quite a few details about these topics in order for your process to go smoothly. Be sure to ask your mortgage lender what information you'll need to complete your application, or simply click on the items needed tab in our Resources section.
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How will my credit affect my abilitiy to get a mortgage?

Credit is more important than ever. If you have had credit problems, be prepared to discuss them honestly with your mortgage lender - and come to your application meeting with a written explanation. Reputable mortgage lenders know that there are legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that has been corrected and your payments have been on time for the past 12 months, many lenders can find a way to finance your home. Remember - most mortgage lenders want to help and to find a way to help you with your financing.
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How much will I need for the down payment?

It's probably less than you think. Depending on your area, many first-time buyers are surprised to learn that they can put as little as $0 down. Please share your situation with a reputable mortgage lender and they will help guide you.
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What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include the following; a payment for the principal reduction and accrued interest, payments into a special account called an escrow account for the purpose of paying annual taxes and insurance, and Mortgage Insurance, depending on the mortgage program and down payment that you have selected.
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What happens after I've applied, and how long will it take?

Your lender will begin the work of verifying the information that you've provided. This process can take as little as one week, depending on the type of mortgage you choose, the property you purchase, and most importantly, your qualifications. In order to speed things up, be as helpful as you can in providing information in a timely manner.

Within three business days after your application, your lender must give you an estimate of your closing costs. You'll also get a statement that shows your estimated monthly payment, the cost of your finance charges, and other facts about your mortgage.

For many home buyers, the waiting period can be stressful with any lender. You can get the most out of your process by staying in touch and be prepared to answer any questions that might come up. Remember that mortgage lenders are in the business of making loans, not denying them.
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If I have additional questions not answered on this page, how do I contact you?

You can reach us best by emailing us at jnorton@mwregionalbank.com or if you need immediate assistance, please give us a call at 636.232.9666 during business hours CST.
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Midwest Regional Bank makes such loans without regard to race, religion or other discriminating factors