The role of a bank or mortgage lender is to originate and/or fund loans so that borrowers can buy, build or refinance their home. To originate and fund a loan, the lender must review all financial documentation of the potential borrower, including credit score, assets, debts and debt-to-income ratio, so they can determine if the borrower is qualified for a loan. This is the same basic process, whether the person is buying a family home or refinancing their existing home.

SouthStar bank is a mortgage lender. We make the loan directly to you. A broker is an individual who works with several different lenders and who tries to match a borrower with the lender who is right for them.

As your community bank, we are able to match most of our customers to excellent loans with outstanding interest rates. We’re committed to helping you find the mortgage that’s right for you.

We encourage you to come to us first. We care about maintaining our relationship with you and about ensuring that we serve all of your financial needs.

Many borrowers, especially first-time homeowners, may not understand the nuances and complexities of home loans. For this reason, one of the most important qualities of a good loan officer is to be a great communicator. The best mortgage lenders can convert complex terms into easy-to-understand language for their clients.

Questions to ask about potential mortgage lenders

1. Do they respond to your initial inquiries?
2. Are they focused on closing the deal, or do they want the best solution for your situation?
3. Do they offer a wide range of mortgage products with competitive interest rates?
4. Do they provide valuable insight into the process, and are they available to answer questions?
5. Are they a good problem solver?

With a broad range of lending experience, SouthStar Bank is perfectly positioned to guide you through the mortgage process. We provide personalized customer service and will recommend the best loan program for your needs. Contact us for more information.

This is often the primary hurdle for first-time home buyers, and one to discuss with your loan officer. The best way to determine how much of a loan you can qualify for is to review your monthly financial obligations against your total monthly income. This calculation is known as the debt-to-income ratio (DTI). For many loans, the maximum allowable DTI is 50%. For example, if the borrower’s monthly gross income is $6,000, their maximum monthly debt obligation, including their proposed monthly mortgage payment, should not exceed $3,000. There are exceptions to this 50% DTI rule, so you should consult your mortgage professional for guidance.

Important Terms Used by Mortgage Lenders

Becoming familiar with these selected terms will help you to better understand the mortgaging process, so that you can make more informed choices about your new home or investment property.

Adjustable Rate Mortgage (ARM)
This type of loan starts at an introductory rate and is then based on interest rates that will change automatically according to market indexes. Your monthly payments will never exceed the ARM loan cap.

Amortization
The amortization of a loan is the process of paying off the loan over time. Monthly loan payments can be shown using an amortization schedule or amortization calculator.

Conventional Mortgage
Unlike a VA or FHA loan, a conventional loan is not offered by a government sponsored entity. Terms are typically 15, 20 or 30 years.

Equity
This is the value of a property, beyond the amount that is owed on the loan. A homeowner can often borrow against this home equity value.

FHA Loan
Insured by the Federal Housing Administration, FHA loans are often suitable for first-time homebuyers or low-to-moderate income borrowers. These loans require lower minimum down payments and credit scores, but require PMI.

Pre-Qualification
Review by a lender to determine a borrower’s loan eligibility. Obtaining this puts buyers in a better position when home shopping.

Private Mortgage Insurance (PMI)
To protect the lender, certain homeowners are required to purchase PMI. It is most often required if the loan amount is more than 80% of the home’s value.

Rate Lock
This is a short-term agreement that the lender makes to the borrower, to commit to a specific interest rate on the loan until the buyer can finish negotiating the home purchase.

Refinance
The borrower or homeowner replaces their existing loan with a new mortgage loan. Often used to negotiate a lower interest rate to reduce their monthly payments, or to shorten loan terms for quicker payoff.

Truth in Lending Disclosure
This document, required of all lenders, gives home loan borrowers vital information about the loan, including interest rates, loan amount, closing costs and final cost upon loan maturity.

VA Loan
This discounted home loan is exclusively available for military veterans. Advantages include no down payment or PMI, no minimum credit score, higher allowable debt-to-income ratio and lower rates.

We’ve assisted thousands of customers throughout Central Texas in realizing their dreams of buying a home or investing in property. We’re a valuable partner with extensive knowledge of the real estate and lending marketplace, whether you’re a first-time homeowner, purchasing a vacation home or need cash from your home equity to pay for remodeling costs or other expenses.

Unlike other mortgage lenders, SouthStar Bank offers both portfolio lending options through our Star Advantage Program as well as traditional mortgage products, including those offered by Fannie Mae, Freddie Mac, VA and FHA. We understand that not all borrowers have the same qualifications. By understanding our borrowers’ entire financial picture, we can approve loans that often don’t qualify under traditionally strict mortgage parameters. These portfolio loans, also referred to as bank-held loans, offer common-sense flexibility.

SouthStar Bank is committed to outstanding customer service, which includes walking you through the mortgage process, from start to finish. Whether you are in the market for a downtown Austin high-rise, a ranch in East Texas to spread your wings, or a rehab starter home — we have a loan to fit your needs. We’re not scared away by non-warrantable condos, barndominiums or even tiny homes. We understand that our clients are unique, and their loans should be too.

All decisions are handled in our local office, so you won’t have to wait for your loan application to move through an out-of-state loan review committee. This streamlines the entire process for a faster, more transparent and satisfying experience.

To begin, complete our easy online application.