Noted for remarkable customer service, First Internet Bank has a quick online mortgage application process with a built-in human support system. You can even get pre-approved for a loan in under a minute, which can help strengthen your offer in today’s tight real estate market.
Find out everything you need to know about First Internet Bank’s complete suite of mortgage services.
First Internet Bank of Indiana can originate mortgages throughout all 50 states. While the lender does encourage keeping your credit score as high as possible in order to qualify for the best rates available, they do cater to borrowers with less than perfect credit. This is particularly true of their government-backed mortgages, including FHA and VA loans.
Also, think about how you’re going to pay for your down payment. As part of the First Internet Bank application, you’ll need to provide documentation for the source of your down payment.
Common sources include savings accounts, work bonuses, tax refunds, or even family gifts. You’ll need to provide the appropriate proof of funds, such as bank statement copies, tax return copies, or a gift letter.
Another option is to use a secured loan against a 401(k) or other retirement account. Of course, you should make sure you have an alternate, healthy retirement plan in place before you borrow funds for your down payment.
Types of Home Loans Available
You can find plenty of different home loan programs to choose from with First Internet Bank. First, consider whether you prefer a fixed-rate or adjustable-rate mortgage. If you plan on living in your home for a long time, you’ll probably want a fixed rate, especially since rates are still at near-historic lows.
You can pick a fixed-rate mortgage with a loan term lasting 10, 15, 20, 25, or 30 years. The shorter the loan term you choose, the lower your interest rate will be. But you’ll also be paying higher monthly payments since the price of your home is spread out over a much shorter period.
If, on the other hand, you plan on moving within a few years, you may opt for an adjustable-rate. While this can get pricey if you end up staying in your home for a long period, you may save money if you leave before your rate increases.
That’s because you get a lower fixed rate for the first few years of your mortgage, which usually lasts 5, 7, or 10 years. When that period ends, your rate changes based on where mortgage rates are at that time, and then reset on a regular basis, usually once a year.
First Internet Bank also offers two types of government-backed mortgages: FHA and VA loans. With an FHA loan, you only need to put down a 3.5% down payment. You can also qualify with a lower credit score compared to other types of loans.
Just remember that you may receive a higher interest rate. Additionally, any mortgage with a down payment under 20% is subject to private mortgage insurance. That can increase your monthly payment until you have enough equity in your home to drop that added expense.
For military members both past and present, you could qualify for a VA loan through First Internet Bank. The benefit is that it requires no down payment whatsoever. Plus, since First Internet Bank is experienced with this type of loan, your loan officer can help you quickly get the paperwork required to qualify, particularly your Certificate of Eligibility.
Both conventional and government-backed mortgages come with a loan limit, usually set at $453,100 for most places in the U.S.
What do you do if you want to buy a more expensive house?
Consider getting a jumbo loan through First Internet Bank. While rates are generally higher for this kind of mortgage, First Internet Bank offers competitive rates for borrowers. You can talk directly with your loan officer to see the best way to structure a jumbo loan for your upcoming home purchase.
Home Equity Loans
First IB also offers competitive rates on home equity loans with terms of 5, 10, and 15-year fixed-rate terms. They come with extended repayment options and low monthly payments.
Fees and Rates
Like any mortgage lender, your home loan through the online bank will require a set of closing costs. They do charge lender fees but provide you with an upfront quote at the beginning of the application process. This allows you to compare your options before making a decision.
Lender fees include things like:
- Discount points
- Document preparation fees
- Loan processing fees
Other fees that are included in closing costs regardless of what lender you choose include:
- Third party fees (such as the appraisal and title company charges)
- State and local taxes
- Prepaid items (such as per diem interest, mortgage insurance, and homeowner’s insurance)
First Internet Bank’s Mortgage Process
First Internet Bank’s advisors are professional. They’ll take you step-by-step to make sure the entire process goes as smoothly as possible until you reach closing.
There are six basic steps until you can sign your paperwork and get the keys to your new house. First Internet Bank’s loan process includes the following:
- Choosing your loan program.
- Getting your pre-approval letter.
- Locking in your interest rate.
- Providing your loan officer with the required documentation.
- Ordering your appraisal and title.
- Processing your application and validating your information.
After that, your application can be approved and you’ll be ready to close. Expect the entire process to be completed within 30 days.
Your loan team will help you figure out what specific documents you need to submit in order to move your application forward as quickly as possible. In most cases, the loan process is relatively smooth as long as you stay on top of your action items. In fact, you can start gathering your financial statements in advance of your official application.
Typically, you’ll need things like pay stubs, bank statements, W-2s, and tax returns. You can always have a call with a loan officer at the beginning of your house hunt. This allows you to get an idea of what kind of mortgage products you qualify for and what budget you should stick to during your search.
One of First Internet Bank’s biggest strengths is its transparency. They are extremely upfront throughout their website and FAQs about what you can expect and not expect from the lender.
They view their loan officers as experts, not salespeople, which means, you’re less likely to be steered into a decision that isn’t in your best interest. Yes, you’re responsible for making sure you understand the total cost of your mortgage. But First Internet Bank’s team is committed to giving you upfront quotes in order to help.
Their website is also full of in-depth resources to guide you through the home buying process. You can get a rate watch email alert and utilize their mortgage calculators to compare different financing scenarios. There’s also a mortgage term glossary so you’re never in the dark.
First Internet Bank provides exceptional customer service with quick closing times. If you want an expedited process for a large variety of home loan products, then this is a lender worth considering.