A person handing over house keys above a contract with a small house model in the background.

Mortgage 101

What to Know Before You Buy

Planning for a Mortgage

house icon

See our rates

Check out today's home loan rates and see how your options compare.
 
Growing and building credit
  • Pay your bills on time in the years leading up to a potential loan of any kind.
  • Loan programs through Freddie Mac and Fannie Mae require you to show 3 loans in your past with at least 12 payments reported under each loan.













Be mindful of changing jobs or careers

Family standing together outside their new home, facing the front door.
Lenders want to see stability in your employment and your career.
 
  • An English teacher leaving one high school to teach English at another high school shows career consistency. However, the teacher may need to have started working at the new school before applying for a mortgage.
 
  • An English teacher who changes careers to start a new job in sales or customer service is not showing career consistency and the lender may require an explanation in the loan application process.
Customer receiving green CSB folder from bank employee
Documentation will always be required to prove current and past employment status.
  • Two (2) most recent W2s plus one (1) month of paystubs
  • Self-employed: Two (2) most recent tax returns 
  • Applicants who want to have overtime hours included must have a history of 18 months or more with their current employer. The 18 month history helps show the seasonality of the overtime pay earned. For example, someone working outside may show a large amount of overtime during the summer and very little work during the winter.


What can I afford?

Person placing coins into a green piggy bank to save money.
Start with a budget
  • Determine your total gross monthly income. Gross income is the amount before taxes are taken out.
  • Banks calculate a debt versus income ratio to help determine how much you can afford. Typically, 60% of your income is set aside for “living expenses” (i.e. groceries, utilities, clothing, entertainment). The other 40% of your income is set aside for debt payments such as mortgages, auto loans, credit cards and other traditional loans.
  • When considering how much you can afford, calculate the total amount of your gross income that is used to make debt payments today. Are you using more (or less) than 40% of your gross income for debt payments?
  • Remember, homeownership has additional costs in comparison to rent, such as homeowner’s insurance and real estate taxes. 
















Prepared for informational purposes only. This information is subject to change, and other terms, restrictions, and fees may apply. Normal account underwriting standards will apply.
 
For more information on mortgage loan products, please connect with one of our CSB Team Members.

Let’s Get You Started

Start online or stop by a branch—it’s fast, easy, and backed by real people who care.