Frequently Asked Questions

• Do I have to be a member to apply for a fixed-rate loan?

  Yes, you need to be a Listerhill member to apply for loans. To qualify for membership with Listerhill, you must meet one of the following requirements:

  • If you live in the states of Alabama, Georgia, Mississippi, Florida, or Tennessee, you are eligible to become a member.
  • Depending on your individual eligibility requirements, we may require membership in an approved association at no cost to you.
  • You can also qualify for membership by being a family member of a current or potential Listerhill member.
     
• How important is my credit history in determining whether I qualify for a loan?

  Your credit history is extremely important to lenders when deciding whether to offer you a loan, because it provides an indication of how likely you are to pay back what you owe. This helps lenders determine how much of a risk you are. Typically, the better your credit history, the less risky you appear to lenders, and the better (lower) the interest rate you are likely to be offered.

  Lenders do, however, look at other factors such as income, job stability, and existing debts. Credit unions like Listerhill are also known for taking a more holistic look at their members’ finances when deciding whether to approve a loan, rather than relying solely on the numbers.

• What is a good down payment on a home?

  A down payment of up to 20% is considered good by many lenders. This gives you a significant stake in the property that you are borrowing money to buy. Lenders see a substantial down payment as a good indicator that you will continue to make payments because you risk losing your own money if you do not. Typically, you’ll get a lower mortgage interest rate the more money you are able to put down, although lenders do look at other factors as well.

• What is a debt-to-income ratio?

  Your debt-to-income (DTI) ratio compares your monthly debt payments relative to your gross monthly income. Mortgage lenders use it to evaluate how well you manage debt and whether you can afford a new loan. A lower DTI generally makes it easier to qualify for mortgages and other loans. For conventional home loans, many lenders look for a DTI below 43%.

• How much is a $300,000 mortgage payment?

  Assuming you borrowed $300,000 on a fixed 25 year mortgage loan at a current average annual percentage rate (APR), you could expect to pay about $2,120 per month (not including taxes and insurance premiums). This does not include any down payment you might make on the total purchase price of the house.