Retail Lending :: Lending :: First National Bank of Shelby

Retail Lending

Consumer Loans / Installment Loans

At some point in your life, major financial decisions need to be made. You may be purchasing a car, a home or the boat you always wanted! Regardless of your life's dreams, First National Bank can assist you in matching your financial need with an installment loan option.

Contact one of our Loan Officers to begin enjoying what life has to offer. Here are just a few of the benefits you will enjoy with a loan from First National Bank:

Fixed rates to meet your financial needs.
Flexible term options depending on your purchase.
On-line payment through FirstNet Banking or Automatic Debit (with FNB accounts).

What Determines Your Credit Score

Whether you are looking to get a mortgage, car loan or home equity loan, you will be scored by FICO (Fair Issac Corp). The scoring model uses three major credit bureaus - Equifax, Experian and TransUnion. Your credit score is calculated using a computer model that compares the information in your credit report to what is on the credit reports of thousands of other customers. The scores range from 300 to 900. Generally, the higher the score, the lower the credit risk. The FICO model takes into account five factors when evaluating your credit worthiness. They are calculated by the following:

Past payment history - Approximately 35 per cent of your FICO score is based in the information. Late payments can affect your score; however, a recent late payment hurts your score more than one from five years ago.
Outstanding debt - Approximately 30 per cent of your FICO score includes what you owe on your credit cards and installment loans compared to the original amounts of the loans.
How long you have had credit established - The length of time you have had accounts and how often you use the credit effects the FICO score approximately 15 per cent.
New applications for credit - Opening several credit accounts in a short period of time, especially for people who have not had credit for a long time will possibly affect the score by approximately 10 per cent.
Types of credit - Another 10 per cent of your FICO score includes credit cards and loans including installment and mortgage loans.

The main benefit of credit scoring is that an automated system allows lenders to make faster decisions on credit decisions. However, a credit bureau score is not the only factor lenders take into account when considering your loan application. A consumer could have a good credit score and still not qualify for the loan due to other reasons such as insufficient income or an inadequate down payment. Other things that could influence a lender's decision could be the length of time at your current employer and the value of collateral. However, the US law forbids personal information such as ethnicity, religion, sex or marital status from being reflected in your FICO score.

Auto Loans

Finance within 24 hours the new or used car you need. Terms range from 12 to 60 months (up to 72 months for new cars). Here are just a few of the benefits you will enjoy with an auto loan from First National Bank.

You can receive loan pre-qualify before you shop for a car.
Preferred rates are available when your loan payment is automatically deducted from a First National checking/savings account.
Rates and terms vary depending upon model and year of automobile.
No hidden expenses or prepayment penalty.
Low down-payment of only 10% is required.
Credit life and disability insurance are available on all loans.

Personal Loans

A fixed rate loan can be used for vacation, consolidating debt, medical expenses or other purposes. Here are just a few of the benefits you will enjoy with a personal loan from First National Bank.

Fast approval-usually within minutes of application.
Preferred rates are available when your loan payment is automatically deducted from a First National checking/savings account.
Use one of your savings accounts or a CD as collateral and receive a reduced interest rate on the loan.
No prepayment penalty.
Up to a five-year repayment plan.
Credit life and disability insurance are available on most loans.

Home Equity Line Of Credit

Need money for college tuition or to build a new addition to your home? Our home equity line is a revolving, open-ended line of credit secured by your home. This is a great way to provide extra cash by simply writing yourself a loan up to your approved credit limit-for any reason and at any time!

Here are just a few of the benefits you will enjoy with a home equity loan from First National Bank.

Borrow up to 90% of your existing home's appraised value, less your outstanding mortgage balance.
Credit available when you need it.
Interest paid may be tax deductible*.
No pre-payment penalty.
Low cost Credit Life Insurance may be available through our Investment Services Department. (optional)

*The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. You as a consumer should consult a tax advisor for further information regarding the deductibility of interest and charges.

Mortgage Lending

Home Mortgage

Whether you are a first-time home buyer, purchasing a second home or need to refinance, we're here to help you from start to finish. Most loan applications can be pre-qualified. Our trained home mortgage team creates attractive loan packages that offer you the following:

Fast, efficient processing and loan approval.
Various down-payment options.
Competitive rates.
Comfortable monthly payments.
Apply online.

Take a look at the variety of mortgage plans designed to meet your needs.

Conventional 30-Year, 20-Year, 15-Year Fixed-Rate Morgages

Typical financing allows as little as 5% down toward the purchase price.
After closing, the principle and interest payment will remain constant over the term of the loan you select.
Apply online.

Adjustable Rate Mortgage (ARM)

If you anticipate moving from your home in 30 years, then an ARM might be something to consider.

Typical ARMs offer a fixed rate for a period of time, thereafter converting to an adjustable rate.
The initial rate is usually below the prevailing 30-year fixed rate.
Financing usually requires between 5% to 10% towards the purchase price.
Apply online.

Balloon Mortgages

Five and seven year balloon mortgages are based on a 30-year amortization with the balance remaining coming due, or "ballooning," at the end of the fifth or seventh year.

Most often, the interest rate is below the prevailing 30-year fixed rate.
After the fifth or seventh year, the balance is handled in one of the following ways:
Paid in full
Modified at the current mortgage rate plus a margin.
Refinanced
Apply online.

VA Mortgages

This product is offered to eligible veterans of the U.S. military.

Provides 100% financing.
Structured to purchase with little or no out-of-pocket expense.
Apply online.

FHA Mortgages

Loans provide for 96.5% financing.
3.5% of down payment can be "gifted" or given by a close relative.
No maximum income restriction (maximum amount FHA will insure varies from region to region).
Apply online.

Guaranteed Rural Housing (GRH)

This loan is insured through the United States Department of Agriculture.

100% financing for "low to moderate" income.
Maximum income allowed varies by number in household as well as from region to region.
Structured to purchase with little or no out-of-pocket expense.
Apply online.

Construction Loan

Dreams can come true! Let us work with you and your licensed contractor to finance your construction loan. Our loan specialists will develop a plan tailored to your individual building needs.

If you are looking to build your new home, our construction loan programs can be tailored to fit your needs. Our flexible approach to construction financing makes the process simpler and hassle-free.

Works like a "line-of-credit" drawn down as construction progresses.
Upon completion, the construction loan is modified into a permanent loan of your choice.

Interest Only Mortgages

This loan enables you to maximize cash flow by paying only interest for a specific time period. You can apply online for this convenient loan.

Bridge Loans

If you are looking to purchase a new home, but currently have a home on the market, then a Bridge Loan is a great option for you.

Advances to you the equity portion of your existing home.
During the Bridge Loan period, monthly payments of interest only are charged on the outstanding principal balance to allow ample time for the existing home to be marketed and sold.

Reverse Mortgage

Let your home be a source of extra income with a reverse mortgage. Enjoy these great benefits:

Tax-free monthly income.
No monthly payment required.
No credit or income verification necessary.
Allows the homeowner(s) to remain in their home for life.
Social Security benefits and Medicare are not affected.
Closings costs and fees incurred can be financed as part of the loan.
Must be 62 or older to qualify
Plus...much more!