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"My experience with Yampa Valley Bank and Kathryn Pedersen was absolutly fabulous! The entire loan process was smoothly expedited. I would definately use YVB in the future for all my mortgage needs!"

"We had an extraordinary experience working with Kathryn and Katie. From the professionalism and knowledge that Kathryn brings to the table, to the personal touch Katie adds to each conversation, we have felt as though we were their number one clients all along."

“I would have to give Kathryn credit for all the help she’s been in repairing my credit over the past six years. The whole mortgage team is a pleasure to work with and Kathryn has become a friend throughout the process. She was the first Business Banker I worked with at Yampa Valley Bank and a large reason Yampa Valley Bank now holds four of my business banking accounts. Overall, unbelievable; I could write a book about it!”

1.	How do I know how much house I can afford? Answer
2.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3.	How is an index and margin used in an ARM? Answer
4.	How do I know which type of mortgage is best for me? Answer
5.	What does my mortgage payment include? Answer
6.	How much cash will I need to purchase a home? Answer
7.	What should I do during the loan process? Answer
8.	What shouldn't I do during the loan process? Answer

Q :	How do I know how much house I can afford?
A :	Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. First National Bank of Steamboat Springs can help you evaluate your choices and help you make the most appropriate decision.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Q :	What should I do during the loan process?
A :	DO: Put the cash you need to close into a seperate account and don't touch it until closing Promptly get back to us with any information that we request, this will make the process go smoothly Set up homeowner's insurance promptly

Q :	What shouldn't I do during the loan process?
A :	To make your loan process go smoothly DON'T: Buy a car, or make any major purchases on credit cards Apply for any type of additional credit because taking out additional credit may change your approval Change jobs or change your method of income (for example changing from an hourly wage to commission) Become past due on any accounts Bounce checks, if they are on the statement that you give to the lender it could hurt the approval process Leave town around your closing date without making arrangements with us