Understanding the Lending Process

Working with your loan officer

• Your loan officer will outline the various loan products we offer to meet your needs, including products you may not have previously considered.
• Talk to your loan officer about any questions you have regarding the loan products that may apply to you.
• Tell your loan officer about any deposit accounts, trust accounts, savings accounts, loans or any other relationships you have with First Horizon Bank. Having an existing relationship with First Horizon Bank may also provide you with a lower rate on your new loan.

Income considerations

Please make sure that you tell us about all the income you wish us to consider in evaluating your application. For example, don't forget to tell us about:

• Overtime pay
• Part-time income
• Social Security
• Disability or government assistance payments (only if you want it considered)
• Bonuses
• Anticipated salary increases
• Investment income
• Alimony or child support (only if you want it considered)

Note: Your loan officer will tell you what is needed to verify and document the income you wish to be considered. In some cases, we'll need your most recent paycheck stub, and you may also be asked to provide W2s or tax returns.

Debt vs. Income

We will analyze your debt-to-income ratio in two ways:

• We compare your monthly debts to your monthly income to determine your capacity to repay your debt.
• We also determine the amount of income you have left over after your monthly debts are deducted from your monthly income (residual income).

Improving your credit profile

You can increase your chances of credit approval, in some instances, by:

• Fully documenting your income
• Paying off or consolidating debt prior to applying
• Documenting liquid assets that could be used in addition to your monthly income to repay your debt
• Identifying and correcting any erroneous items on your credit report before applying since we use the information on your credit bureau report to evaluate your credit performance

If you have any questions about what you can do to improve your debt ratios, residual income or the information on your credit report, talk to your loan officer.

Note: If you plan to pay off any bills at the time of closing, please provide copies of your most recent statements for these accounts.

Additional Information

• Appraisal - after application, we will order an appraisal to verify the value of your home.
• Borrower's Authorization - we will ask you to sign the Borrower's Authorization at the time of application so that we may obtain important information to approve and close your loan.
• First Mortgage Note - if you have a first mortgage on your property with a lender other than First Horizon Bank, we will need a copy of the first mortgage note.
• Homeowner's Insurance Information - we'll ask you for the name, phone number and policy number for your homeowner's insurance.
• Flood Insurance - if your home is located in a flood zone, we will require you to carry flood insurance on the property that services the loan.