What should first-time homebuyers know about mortgages?

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First Time Buyers

Buying a home is a major milestone in life. Buying your first home can sometimes be a daunting task, considering all the options for financing and finding that home that will fulfill your needs as a homeowner and grow in value.

 

You can always start with us at Town and Country Bank Midwest before you do anything else. We would love the opportunity to discuss your options with you and make the process as easy and painless as possible. We do, however, know that there are folks who want to do research and have some information and ideas before they pursue financing options. Here are some things to look at when beginning your search for a first home:

  1. Amortization Schedule – An amortization schedule will allow you to input different variables such as length of the loan, down payment, and house price so that you can figure out the ballpark you need to be in when looking for a home based on payment. But keep in mind these schedules do not also take into account taxes and insurance.
  2. Credit Score – Your credit score will determine if you are eligible for a home loan, and what interest rate you will pay. Loosely, you would need a credit score of at least 620 to purchase a home. There may be alternative options for financing your home with a lower credit score, but you will want to talk to one of our lenders first before going any farther on your own. You don’t want to waste time researching to buy a home when you must first work on that credit score – which could take a while.
  3. Documentation – Lenders will need to see proof of income and tax documents to provide you with a mortgage loan. You might as well start gathering them up so you come prepared for your first meeting. Here are some documentation you might need to apply for a home loan:
    1. Tax returns going back two years
    2. Pay stubs going back 2 months
    3. Bank statements going back two months
    4. Any documentation on assets you may own
  4. Start Dreaming – Start thinking about what type of home you want, where do you want it to be? What features do you want it to have? This is the fun part – look at everything and figure out what will really be the best options for you in your first home!

This is an exciting time in your life and Town and Country Bank Midwest wants to be a part of that process! Some things to know about us when shopping for a bank – we do everything in-house from the decision to lend to the underwriting and processing of your loan. Further, we will never sell your loan servicing to a third party, keeping you local and management of your loan easy. Contact us today to get started on your first home purchase!