Home buying – it’s equally exciting and confusing… so much information being thrown your way! You’ve saved your down payment and started talking to a realtor but now what? We interviewed Pam Peters, the mortgage expert for Mutual 1st Federal to help clear up some of the confusion about getting a mortgage.

  1. When is the right time to get a mortgage officer?

    As soon as you begin thinking about buying a home! I can help you figure out the mortgage payment you are comfortable paying each month, which indicates the approximate value of a home you can afford. We can work together so that you are living comfortable after you’ve bought your home. Plus you can get preapproved which will make looking for a home with your realtor that much easier!

  2. How do you calculate how much someone can afford?

    I take your income, down payment, and monthly debts (car payments, credit card payments, student loans, etc.) and estimate a mortgage amount that works for you and your budget. We have calculators to help get you started.

  3. What items should you bring your mortgage officer?

    • Paystubs to cover the most recent 30 days.
    • W2 forms for the last two years.
    • Most recent 2 months of bank statements (including all pages for checking, savings, investment, and retirement accounts).
    • If you are self-employed, employed by a family-owned company or receive bonus or commission income, please provide your federal tax returns for the most recent two years.
  4. Can you tell me more about the home buying process?

    After you’ve started the application and gotten your pre-approval, you can start looking for your new home! Once you find one, you’ll submit an offer. From there, I would finalize all the paperwork to go over to our loan processing. They would order the appraisal and title insurance for the house. Then it would go to underwriting and then to closing. Home purchase closings can be done typically in 30 days. Then you’d get the keys to your new home!

  5. What kinds of fees are associated with buying a home?

    • Down payment which can be as little as 3% all the way up. Anything below the 20% has to get private mortgage insurance (PMI) on your mortgage, which will go away once the 20% equity is reached.
    • Closing cost which range depending on the loan amount. As an example a $150,000 mortgage would have closing cost of about $2,200.
    • Pre-paids which start your escrow account. As in, your home owner’s insurance and your real estate taxes.

We hope this has cleared up some of the home buying confusion for you. However if you have any additional questions, Pam Peters would be happy to answer them. Pam’s been in the mortgage business for over 20 years, she’s an expert in what she does. She’d love to work with you to find your next dream home! Contact us at 402.697.8200 or email mortgages@mutualfirst.com. And if you’re ready to get started – apply now!

Craving homeownership by frightened of the down payment?
Related Post: Craving Homeownership but Frightened of the Down Payment?