HOME BUYERS GUIDE 20 Things To Know About Getting A Mortgage
1. COMMON MORTGAGE TERMS TO KNOW APR Annual Percentage Rate DTI Debt to Income Ratio FHA Federal Housing Administration LTV Loan to Value Ratio PMI Private Mortgage Insurance PITI Principle, Interest, Taxes and Insurance VA Veterans Administration MSHA Maine State Housing Authority RD Rural Developemtn
2. GATHER A TRUSTED TEAM Lender Realtor Insurance Agent
3. THERE ARE MULTIPLE MORTGAGE OPTIONS No Money Down Low Money Down 10% Down with no PMI Low Down Payment with PMI Maine Housing First Time Home Buyers Program Mortgage Providers such as VA, MSHA, RD Ask an Atlantic Mortgage Development Officer about the best option to fit your financial needs.
4. MAINE HOUSING FIRST TIME HOME BUYER PROGRAM A First Home Loan from Maine Housing can be one of the most affordable ways to buy your first home or return to home ownership Receive $3,500 advantage towards down payment & closing costs by attending the Maine Housing First Time Home Buyers Program* Maine Housing course is $30 per person/$50 per couple or $99 per person online Atlantic will refund the cost of the course when you close your loan with Atlantic *The $3,500 Advantage towards down payment and closing costs is included with the rate. A homeworks home buyer education class is required to receive the $3,500 Advantage.
5. GET PREAPPROVED Get a jump start on the process by getting preapproved for your loan. Advantages to getting preapproved: Search confidently knowing you can afford it Show sellers and real estate agents you re serious with your offer Eliminate credit surprises Atlantic has an easy preapproval process. Simply call 1.800.834.0432 or go online to atlanticfcu.com.
6. DOCUMENTATION Having your paperwork in order helps expedite the entire process Here s what you ll need: Current Identification Recent Pay Statements 2 Years W-2 s 2 Years tax returns if self employed or have ownership interest in a business 3 Years tax returns are required for some loan programs, such as Maine Housing First Time Home Buyers Program Additional information will be needed with full application once under contract.
7. KNOW YOUR BUDGET & CREDIT SITUATION Your price range will depend on the monthly payment you can afford Your credit score can impact what programs you might qualify for and can also affect: Down Payment Requirements Acceptable Debt Ratio Fees, Interest Rate Get your Credit Reports from all three bureaus FREE: Transunion Equifax Experian Atlantic can help secure your credit score during your pre-approval.
8. ESTABLISH OR IMPROVE YOUR CREDIT Don t open too many credit lines at once Always make payments on time Get your credit card balances as close to $0 as possible Ask your Atlantic Mortgage Development Officer for details. Be Patient. There is no such thing as a quick fix for credit history.
9. WHAT A LENDER WANTS TO SEE Stable income 2 year history with the same employer, or similar field and evidence it will continue There may be an exception to this if you recently graduated college Proof of funds for Down Payment/Closing Costs (2 months full bank statements) Responsible handling of finances: History of regular on-time payments Maintaining capacity on lines of credit Manageable debt level (debt ratio)
10. CLOSING COSTS DEFINED Closing costs are the fees incurred in a real estate transaction. Some programs allow the seller to help pay for these costs. Costs include (but are not limited to): Loan origination Fees Appraisal Fees Title Searches Title Insurance Survey Taxes Deed Recording Fees Credit Report Charges
11. WHAT IS INCLUDED IN A MORTGAGE PAYMENT PITI: Principal, Interest, Taxes, Insurance PMI: Private Mortgage Insurance (if applicable) Escrow Account: Holds the funds for your Property Taxes and Homeowner s Insurance
12. WHAT HAPPENS WHEN UNDER CONTRACT You or your agent will send Atlantic a copy of the fully executed Purchase & Sale Agreement (P&S) and copies of checks written for earnest money deposit You will sign your application and disclosures and be requested to provide any documentation still needed Start shopping for home owners insurance Take a look at Atlantic Federal Credit Union Insurance
13. INSURANCE QUOTE INFORMATION When shopping for homeowners insurance, in order to receive quick and accurate rates it s best to know: The square footage of your home The construction details such as style, type and features The types of pets you own The details about any homeowners insurance claims for the past 5 years at any location Your liability coverage needs The year your home was built as well as when any major improvements were made to roofing, plumbing, heating and electrical systems if over 25 years old
14. NOW WHAT HAPPENS? Once everything is gathered, the loan package is submitted to underwriting You will be contacted by an Atlantic loan processor who will let you know of any additional items requested by underwriting The lender support team will order the appraisal, title search, mortgage loan inspection survey as well as the title insurance policy
15. MORTGAGE LOAN INSPECTION Generally costs up to $300, paid for by buyer Mortgage Loan Inspections (MLI) are required by lenders prior to closing on a home to provide reassurance to lenders and title holders that there aren t obvious encroachments, or obvious violation of town ordinances An MLI can detect problems with the property that could cause you to reconsider purchasing it, or demand a cure for the certain problem.
16. WHAT IS TITLE INSURANCE? Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property that were unknown when the home was purchased Not to be confused with homeowners insurance homeowners insurance is hazard insurance that protects against potential damage to the home in the future A title insurance policy insures against events that occurred in the past of the real estate property and the people who owned it, for a one time premium paid at the closing
17. FINAL STEPS BEFORE CLOSING Complete appraisal is submitted to underwriting for approval You receive a copy of the appraisal, along with an update from the processor Underwriting reviews the file again for any remaining items/verifications needed Once all items are cleared, underwriting will give final approval and send the file to closing
18. CLEAR TO CLOSE The lender support team will communicate with the title insurance attorney to tie up any loose ends and prepare the closing documents Closing will be scheduled Sign the papers Congratulations!
19. SAFETY TIPS Don t send sensitive financial data (Social Security Number, Account Numbers, etc.) by regular email If using email use secure email only (lender or title company can originate one for you to use) Always confirm wire instructions with a phone call to someone you know/trust Fraudsters have been known to intercept emails and give false wire instructions to steal money (including attempts in our area) These are some general guidelines. Different lenders can have different procedures. Depending on your unique situation, there may be additional steps to the process. Be sure to ask questions to know the next stage.
20. ATLANTIC IS READY TO HELP Nicole M. Savage Mortgage Development Officer NMLS #500170 Direct: 207.373.5140 Cell: 207.509.8866 nsavage@atlanticfcu.com Atlantic NMLO/NMLS Institution Identifier: #402778