Warmer weather ushers in bike rides, barbeques, home improvements... and home purchases! Before you start seriously house shopping, First Farmers urges you to consider the following tips so that purchasing your dream home doesn't become a nightmare:
- Know your monthly income and budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.
- Discuss your finances with a First Farmers State Bank lender before you begin looking for a home. It is important to stay within your means when purchasing a house.
- Gather and organize paperwork and documents. Items you should have readily available include paycheck stubs, W2 forms, tax returns and bank and investment statements for the past two years.
- Check your credit report so you are aware of what your current credit score is before applying for a loan. Credit reporting agencies must give you one free report annually.
- Maxing out credit cards or falling behind on other loan payments could create issues when applying for a mortgage. Keep tabs on your spending habits before applying for a mortgage, and don’t go on a spending spree afterwards either.
- Work with your community banker to figure out how much you can borrow and which mortgage product is right for you. Your local community banker can explain available mortgage options—including rate adjustments, fees and other loan features—so you are prepared for the loan closing and not surprised down the road.
- Learn what current mortgage rates are. Your community banker can help you understand how that translates into monthly mortgage payments.
- Check with your state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.
Still have questions? Contact an experienced First Farmers mortgage lender today!
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