Homebuyer Guide

Guiding Your Homeownership Journey

SIMPLIFIYING THE Homeownership Process

We’re here to simplify the homebuying process, educate you every step of the way and show you options for getting into a home with a low down payment and competitive interest rates

YOUR JOURNEY HOME

Meet with a loan officer

Discuss your financial goals, such as a comfortable payment range, assets you have set aside for the purchase and the type of home you’re considering (e.g. townhouse, condo, single-family dwelling).

Get pre-approved

Apply on my website, and we’ll gather your credit information and all relevant financial documents from you to determine your best loan options.

Go shopping

Tour homes that fit what you’re looking for, and make an offer with your Realtor. Contact me for payment information on specific properties while you shop.

When your offer is accepted

Lock in your interest rate, sign the disclosure documents sent to you, and submit updated documents for final loan approval.

Close on your home

Review your closing disclosure, funds needed and documentation to bring to your closing. On closing day, you will sign the final documents with the title company and receive keys to your new home!

STAYING ON TRACK From Now to Closing

Working as a team throughout the mortgage process, I will be in regular communication with you about application stages and documentation requirements. The next weeks and months can present a lot to keep track of, so we’ve prepared this homebuying timeline to help you stay on track and in-the-know throughout the process

First steps

Develop a personal checklist, including: Features you’re looking for Locations

Budget

Personal goals

Submit your application, and get pre approved.

Do not apply for any other credit or make any significant purchases on credit. You don’t want yoaur credit checked unnecessarily, as it could negatively impact your credit score

Choose your realtor, and begin your home search

When you’ve found the home you want

Make an offer with your real estate agent.

After your offer is accepted, we’ll update your financial documents, and you’ll receive a loan estimate package. Choose a home inspector, and schedule an inspection immediately.

Call a moving company to make arrangements, if you’re using one.

Once your closing date is set

Start packing it’s really happening! Arrange homeowners insurance, and have your agent contact us. We need this information at least 14 days before closing

File address changes with financial institutions, creditors, doctors, insurance, the post office, friends and family

Schedule the utilities for your new home to be transferred into your name

You will receive a preliminary closing disclosure by mail 3–4 days prior to closing Revisions may apply

We will verify any final mortgage details with you, including your cash-to-close funds Typically, these will need to be wired I will let you know if other forms of payment are accepted

Your realtor will arrange a walkthrough of your new home

Sign final loan documents, and get the keys to your new home.

File homestead classification with your county as soon as possible, but no later than December 1.

WHAT TO AVOID

During the Mortgage Process

To ensure a mortgage experience with as few obstacles as possible, please avoid:

Changing jobs, becoming self-employed or quitting your job

Spending money you have set aside for your home purchase

Purchasing or leasing a new automobile

Buying furniture, electronics, appliances or other costly items

Opening new bank accounts

Transferring funds between accounts

Making large deposits without first consulting with me (any significant deposits outside of payroll need to be documented)

Missing payments, letting your credit card balance grow or letting your accounts fall behind

Letting other creditors run your credit report

Co-signing any type of loan

Accepting gift funds for the down payment without talking to me first, as there are special steps for this process

Keeping information from your Bell Bank Mortgage team that is important to your closing from changes in marital or job status to travel plans before close

Credit Score

Five Factors That Affect Your Credit

Your credit score takes into account your current and past debts and your payment history

It helps determine whether you’re approved for a loan and what interest rate you will be charged. The higher your credit score, the better your credit rating, and the lower your interest rate could be.

Simply paying your bills on time can mean the difference between an average and exceptional credit score.

Debt

The amount you owe is compared to your credit limit, on an individual account basis as well as an overall basis. Pay attention to your balances as they relate to your credit limits, especially on revolving debt.

Debt type

There are two main categories of debt installment debt and revolving debt. Installment debt is a loan that is repaid by the borrower over a set period of time in regular (usually monthly) payments that include principal and interest (Think: auto loan or mortgage )

Revolving debt is money owed to a creditor who sets your monthly payments based on your current balance Credit cards are an example of revolving debt

Note: A good credit mix includes both types of debt.

Keeping your old accounts open and active may help to show a more established credit history. Opening and closing credit accounts frequently could hurt your credit score.

Every time you apply for credit, an inquiry will appear on your credit report. Excessively shopping for credit causing many inquiries in a short period of time can hurt your score. (Most often, when shopping for a mortgage, multiple mortgage-related inquiries within a short timeframe will be counted as one inquiry.)

Remember: Your credit will be verified throughout the process. Maintaining a stable credit picture through the close of your loan will help ensure you close without incident.

BUYING A Home

You will need the following information* to start the loan process:

Residence history for the past two years

Legible copy of photo ID for each borrower

Employer name(s), job title, and dates of employment for the past two years

W-2s for the past two years (as well as 1099s and K1s, if applicable)

Federal tax returns for the past two years, all pages and schedules, and business tax returns, if applicable

Current pay stubs covering the most recent 30-day period

Bank statements for the past two months all numbered pages, even if blank or advertisement

Investment and retirement account statements for the past two months or most recent quarter all numbered pages

Name and contact information for homeowners insurance agent

*Additional documentation may be required, depending on your qualifying circumstances and loan program.

ASSET STATEMENTS:

Tip Sheet for Borrowers

Part of the documentation process for your home loan involves providing asset statements. The main reason we need these statements is to make sure your earnest money and money needed for down payment or closing costs are from sources allowed by your approved loan program

Follow these tips to help make the documentation process run smoothly:

Provide asset statements for the past 60 days

If your earnest money check did not post within these 60 days, you will also need to provide a balance and transaction summary from the date of the last statement you had provided to the present, showing the earnest money check clearing.

Send your entire balance and transaction printout

If your statement contains eight pages, you must send all eight pages, even if they do not all include transaction activity These statements must include your bank’s name, your account number and the account holder to be considered official balance and transaction summaries If the statement comes from your computer, it must also include an URL address at the bottom of the page; if it comes from the bank, it must be stamped and signed by the teller.

Verify your deposits

The sources of all funds that come into the account must be documented. Automatic payroll deposits are acceptable without explanation, but any other deposits must be verified with a copy of the check(s) deposited, or the check stub(s) and a note explaining where the funds came from.

Do NOT deposit cash

Prior to making any cash deposits, talk to me. You might be better off not depositing it, and instead using it to buy groceries, gas, etc.

Verify your transfers

If you transfer money back and forth between multiple accounts, we need all pages of these account statements as well. We need a full paper trail of all funds into the account.

Provide an owner access letter, if needed

If you share accounts with non-borrowers, you will need a signed letter from all other account holders stating you have full use and access to the account

Feel free to contact me with any questions or for more information.