Making Homeownership Possible

Every step of the way we have you covered.

Working with a trusted Lender

Tips to get started

Downpayment assistance

Pre-Approval

The homebuying process

Financing Options

Why Bell?

Let’s get started

Tips after Closing

Working with a Trusted Lender

At Bell Bank Mortgage, we know that every home buyer has their own unique situation as they consider home ownership. We make it our mission to make home happen, with a wide array of loans and programs – and most importantly, the unequaled personal service you deserve.

No matter where you are in the process of home ownership, I’d love to be your trusted advisor. We’ll accompany your loan from start to finish, so you can close on time, with no surprises.

Questions to ask a lender:

1. What types of home loans do you offer?

2. Which type of home loan is right for me?

3. Do you participate in any down payment assistance programs?

4. What are your closing costs?

5. How much time does it take to complete a mortgage?

6. What documents will I need to give you?

7. How do I lock in my interest rate during my application process, and do you charge for that?

8. How do you communicate with your clients?

All these questions and more will be answered in this Homebuyer guide.

Homeownership Benefits

RENT

Landlord restrictions and upgrades

Rents typically increase every year

Pet and parking restrictions

Landlord can raise rent or decide to sell property

VS.

OWN

Mortgage payment builds equity

Tax Benefits*

Make your space your own

Fixed mortgage payments remain the same over time

Provides a sense of stability and community

* Consult a tax adviser for further information regarding the deductibility of interest and charges

Tips to Get Started

Budgeting

Track past expenses

Review credit card debt

Create a budget

Include regular savings Plan for future expenses

Meet with your Bell Bank Mortgage Loan Officer

Discuss your financing goals, such as a comfortable payment range, assets you have set aside for the purchase and the type of home you’re considering.

Double check your credit report

Report any errors to the credit reporting bureau andyour lender.

Explore all down payment options

Bell partners with city, county and state programs to help new homebuyers increase buying power and buy ina shorter period of time.

Get pre-approved

Having an approved loan amount establishes how much house you can buy, and signals to sellers that you are acredit-worthy, serious homebuyer.

Hire a real estate agent

We can introduce you to local real estate professionals.

Remember, it’s not what you qualify for, it’s what you can afford

Monthly payments should not exceed 1/3 of your monthly gross income – but you may determine the amount you’re willing to commit to is less.

Down Payment Assistance?

What is down payment assistance?

Down payment assistance can be in the form of a loan or grant that is repayable or forgiven. There are a lot of options to choose from. It can be used for down payment, closing costs or both.

Housing grants provide an alternative for homebuyers to secure funds needed to obtain housing without repayment. There are income limits to obtain a grant – so speak to your Mortgage Lender for options.

Bell Moving Forward Downpayment Assistance is an option for low-to-moderate income borrowers. In addition to only needing 2% down, you have the ability to utilize gift funds, pair with other downpayment assistance programs and Homebuyer education is provided.

Bell Moving Forward Advantage provides a first mortgage program for minority borrowers* who may not qualify for a mortgage under traditional credit terms. This program can also be paired with other downpayment assistance programs and is a conventional loan.

The Home Assist program is perfect for First Time Home Owners or those who are wanting to purchase homes outside our metro area! Borrower must be a First Time Homebuyer(s), must be purchasing or refinancing a primary residence in a rural area and or a manufactured home.

Gift Funds are monies given to a borrower to help with a home purchase. Gift funds can be used for a down payment, closing costs, or reserves needed for approval. There are limits and guidelines that apply depending on the type of mortgage.

First-Time Home Buyer Education is sometimes required to receive any of the above options for additional funds. A first-time home buyer education course is a workshop that walks you through the process of how to buy a home and helps to answer the big questions borrowers have when making the decision to purchasing a home.

*Available for borrowers identifying as a minority as defined by regulatory designations listed on the initial loan application.

*All loans are subject to credit approval. Income and property location restrictions may apply. Program guidelines are subject to change without notice. Not all products are available in all markets. Other restrictions apply.

Pre-Approval

Debt-to-income ratio

The ratio between your monthly obligations vs. your monthly income.

Down payment

The larger down payment you have, the better your loan terms will be. Assistance programs are available.

Credit history

On-time payments and length of credit history.

Assets

How much money will you have in reserves after you close your loan?

Employment history

How long have you been with each employer?

Financial history

Any bankruptcy/foreclosure records? Consistent/increasing income over the past few years?

Stay Pre-Approved

Keep your financing secure while shopping for your perfect home

• Continue to make all payments on time

• Don’t open new loans, increase credit lines or allow any inquiries on your credit report

• Leave your down payment alone

Let your lender know:

Before making a payment on a collection account

If your name, address or marital status will change

If any sources of income are changing (i.e. new job)

The Homebuying 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.

Meet with a loan officer

Discuss your financing 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!

Financing Options

Conventional loans

Credit scores as low as 620 | up to 97% financing available

FHA loans

Credit scores as low as 600 | up to 96.5% financing available

VA

Credit scores as low as 600 | up to 100% financing available

Attractive terms for eligible military

USDA

Credit scores as low as 600 | up to 100% financing available 97% of homes in eligible rural areas

Jumbo

Up to 89.99% loan-to-value with no MI Loan amounts to $1.5M

Bell Moving Forward

Downpayment Assistance

620 min credit score | 2% downpayment assistance monthly payment loan to be paired with a 97% LTV first mortgage Construction loans

Up to 95% loan to value with credit scores as low as 700

*All loans are subject to credit approval Program guidelines are subject to change without notice. Not all products are available in all markets. Other restrictions apply.

Let’s Get Started

The home loan process

When looking to purchase a home, navigating the mortgage process can be stressful and confusing, especially if you’re a first-time home buyer. It’s helpful to know what you can expect as you enter into the home buying process. Let’s explain some of the essential steps you’ll need to take in order to obtain your new home.

Loan application. We receive complete, updated financial information from you

Home inspection. Work with your real estate agent for this report, detailing the property’s condition.

Property appraisal. We send a local appraiser toconfirm the home’s value.

Homeowners insurance. Secure any necessary insurance on the property.

Loan processing. Bell Bank Mortgage’s local, in-house loan processing means expedited handling when you need it.

Underwriting. Our underwriters review all documentation, and may approve a sale with conditions.

Closing. Once all conditions have been met, you’ll sign a closing disclosure and transfer funds.

The keys, please! At long last, you’ll realize your milestone: walking through the front door of your new home!

Let’s Get Started Continued

What is mortgage insurance?

Private mortgage insurance (PMI) minimizes the risk for lenders to offer loans to borrowers who don’t have a 20% down payment on a conventional loan and therefore have less equity in their purchased homes. This private mortgage insurance would help pay the loan balance in the event you default and go into foreclosure.

Private mortgage insurance (PMI) puts home ownership in reach for millions of qualified borrowers because it helps them to obtain mortgages with smaller down payments – as little as 3% in some cases – while also protecting lenders from losses if those borrowers default on their mortgages.

PMI not only offers borrowers lower down payments, it also offers them:

• Flexible payment options. PMI can be paid in multiple ways, giving borrowers greater flexibility. We offer borrower-paid, lender-paid and split premium insurance plans.

• Cancellability. Unlike FHA, borrower-paid PMI can be cancelled when borrowers reach 20% equity (80% LTV) in their homes by paying down the mortgage principal, as a result of rising home values due to favorable market conditions, or by making certain home improvements.

• PMI cancels automatically when borrowers reach 22% equity (78% LTV) through normal amortization or when the halfway point of their loan tern is reached. Cancellation can result in lower monthly mortgage payments or partial refunds of PMI premiums, depending on the PMI option selected.

4 common mortgage insurance types:

• Borrower-paid monthly

• Borrower-paid single premium

• Lender-paid single premium

• Borrower-paid split premium

Let’s Get Started Continued

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

Diploma or transcript if you were a student in the past 2 years

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

Let’s Get Started Continued

If applicable

VA applicant: provide DD-214 if discharged, or statement of service if active duty

Retired: award letter or retiree statement for any Social Security, retirement, or pension income

Paying or receiving child support: copy of court order and proof of payments

Bankruptcy in the last 7 years: complete copy of bankruptcy papers, including schedule of debtors and discharge

Foreclosure or short sale in the past 7 years: provide complete property address of foreclosure/short sale

On IRS payment plan: copy of plan

*The items above will not inhibit you from starting the loan process.

Why Bell?

For decades, we’ve simplified the homebuying process for thousands of families. In fact, our Bell name has mortgage roots dating back to 1880 in Minnesota. That’s experience you can trust from your preapproval throughout the life of your loan. With core values of family, unequaled service and giving back at the heart of all we do, we treat our customers how we want to be treated, offering highly competitive rates, a wide variety of loan programs and a reputation for award-winning service, reliability and on-time closings.

Our vast array of mortgage programs include:

• Conventional loans

• First time homebuyer programs

• Bell Moving Forward Downpayment Assistance

• Lake and vacation home loans

• New construction loans

• Down-payment assistance program

• Refinancing options

• HELOCs

• Portfolio loans

• Veterans Affairs (VA) loans

• Federal Housing Administration (FHA) loans

• Bell rehab loans (including pool options for new and resale properties)

• Rural development loans

• Specialized doctor and dentist loan programs

• Bell Moving Forward Advantage

• And more!

Tips After Closing

Papers to Keep after Closing

• Loan estimate

• Closing disclosure

• Deed of trust/mortgage note

• Appraisal

• Purchase contract

• Homeowners insurance policy

• Connect / Change the utilities to your name

• Homestead your home

• Change the locks

• Review Insurance information

• Check smoke and carbon monoxide detectors

• Create a maintenance schedule