Purchasing a new home is one of the biggest investments a person or family will make and can also be one of the most complicated and stressful processes we experience. Whether you are trying to figure out if you are ready to buy a home or you already have a home under contract, our mortgage specialists can help guide you on your homebuying journey. The Community First National Bank team is dedicated to making your home purchase a smooth one. We provide a variety of mortgage options featuring competitive rates, flexible terms, fast loan processing, and flexible meeting times.
Your loan officer can help you to assess what type of loan suits your needs. Below are a few considerations.
If you plan on staying in your home for several years and like the stability of a fixed interest rate, our Fixed-Rate Mortgage may be right for you.
If you plan to stay in your home over a shorter period of time, or expect your income to rise in a few years, our Adjustable-Rate Mortgage may be right for you.
If you are a veteran or active-duty service member, you may be eligble for special programs with favorable lending terms. Learn more about VA Home Loans.
Whether you're a first-time homebuyer, relocating for work, or moving up to your forever home, similar considerations will guide your home purchase journey.
Get ready to buy. Figure out what you can afford to spend and are comfortable paying to buy a home--you may qualify for a larger mortgage than you can comfortably afford, so review the numbers with your lender and your financial advisor.
General guidance is that you should not spend more than 28% of your income on mortgage or rent and less than 36% on all debt (mortgage + student loans, car loans, credit cards, or other debt).
Review your budget and spending habits to see how much you can afford each month; don't forget to budget for insurance, taxes, and ongoing expenses that you may not currently have if you are renting.
Identify how much money you have for a down payment. Make sure you'll have enough money left in savings to cover moving expenses and buy furniture, appliances, paint and other touches to make your new house a home. Typically, you'll need a down payment of at least 3% of the purchase price, and you'll need 20% to avoid PMI (private mortgage insurance).
Work with your lender to get a preapproval. This document will help you and your real estate agent to know how much you can afford.
Submit your application.
Gather required documentation.
Connect with a real estate agent. Your real estate agent can do more than just show you homes; they can be a resource for figuring out what is most important for you in your new home and can help to connect you to other professionals.
Find your home and complete contract.
Oftentimes, you will want to have a home inspection completed.
Your mortgage specialist will obtain an appraisal and complete some additional paperwork. Depending on the lender and the loan program, there may be additional documentation needed to underwrite your loan.
Review loan options and choose.
Close on your loan and home purchase. Once you sign a big stack of papers, you'll receive the keys to your new home. Congratulations!
Community First National Bank will be with you every step of the way.