Homebuyer's Guide

Buying a home is one of the biggest financial decisions you'll make — and it may be easier than you think. This guide walks you through how home financing works, what to prepare, and the steps from first conversation to closing day. When you're ready, the BANK19 mortgage team is here to help.

Know Your Options Before You Start

There is no one-size-fits-all home loan. The right fit depends on your goals, your finances, and the home you're buying. Speaking with a mortgage professional is the best way to determine which option works for you and your family — a BANK19 mortgage specialist will walk you through the choices and recommend a strategy built around your full picture.

There may also be first-time homebuyer programs available to help you reach your goal, such as down payment assistance, special interest rates, or reduced upfront costs. Ask the BANK19 team which programs you may qualify for.

Why Get Pre-Approved?

Common sense says you should know what you can afford before you start shopping — and homebuying is no different. Getting pre-approved before house hunting gives you solid numbers from a mortgage expert, so the process runs smoother once you find the right home. When you're pre-approved, you can:

• Shop with confidence: You'll know your price range before you start, so you can focus on homes that fit your budget.
• Strengthen your offer: In a competitive market, a pre-approval letter tells sellers you're serious, making your offer more attractive than others.
• Move fast when it matters: When you find your dream home, you'll be ready to act.

Pre-approval is a straightforward process with no cost and no commitment. Lenders base the determination on a number of factors:

Pre-approval is a valuable first step; you'll complete a more detailed application later in the process to become fully qualified for a loan.

How Much Cash Do I Need?

While some loan options require little or no money down, most require some cash on hand for the down payment, closing costs, and lender fees.

Down Payment

Any money you put toward your down payment reduces the principal amount of your loan, which lowers your monthly payments and may affect your interest rate. The amount required depends on factors such as your finances and the type of loan you choose. Loans obtained with a smaller down payment often require Private Mortgage Insurance (PMI), which protects the lender and is figured into your monthly payment. Your BANK19 specialist will explain what applies to your loan.

Closing Costs & Lender Fees

At closing, certain fees and costs are expected. They can be confusing, but your BANK19 mortgage expert will explain every charge and answer your questions. In some cases a seller may agree to cover a portion of the costs. Charges may include general loan fees, insurance, taxes, title charges, government recording charges, and application fees.

Home Loan Application Checklist

Though additional information may be needed, this checklist covers the documents lenders commonly use to determine loan qualification. Ask a BANK19 mortgage specialist for details specific to your situation.

Income Information

• Pay stubs for the last 30 days
• Names and addresses of all employers for the last two years
• W-2 forms and federal income tax returns for the last two years
• Verification of other income — such as dividends, rental income, child support, alimony, or Social Security and disability payments

Asset Information

• Savings and checking accounts
• 401(k), IRA, and investment records
• Social Security number

Additional Documentation

• Names, phone numbers, and addresses of all involved parties
• Any remaining documents your loan officer requests

Chart a Path to Homebuying Success in Five Steps

1. Get Pre-Qualified Make an appointment with a BANK19 loan expert, gather your documents, review your options together, and obtain your pre-qualification.
2. Plan Your Move Review your monthly income and expenses, make a list of areas you like and their home prices, set a timeline, and meet with your Realtor to look for homes in your price range.
3. Find a Home Make an offer, deposit your earnest money, and hire a home inspector.
4. Navigate Your Purchase Meet with your loan officer and sign the application, order an appraisal, obtain homeowner's insurance, review your title documents, submit any remaining paperwork, and get final approval.
5. Close on Your New Home Wire your down payment to the title company, attend closing, transfer utilities and forward your mail — then move in.

Things Not To Do Before Buying a Home

Once you're in the loan process, a few common missteps can complicate your approval. Until you close, it's best to avoid:

• Changing jobs
• Using credit cards excessively (keep balances well below the card's limit)
• Falling behind on or missing any payments
• Transferring large sums between accounts, or making unusually large deposits
• Letting anyone pull your credit
• Making a significant purchase, co-signing a loan, or changing bank accounts