Home Buying Guide
This can help you determine how much you have the ability to borrow and what type of financing fits you. We can pre-qualify you so that you know what you might be able to borrower and what you might be able to afford for a home purchase.
2. What to bring so that we can begin your Loan Approval
- Pay Stub(s) covering the last 30 days for all applicants. Continue to save your pay stubs until you close on your loan.
- W-2 forms for the last two years for all applicants.
- Bank statements for the past two months for all checking and savings accounts. Continue to save your bank statements until you close on your loan.
- Complete 401(k) and IRA statements, if applicable.
- Complete investment account statements for the past two months.
- Telephone number where employment can be verified.
- If self-employed, complete personal and business tax returns for the last two years.
- If divorced, complete copy of the final decree, property settlement statement and modifications.
3. Loan Approval Process: The home buying loan approval process can be defined by three simple factors:
i. Income - How much can you afford to borrow (based on interest rate and other factors?
ii. Credit Score - How do I improve my rating if it is low? To verify your credit score and limit negative impacts to your score:
- Avoid frequent inquiries into your credit history.
- Check your report for erroneous information.
- Keep in mind that it can take a couple of months to reflect changes.
- Make payments on time.
iii. Cash to Close- Verifiable source of funds
- Stocks, Bonds, Mutual funds, Cash value of life insurance, Gifts, secured borrowers fund, 401(k), IRAs etc.
- Cash can help! For example, a borrower’s debt to income ratio may be outside the normal guidelines. However, the borrower has shown a great ability to save money by putting away his or her 401(k), bank accounts or mutual funds. Because this borrower has shown a great ability to save, they may be rewarded with loan approval.
4. Real Estate Agent
- Selecting an agent is extremely important. You want to find someone that is willing to work for you.
- Find you a home you desire.
- Help in the contract negotiation process.
- Can provide you with a list of homes that meet your requirements.
5. Offering a Purchase Contract
This is another area that your real estate agent's assistance becomes invaluable. They are the experts in this area, and it is extremely important when selecting an agent to make sure he or she is a professional and is going to assist you to the best of their ability.
You may also want to engage the services of a good real estate attorney if you or your real estate agent have questions or concerns about your purchase transaction.
6. House Appraisal
- Ann Arbor State Bank will order an appraisal for your home after we confirm your intent to proceed with the loan and we receive your payment for appraisal cost.
7. Mortgage Closing
Your Mortgage Loan Officer will be with your through the closing
- Meet at Ann Arbor State Bank or title company
- About 60 minutes to sign all documents
- Get ready to get the keys to your new home!
For questions about your existing mortgage, including payments, balances, insurance, taxes and escrows, call 734.761.1475 or email us today!