First Bank Mortgage - Purchase

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First Bank Mortgage - Purchase Untitled Document

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Purchase

In today’s market it is more important than ever to work with a lender you can count on for their knowledge, fair pricing and stability. At First Bank Mortgage you have the comfort of working with a lender that is able to offer personalized, friendly service along with a comprehensive array of mortgage programs to suit your needs.

Application Checklist
The Home Loan Process
Choosing the Best Loan

Application Checklist

Documents needed:

Personal check to pay for appraisal and credit report.
Name and address of all employers for the last 2 years with dates of employment (Human Resources office phone number).
Account number(s), balance(s) and monthly payment(s) for all outstanding creditors: i.e., credit cards, car loans, student loans, signature loans, etc.
Previous addresses for the past 2 years.
Photo ID. Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

Information that may be required:

W-2 forms for last two years.
Paycheck stubs covering the most recent 30 days (computer-generated).
Bank statements for the previous two months. Also include institution name, address, account number(s) and balance(s) for all accounts.
Most recent asset account statements; i.e. IRA, 401K, Mutual Funds, stock, etc.

Copy of complete divorce decree.
Tax returns for last two years complete with all schedules for self-employed individuals with 25% or more ownership.
Copy of the listing, purchase agreement, or closing statement for your present home that is for sale or already sold.
Bankruptcy and discharge papers.

If you are purchasing a home:

Purchase agreement and all addendums – signed by the buyer and seller.
Phone numbers for the Realtors involved.
Property information listing sheet or computer print-out indicating lot size, taxes, square footage and year built.

If you are applying for an FHA or VA loan:

Seller’s disclosure for home you are buying.
For VA only, your certificate of eligibility.

If you are building a home:

Phone number and address of your licensed builder, blue print plans and specifications (copy of contract if possible.)
Legal description of lot.
Copy of Warranty Deed if subject property is owned free and clear.

The Home Loan Process

Pre-Qualification - Contact a loan officer to get an estimate of the amount you can afford.
Loan Officer - The person who assists you in the selection of your loan. He or she will answer your questions about the loan process, gather personal and financial data from you and assist you in completing the loan application.
Processing - During processing of the loan, you will be sent the federal and state disclosures. At this time any missing information is obtained.
Underwriter - The processor submits your file to the Underwriter for a review based on the information collected. In some cases the Underwriter may request additional information.
Pre-Approval - A commitment of the loan amount you can afford.
Appraiser - The Appraiser inspects the property and compares it to similar properties nearby that were recently sold. Based on sales price of comparables, the appraiser issues a report which renders an opinion of the property's fair value. Appraisal resubmitted to underwriter for final approval.
Insurance - There are three types of insurance: Mortgage Insurance, Title Insurance and Hazard Insurance. Mortgage insurance protects the lender and is required if the loan-to-value exceeds 80%. Title insurance insures that the property is free and clear of all liens. Hazard insurance is for loss caused by fire, wind and other natural disasters. Borrowers must choose a company for Hazard Insurance prior to sending their documents to the Title Company for closing.
Closer - File is delivered to the closer, whose main purpose is to coordinate the closing. The closer makes sure all conditions are met and sends the necessary documents to the Title Company to be signed.
Title Company - This is where you will settle all the details of the purchase. Sign all documents and receive title to your new home.
Moving Day - House warming!

Choosing the Best Loan

Mortgage Type	Monthly Payment	Interest Rate	Rate Changes	Total Interest Paid	Build Equity
30-year Fixed Rate Mortgage	Average	Average	Never changes	Average	Average
20-year Fixed Rate Mortgage	Slightly higher	Average	Never changes	Average	Slightly faster
15-year Fixed Rate Mortgage	Notably higher	Notably lower	Never changes	Notably lower	Notably faster
5/1 Adjustable Rate Mortgage (ARM)	Lower for first 5 years then may change each year	Lower	Fixed for the first 5 years (then may change once a year)	Varies depending on interest rates	Average
3/1 ARM	Lower for the first 3 years then may change each year	Notably lower	Fixed for the first 3 years (then may change once a year)	Varies depending on interest rates	Average
5/1 Initial Interest-Only Payment ARM	Notably lower for first 5 years because only interest is required then may adjust each year	Lower	Fixed for the first 5 years (then may change once a year)	Varies depending on interest rates	Does not build equity for the first 5 years

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