At Union State Bank, we are happy to assist you with any financing or general banking questions that you may have as you work through the home buying and selling process. We have multiple branches throughout the South Central Kansas / Central Oklahoma region, and our team of experienced mortgage lenders have been helping people like you achieve their home ownership goals for decades. Applying online is easy takes only a few minutes, click here to get started. Here are a few tips to help you better understand the home ownership process:
Know What You Can Afford
It is important to speak with your lender before you start looking at houses. You will work together to get pre-qualified, which will help you determine what you can afford. By knowing your "pre-qual" amount you can narrow your home search to houses within your budget, understand how much will be needed for a down payment, and identify any budgeting goals to work toward. Your pre-qualified amount is determined by multiple factors including but not limited to your debt-to-income ratio, current assets, down payment, and credit score.
Understand the Expenses
The upfront costs associated with purchasing a home can become a real hurdle if you aren't prepared in advance. Before you buy a home you will need to pay for your earnest money deposit when making an offer, elect to purchase various home inspections, and fund the mortgage down payment. You will also pay closing costs when ownership of the home transfers to you. Everyone's closing costs vary, but some examples include appraisal fee, title service fees, recording fees, origination fees, discount points, and transfer taxes. Once you have taken ownership, you will have a monthly mortgage payment that will include the principal and interest, and may include an escrow payment for taxes and insurance. And don't forget, your home will need regular maintenance and upkeep as time goes on.
Find the Right Home
Now that your budget is set, you are prepared to find the perfect home for you! Help to narrow the search by making a list of the home features you must have and the home features you would like to have. Also, research the neighborhoods to get a better understanding of the homes surroundings. Important factors like neighborhood safety, local home values, and traffic noise may be hard to judge based on a home viewing alone.
Choose your Financing
Different loans have different conditions and terms. Union State Bank offers a full line of mortgage products to fit almost any need: first time home buyers, conventional loans, construction, new home purchases, refinancing, VA/FHA/Rural Housing and home equity lines of credit. Our experienced mortgage lenders are happy to review options to ensure you are making a well-informed choice.
Additional information may be needed during the loan process. You can assist us by being prepared to provide:
- Driver's license
- Last two years W2s / tax returns
- Pay stubs for 30 days
- Social security cards
- Last two months bank statements - all accounts
- Current monthly statements on all investment accounts
- Account numbers, balance, and monthly payment for any open loans, credit cards, mortgage loans, etc.
- If divorced, a copy of the divorce decree including the property settlement section court documents
- If a bankruptcy has been filed in the last seven years, a copy of all bankruptcy court documents
The Loan Process
Once you have submitted your loan application, several steps must be completed before approval. Your mortgage lender will provide you with a loan estimate that details the loan you applied for. Once you decide to continue, your application will be processed to ensure all the necessary paperwork is complete. At this time, an appraisal will be ordered to determine if the sales price is within range of the home's determined value. After processing ensures the file is complete the application and appraisal report are reviewed by underwriting for approval. You will receive a loan commitment letter with all the details of your loan once your application is approved.
What NOT to Do During the Loan Process
- Don't apply for credit - such as a new credit card, car loan, or financing for furniture
- Don't make major purchases - such as furniture or appliances
- Don't liquidate funds or make large deposits
- Don't switch jobs
All of these factors could impact your eligibility for a loan and delay your final closing, even if you've already been approved!
Before You Close
You will need to take a few final steps before you reach the end of your home buying journey, Be prepared for a lot of paperwork on closing day. Ask for copies of your closing documents in advance so that you have plenty of time to review and ask questions. Do a final walk through of the home to ensure the property remained in good condition and any agreed upon repairs were completed. Find out how much money will be needed to close and how to transfer payment. Finally, don't forget to arrange for your new insurance policy. Congratulations, you're a new home owner!
Home Mortgage Disclosure Act Notice: The HMDA data about our residential mortgage lending is available online for review. the data shows geographic distribution of loans and applications; ethnicity, race, sex, age and income of applicants and borrowers; and information about loan approvals and denials. HMDA data for many other financial institutions are also available online. For more information visit the Consumer Financial Protection Bureau's website www.consumerfinance.gov/hmda.