First Time Home Buyer Guide

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Buying a home is a big milestone. If you’re considering getting a mortgage home loan to fund your dream home, congratulations! You are on the road to homeownership.

While buying a house may seem like a complicated process, it can be easier to understand if you have a general idea of the basics involved.

So whether you’re a first-time homebuyer or plunging back into the market after being settled for a while, you’ll find our easy-to-follow Mortgage 101 guide packed with information about mortgage home loan types, interest rates, payment options, and more.

The Advantages of Going to Your Local Bank for a Mortgage

Simply put, at local banks like Mercer Savings Bank, customers are treated as unique individuals. Local banks look at the whole picture—not just the credit score. They are more likely to take extra time to look at other factors that would qualify an applicant for a mortgage.

Some other advantages of a local bank include:

They know the local real estate values in your area.
They offer competitive rates.
They typically work and live in the community and can answer any questions you may have.
They are generally more willing to work with customers who have less than perfect credit scores.
They’re much easier to get into contact with versus an online lender.

What to Expect When Applying for a Mortgage Home Loan

When you’re ready to apply for a mortgage, it’s important to keep in mind that it typically takes 3-4 weeks to close on that loan. This means it could be about a month before you will be able to pay for and get into your new home. This timeline can vary depending on how quickly an appraisal on the house is completed, but that’s generally the time frame you can expect between applying for the mortgage and having everything all set for purchase.

Some people have questions about when to seek a mortgage—before or after you have a house picked out. Some people choose to visit their bank first to see what they can afford before house hunting, while others already have a house in mind but need to determine if they qualify for a mortgage. It’s up to your personal preference, although it might be safer to see what you qualify for and can afford before getting too attached to a house!

One important thing to note: the maximum loan amount you qualify for at the bank doesn’t necessarily take into account your other budget items like cell phone, utilities, student loans, etc. That’s why it’s important to create your own budget with a mortgage payment in mind to see what loan amount is feasible for the lifestyle you want to have.

What to Bring to Your First Meeting with a Bank Representative

Your local bank representative will let you know if you need any other documents during the loan process, but for your first meeting it’s a good idea to bring the following: