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First National Bank and ICBA Provide Tips for First-Time Homebuyers

With the summer real estate season upon us, many Americans are considering purchasing a home over the next few months. The total mortgage originations market is estimated to be around $1.2 trillion in 2015. With that in mind, the Independent Community Bankers of America® (ICBA) and First National Bank are on hand to help homebuyers navigate the mortgage process.

“Buying a home is likely the biggest purchase anyone will make, and community bankers are an excellent resource to help guide consumers through the process,” said ICBA Chairman Jack Hartings, president and CEO of The Peoples Bank Co., of Coldwater, Ohio. “With new mortgage rules and regulations in place, community bankers are available to help potential homebuyers by providing accurate and well-informed information. Community bankers across the country can help their neighbors in their local community find mortgages that fit their financial needs, budgets and lifestyles.”

ICBA and FNB offer the following eight suggestions for perspective first-time homebuyers:

  • Discuss your finances with FNB before you begin looking for a home. It is important to stay within your means when purchasing a house.
  • Gather and organize paperwork and documents. Items you should have readily available include paycheck stubs, W2 forms, tax returns and bank and investment statements for the last two years.
  • Know your monthly income and budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.
  • Check your credit report before applying for a loan. Credit reporting agencies must give you one free report annually.
  • Maxing out credit cards or falling behind on other loan payments could create issues when applying for a mortgage. Keep tabs on your spending habits before applying for a mortgage.
  • Work with FNB to figure out how much you can borrow and which mortgage product is right for you. Your local community banker can explain available mortgage options- including rate adjustments, fees and other loan features - so you are prepared for the loan closing and not surprised down the road.
  • Learn what current mortgage rates are. Your community banker can help you understand how that translates into monthly mortgage payments.
  • Check with your state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.

“There are plenty of steps that need to be completed to ensure the mortgage finance process goes smoothly and community banks are on hand to help with this,” said FNB President Larry Ziglar. “We take pride in helping our customers determine the most affordable mortgage options available and can provide additional financial guidance if needed.”

Talk to one of our lenders today to discuss your options.