Home Buying Tips

Before you go house hunting, be sure to give us a call first.  You’ll find our mortgage experts have the expertise, and will take the time, to lead you through the home loan process.  You can rest assured that we’ll be there step-by-step ... from the day you apply for your loan, to the moment you’re holding the keys to your new home.  Here’s what you can expect in five easy steps:

STEP 1:  Meet With A Loan Officer For Pre-Qualification 

A mortgage loan officer from The Peoples Mortgage Services will sit down with you to explain what to expect when buying a home and will answer any questions you have.  They’ll meet at a time and location that is convenient for you.  To get the greatest benefit from this initial meeting, please bring the following:

• Income – Your last two paycheck stubs.
• Expenses – Accurate listing of monthly obligations.
• Bank Accounts – Your last two statements for checking, savings and CDs.
• Loans & Credit Cards – Balances due to banks, finance companies and credit card companies (bring copies of your most recent statements).
• Tax Return – Bring last year’s tax return, or the last two years if you are self employed.
• Equity In Your Home – If you own your own residence, equity is the difference between what your house is worth and what you owe.  Copies of the most recent property tax assessment and monthly mortgage statement would be helpful to have.

STEP 2:  Pre-Qualify For Your Loan & Go House Hunting 

An important step in purchasing a home is determining what you can afford to spend on the monthly mortgage payment. That amount depends on:

• Your employment status
• Current debt
• Family size
• Other factors such as current interest rates

We will quickly evaluate your financial situation and give you an on-the-spot estimate of what you can afford.  Then you’ll be ready to shop for homes within your price range ... saving you time, effort and money.  We can even pre-approve your application so that you can shop with confidence when making an offer on the home of your choice.

STEP 3:  Apply For A Loan 

During your initial meeting with our mortgage loan officer, you’ll receive a loan application requesting additional financial, employment and personal information.  The more complete you are in supplying this information, the faster we’ll be able to process, approve and close your loan.

The Peoples Mortgage Services loan officer will ensure you apply for the right type of loan by explaining your payment options and terms.  They’ll help you evaluate a fixed-rate versus an adjustable-rate mortgage.  They’ll also help you explore special loan programs such as FHA and VA (see full descriptions under the “Special Home Loan Financing” section of this brochure).  We do more to help you select a mortgage that’s right for you!

STEP 4:  Consider All The Costs 

Once you’ve decided on the home you want, you need to be aware of expenses beyond your monthly mortgage such as property taxes, insurance and utilities.  Once you’ve researched the information below, pass it on to your mortgage loan officer for review before you sign a real estate contract.

• For Previously Owned Homes – Ask the present owners or your real estate agent for records of these expenses.
• For New Homes

  Property Taxes – Request estimates through your local tax assessor’s office.

  • Homeowner’s Insurance – Contact your insurance agent to obtain an estimate.
  • Utilities – Most public utility companies will provide an expense estimate based on the size and construction of the home.

We’ll also work with you to make sure you fully understand your closing costs prior to your loan closing so you can plan expenses – and avoid last-minute surprises.  Closing costs vary depending on financing, but they generally include items such as: 

• Down payment
• Appraisal fees
• Prorated property taxes and insurance
• Attorney’s fees
• Lender’s fees and expenses

STEP 5:  The Loan Closing

The final stage in the mortgage process is the loan closing. It's the date on which the title for the property passes from the seller to the buyer. In other words, the day you take legal ownership of your new home! During closing, all details are finalized, checks are exchanged, paperwork is completed, fees are paid and you receive the deed to your property.  The meeting usually is conducted at the bank, or an attorney's office, and lasts about an hour.

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