American Home Bank specializes in residential finance. The Bank offers residential purchase, refinance, government-backed and reverse mortgage programs as well as construction and construction to permanent financing.
At American Home Bank, our mission is to help people, buy, afford and enjoy the home of their dreams. We take this mission very seriously. Our personnel at all levels recognize the privilege granted and responsibility involved in assisting customers with a home purchase or refinance.
Purchasing a Home
Purchasing a home is an exciting process. Determining what you can afford, finding the right home and securing a mortgage loan are all important steps in this key financial undertaking. That’s why it is important to surround yourself with competent, experienced advisors who can guide you through the process of buying, affording and enjoying the home of your dreams.
For many consumers, their personal residence is the single largest investment they will ever make. For most, a mortgage makes this investment possible. When you take out a mortgage loan, you are making a commitment to make payments over a period of time. Normally, these payments include both principal and interest. In most cases after these payments conclude, homebuyers own their home free and clear.*
How do you know if you are financially prepared to buy a home?
Contact a mortgage loan officer early in the process to help you determine how much you can afford to borrow. Once you have a good idea of what you can afford, you will be in a better position to begin the home search.
Items that may impact your ability to borrow include:
- Salary and other income
- Expenses and debt obligations
- Credit score and history
- Assets and down payment availability
By subtracting your monthly expenses from your income, you will get a sense of how much you can afford on a monthly basis. A mortgage loan officer can help you establish a more in-depth budget to assist you in your thinking and planning process.
Finding the Right Mortgage Loan
In addition to a mortgage payment, homebuyers should be ready to accept the long-term financial responsibility of owning a home. This involves insurance expenses, taxes, home repair and maintenance, and other expenses – expected and unexpected - related to establishing and maintaining your residence.
What type of loan is right for you?
There are many types of loans to meet the varied needs of homebuyers. To name a few, there are loans for new construction, government-backed loans, loans for renovating a home, loans with fixed rates and adjustable rates, and loans of varying terms. Your mortgage loan officer will help you review the possibilities and provide you with options from which to choose.
Homebuyers should also evaluate other aspects of the mortgage loan, including points, fees and costs to close the loan. Take the time to ask questions and fully understand the various aspects of your mortgage loan. Ultimately your mortgage loan officer will supply you with a Good Faith Estimate (GFE), which will detail the costs, points and fees involved with your mortgage loan. Review it carefully and be sure that you are comfortable with every item listed on the GFE.
The answers to the following questions will help your loan officer make recommendations tailor-made to your situation. Be prepared to discuss these and other issues with your loan officer.
- How long do you plan to live in your new home?
- When would you like to have your mortgage paid off?
- Do you prefer a fixed or fluctuating payment?
- Do you expect your income or finances to change?
- How much of a down payment would you like to make?
- How does your credit history impact your ability to qualify for a loan?
A person’s credit score is based upon his or her credit history. There are many factors involved in establishing and maintaining good credit.
- Have credit cards and other debts been paid on time?
- Have other loans been repaid as promised?
- Have you established and used credit responsibly in the past?
A person’s credit score may impact his or her ability to qualify for a particular type of loan or may affect the mortgage rate offered. It is never too soon to begin to establish good credit practices.
Mortgage Approval Process
A formal loan approval is a verified evaluation of your creditworthiness. By having a loan approval in hand, you will have the power to shop for your home with confidence. A loan approval tells sellers and builders that you are ready to act, allowing you to move quickly when you locate your dream home.
To provide a loan approval, your mortgage loan officer will need to verify the information you have supplied. Be prepared to have the items listed below on hand at the time of application. These items will allow your loan officer to verify the information you supplied and bring you one step closer to a loan approval.
- Most recent 12 months’ rental or mortgage history (canceled checks showing payment)
- 1 month of most current pay-stubs from all current employers
- 2 years of most recent completed and signed complete federal tax returns and W-2’s for all employers
- Name, addresses, dates of employment and salary for all employers for last 2 years
- Most recent 3 months’ bank statements (all accounts)
- Social security numbers of all borrowers
- Sales agreement on the land and legal description of the property (if applicable)
- Open loans - addresses, account numbers, balances and monthly payments or most recent statement if available
- If self-employed, complete set of most recent complete personal and business tax returns for last 2 years, (1099’s, K-1, etc.), plus year-to-date profit and loss statement
During the loan application and throughout the entire mortgage process, our experienced professionals are ready and willing to answer your questions.
Contact American Home Bank today and experience the satisfaction of home financing with a team of experts working together to help you buy, afford and enjoy the home of your dreams.
*Exceptions to this apply such as a reverse mortgage or an interest-only mortgage. Your mortgage loan officer can educate you on the nuances of various mortgage loans.
The contents on this site are provided solely for general informational purposes. Consult your respective mortgage advisor, tax professional, financial or legal consultant to discuss your unique situation.