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Educate Yourself Before Buying a
Home |
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With so
many options available to homebuyers, it can be a bit confusing to know
where to start. |
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“Owning a
home is a major step that shouldn’t be taken lightly,” said John Kakuk,
Assistant Vice President & Loan Officer at The Stephenson National Bank
& Trust (SNB&T). “With the inundation of home mortgage advertising, it
is best to educate yourself on the many options before making such an
important decision. That way you will have a clear understanding of the
process.” |
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SNB&T
seeks to educate consumers and arm them with information on common bank
products. Knowledge is the key to help customers in the decision-making
process. In order to help consumers traveling the path to owning their
own home, SNB&T offers these tips from the American Bankers Association
(ABA): |
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Know
what you can afford to buy.
Before you jump into buying a home, first decide if you can afford
to buy. Use an online calculator to determine if you can afford to
borrow and if so, how much. ABA provides an online calculator here:
http://www.aba.com/aba/cgi-bin/rentNT.pl.
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Do
your homework.
When considering adjustable-rate or interest-only loans, it is
important to look at both current and future income. Take into
account that the monthly payment on these loans will rise, but will
your salary?
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Consider all the costs. A
lender will review costs such as fees, closing costs, points, home
insurance, etc. Home buyers should also consider repairs and
maintenance costs that they will now be responsible for.
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Organize your finances before you go to the bank.
While each bank may require different documentation, at a minimum
you will need: pay stubs; tax returns; financial statements (less
than 60 days old); copies of additional monthly payments such as car
loans, credit cards, student loans, etc., and any additional
information (such as proof of additional income) that will help your
banker to positively evaluate your credit request.
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