There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to remain in your house. First Keystone Community Bank can help you evaluate your choices and help you make the most appropriate decision.

When you start looking to buy a home, you want to know the amount you can qualify for, the terms of the mortgage, and the estimated closing costs. A qualified buyer is an informed buyer. Once you’re prequalified, you will save time when looking at homes, your realtor will know the price range of homes you should be looking at, and your seller will know you can get a mortgage.

There are four areas we consider when evaluating your mortgage application: your income, funds you have available for down payment and closing costs, your credit history, and the value and condition of the subject property. Below is an example of items commonly requested during the mortgage application process:
• 4 most recent paystubs
• 2 years W-2’s
• 2 years complete Federal Tax Returns
• 2 months most recent, complete (including all pages) bank statements for all checking/savings accounts
• Sales agreement, if you’re making a purchase mortgage request
• Valid photo identification
Your Mortgage Loan Consultant will review your application to determine if additional documentation is required.

The amount of cash needed to purchase a home depends on your down payment and the total of the closing costs. We can discuss several options for low down payments and closing cost scenarios to work within your budget.

For most homeowners, the monthly mortgage payments include three separate items:
• Principal: Repayment on the amount borrowed
• Interest: Payment to the lender for the amount borrowed
• Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard and/or flood insurance and property taxes. This feature may be optional, in which case the fees may be paid by you directly to the tax collector and insurance company.

A “first time homebuyer” is an individual who has not had any ownership in a principal residence prior to the date of purchase of the property. With co-borrowers, only one co-borrower has to meet this requirement. Your Mortgage Loan Consultant can provide several great options for first time homebuyers.

Private Mortgage Insurance, or PMI, may be required when an applicant makes a down payment of less than 20% of the home’s purchase price. While the cost of the mortgage insurance is added to the monthly payment amount, it can help you move into your dream home by requiring a smaller down payment.