Absolutely! Getting pre-qualified puts you in a better position when making an offer on a house you want to buy. It also prevents you from looking at what you consider your dream home only to find out it is out of your price range. Your Mortgage Loan Officer can also identify any issues with your credit history that could be an obstacle to being approved for a home loan.

• Date of birth of applicants
• Social Security number of applicants
• Income documentation such as 2 years of W-2’s and current paystubs. If you are self-employed, the most recent two years of tax returns.
• Your income amount from your current place of employment
• Bank Statements
• Other assets such as divorce decree or child support agreement if applicable

It depends on the type of loan. Some loans, such as Rural Development and VA, require no down payment. Others require as little as 3% down. Many people have the misconception that they need to have 20% down, but there are plenty of options available where a much smaller down payment is required. There are also several down payment assistance programs that you may qualify for.

Time on the job is one thing that factors into your overall credit profile. However, it is often acceptable to be starting a new position as long as your employer does not indicate there is a probationary period or you are paid on a commission basis.

Earnest money is a deposit that a buyer makes that shows the seller you are committed to the transaction. As long as you complete the home buying process, that money is credited to you at time of closing.

At American Bank and Trust, we do not sell the majority of our loans, though many other banks do. That can be very important when you have questions about your loan after closing, so it is something you should think about when choosing which bank to get your home loan at.

Lenders need to make sure you didn’t recently borrow money for the down payment, or that the seller hasn’t provided you with an incentive to purchase their home. Deposits like your paychecks are fine because they are regular credits and can easily be explained but any unusual large deposits must be sourced. Large deposits might cause difficulties or delays in securing a loan, so it is best to wait until after a loan is secured to avoid problems.

Most certainly. Realtors are a very important part of a successful transaction. They know what other homes in the neighborhood have sold for and can present your offer to the seller in the best possible light, which is so important in this seller’s market environment. Typically, the seller pays the realtors so there is little or no cost to you as a buyer.

Yes! Homebuyer Education classes are beneficial, especially for first time homebuyers. Even if it is not a requirement for your loan program, this kind of education will be invaluable over the life of your loan. The class teaches you about the loan process, the additional costs of owning a home, etc. You may actually qualify for some discounts if you complete a course. Several non-profits offer online and/or in-person options, as well.