Pre-Qualification and Mortgage Financing Tips for New Homebuyers

Financing a new home can be daunting… but it doesn't have to be. First Mid can help. Our mortgage lenders live and work in your community, and are ready to answer your questions.

To help you prepare for this milestone, we are sharing some helpful tips for first-time homebuyers, so you'll be ready to make your dream a reality.

First Mid Bank & Trust can help you:

• Apply for pre-qualification so you can shop for a new home with confidence, knowing how much you can afford
• Explore down payment assistance programs
• Get answers from local lenders

What is the value of the pre-qualification process?

It's an important first step. When filling out our pre-qualification application, you will provide information about your income and debts. This helps us determine how much you can afford to pay. There are different types of mortgage financing options available. After you are pre-qualified, our mortgage lenders can help you determine which option is right for you.

What are the key factors in pre-qualification?

First, we look at your ability to repay. Your current employment, debt obligations, and total income determine your ability to repay a mortgage. Second, we look at your willingness to repay, and how you have fulfilled previous financial obligations. This is why we look at your credit report and/or your rental payment history.

How can I improve my credit score?

What are the steps at First Mid for a mortgage pre-qualification?

Getting pre-qualified is free and you are under no obligation to secure a loan with us.

• First, determine how much you can afford. Use our online calculators to help determine your monthly payments for a particular loan type.
• Find a mortgage lender near you and click "Apply Now" to start your pre-qualification application online.
• Once your submission is received, we review your application and get back to you quickly.

Being pre-qualified will give you confidence when talking to a real estate agent or seller. Pre-qualification gives you negotiation power and an advantage over other potential buyers because it indicates you are a serious buyer.

Which type of mortgage financing is best?

One way to start is to think about how long you plan on keeping the mortgage. If your plan is to sell your home in a few years, an adjustable rate loan may be a good choice. If your plan is to keep your home for a longer period, a conventional loan may be the best choice. Conventional loans are available in a variety of terms, either as an adjustable rate mortgage or as a fixed rate mortgage, ranging from 10 to 30 years. Our experienced First Mid mortgage loan officers can evaluate your situation and recommend the most suitable mortgage financing. Once you have determined which mortgage loan option is best for you, you will know the minimum down payment amount you will be required to provide.

Here is a list of our main mortgage loan options:

• Conventional Mortgage Loan
• Rural Development Mortgage Loan
• FHA Mortgage Loan
• VA Mortgage Loan

For a full list of First Mid mortgage options, click here.

What if I need help with my down payment?

If you're ready to buy, but haven't saved enough for the traditional 20% down payment, there are mortgage options that may be right for you. Many of our low down payment mortgage options require a down payment of 3.5% of the purchase price or even less if you quality!

With down payment options and great rates, we can be your trusted guide throughout every step of the home buying process! Start your journey with First Mid Bank & Trust.

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