First Time Home Buyers Guide 20 Things to Know About Getting a Mortgage

• Lender.• Realtor.• Insurance Agent.

1. Gather a Trusted Team

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• No Money Down.• Low Money Down.• 10% Down with no PMI.• Low down payment with PMI.• Maine Housing First Time Home Buyers Program.• Mortgage providers such as VA, MSHA, RD.

Ask an Atlantic Mortgage Development Officer about the best option to fit your financial needs.

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2. There are Multiple Mortgage Options

3. MaineHousing First Time Homebuyer Program• A First Home Loan from MaineHousing can be one

of the most affordable ways to buy your first homeor return to home ownership.

• Receive $3,500 advantage towards down payment& closing costs by attending the Maine Housing FirstTime Homebuyers Program*.

• Maine Housing course is $30 per person/$50 percouple or $99 per person online. Atlantic will refund the cost of the course

when you close your loan with Atlantic.

*The $3,500 Advantage towards down payment and closing costs is included with the rate. A hoMEworks homebuyereducation class is required to receive the $3,500 Advantage.

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• APR – Annual Percentage Rate.• DTI – Debt to Income ratio.• FHA – Federal Housing Administration.• LTV – Loan to Value ratio• PMI – Private Mortgage Insurance.• PITI – Principal, Interest, Taxes and Insurance.

And there are a lot more acronyms you may hear or see.

4. Common Mortgage Terms to Know

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5. Get PreapprovedGet a jump start on the process by getting preapproved for your loan. Advantages include:

• Search confidently knowing you can afford it.

• Show sellers and real estate agents you are seriouswith your offer.

• Eliminate credit surprises.

Atlantic has an easy pre-approval process. Simply call 800-834-0432 or online at atlanticfcu.com.

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6. DocumentationHaving your paperwork in order helps expedite the entire process: • Current Identification.• Recent Pay Statements.• 2 years W-2’s.• 2 years tax returns if self employed or have

ownership interest in a business.• 3 years tax returns are required for some loan

programs, such as MaineHousing First TimeHomebuyers Program.

Additional information will be needed with full application once under contract.

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7. Know Your Budget & Credit Situation• Your price range will depend on the monthly payment

you can afford.

• Your credit score can impact what programs you might qualifyfor, and also affect:

Down Payment Requirements

Acceptable Debt Ratio.

Fees, Interest Rate.

• Get your credit reports from all three bureaus – FREE:

Transunion - www.transunion.com

Equifax – www.equifax.com

Experian – www.experian.com

• Atlantic can help secure your credit score during yourpre-approval.

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8. Establish or Improve Your Credit

• Don’t open too many credit lines at once.

• Always make payments on time.

• Keep balances on your credit cards (capacity) under50%.

Ask your Atlantic Mortgage Development Officer fordetails. Be PATIENT! There is no such thing as a quick fix

for credit history.

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9. What a Lender Wants to See

• Stable income – 2 years history with sameemployer, or similar field and evidence it willcontinue.

• Proof of Funds for Down Payment/ClosingCosts (2 months full bank statements)

• Responsible handling of finances: History of regular on-time payments. Maintaining capacity on lines of credit. Manageable debt level (debt ratio).

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10. Closing Costs DefinedClosing Costs are the fees incurred in a real estate transaction. Costs include (but are not limited to) loan origination fees, appraisal fees, title searches, title insurance, survey, taxes, deed recording fees and credit report charges.

Some programs allow seller to help pay.

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11. What is Included in a Mortgage Payment

• PITI – Principal, Interest, Taxes, Insurance.• PMI – Private Mortgage Insurance (if applicable)

• “Escrow” account – holds the funds for yourProperty Taxes and Homeowner’s Insurance.

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12. What Happens When Under Contract

• You or your agent will send Atlantic a copy ofthe fully executed Purchase & SaleAgreement (P&S) and copies of checkswritten for earnest money deposit.

• You will sign your application and disclosuresand be requested to provide anydocumentation still needed.

• Start shopping for homeowners insurance.

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13. Insurance Quote InformationWhen shopping for homeowners insurance, in order to

receive quick and accurate rates, it is best to know:

• The square footage of your home.• The construction details such as style, type and

features.• The types of pets you own.• The details about any homeowners insurance claims

for the past 5 years at any location.• Your liability coverage needs.• The year your home was built as well as when any

major improvements were made to roofing, plumbing,heating and electrical systems if over 25 years old.

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14. Now What Happens?• Once everything is gathered, the loan package

is submitted to underwriting.• You will be contacted by an Atlantic loan

processor, who will let you know of anyadditional items requested by underwriting.

• The Lender support team will order theappraisal, title search, mortgage loan inspectionsurvey, as well as the title insurance policy.

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15. Mortgage Loan Inspection

• Generally costs up to $300, paid for by buyer.• Mortgage Loan Inspections (MLI) are required by

Lenders prior to closing on a home to providereassurance to lenders and title holders that therearen't obvious encroachments, or obvious violationof town ordinances.

• An MLI can detect problems with the property thatcould cause you to reconsider purchasing it, ordemand a cure for the certain problem.

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16. What is Title Insurance• Title insurance protects real estate owners and

lenders against any property loss or damage theymight experience because of liens, encumbrancesor defects in the title to the property, that wereunknown at the time of the purchase of the home

• Not to be confused with homeowners insurance.Homeowners insurance is Hazard insurance thatprotects against potential damage to the home inthe future. A title insurance policy insures againstevents that occurred in the past of the real estateproperty and the people who owned it, for a one-time premium paid at the closing.

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17. Final Steps Before Closing

• Completed appraisal is submitted to underwritingfor approval.

• You receive a copy of the appraisal, along with anupdate from the processor Underwriting reviewsfile again for any remaining items/verificationsneeded.

• Once all items are cleared, underwriting will givefinal approval and send the file to Closing.

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18. Clear to Close

• The Lender support team will communicate withthe title insurance attorney to tie up any looseends and prepare the closing documents.

• Closing will be scheduled.• Sign the papers – Congratulations!

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19. Safety Tips• Don’t send sensitive financial data (SSN, account

numbers, etc.) by regular email. If using email – use secure email only (lender or

title company can originate one for you to use).• Always confirm wire instructions with a phone call to

someone you know/trust. Fraudsters have been known to intercept emails

and give false wire instructions to steal money(including attempts in our area).

These are some general guidelines. Different lenders can have different procedures. Depending on your unique situation, there may be additional steps to the process. Be sure to ask questions to know the next stage.

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20. Atlantic is Ready to HelpNicole M. Savage

Mortgage Development Officer NMLS# 500170

Direct (207)373-5140Cell (207)509-8866

nsavage@atlanticfcu.com

Kristin L. Azevedo Mortgage Development Officer

NMLS# 520207Direct (207)373-5153

Cell (207)441-1199 kazevedo@atlanticfcu.com

Atlantic NMLO / NMLS Institution Identifier: 402778

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