homebuyerg u i d e b o o k

the search for your dream home

a d d r e s s

a d d r e s s

a d d r e s s

a d d r e s s

f av o r i t e pa r t

f av o r i t e pa r t

f av o r i t e pa r t

f av o r i t e pa r t

n ot e s

n ot e s

n ot e s

n ot e s

p r i c e

p r i c e

p r i c e

p r i c e

l e a s t f av o r i t e pa r t

l e a s t f av o r i t e pa r t

l e a s t f av o r i t e pa r t

l e a s t f av o r i t e pa r t

Buying a home is one of life’s most exciting adventures, and being a homeowner gives you the opportunity to put down roots, become part of a community, and build your wealth for the future. This Homebuyer’s Guidebook has everything you need to get acquainted with the homebuying process, from getting a mortgage to receiving the keys to your new home. As you move through the process, remember, we’ll be here to answer any questions you have and guide you each step of the way, from prequalification to closing.

getting started

g e t p r e q u a l i f i e d

f i n d a h o m e

g e t a m o r t g a g e

c l o s i n g

m o v e i n !

conventionalConventional mortgages can come with low closing costs and flexible payment options. 3%

jumboJumbo mortgages are designed for purchases or refinances of properties of higher value. 5%

fhaFHA loans have less rigid qualification guidelines and lower down payment requirements. 3.5%

vaVA loans offer 100% financing to eligible military personnel, veterans and their spouses. 0%

usdaUSDA loans are a good option if you are considering purchasing a home in a rural area. 0%

down payment assistanceDown payment assistance may be available. Please consult with your Mortgage Banker. 0%

Before you start looking for a home, work with your loan officer to get prequalified, which will let you know how much home you can afford. This can help you narrow your home search to houses within your budget, give you an idea of how much you’ll need for a down payment, and help you identify budgeting goals to work toward.

get prequalified

min. down paymentava i l a b l e lo a n p r o d u c t s

a p p ly o n l i n e at w w w. b a n k s o u t h m o r tg a g e . co m

□ co n ta c t m o r tg a g e b a n k e r □ o b ta i n p r e q u a l i f i c at i o n l e t t e r

House hunting can be an exhilarating yet overwhelming process. What should you look for, and how do you keep track of the features you loved, as well as the things you didn’t? Here are just a few things to consider each time you view a new property.

□ m a k e a n o f f e r □ g o u n d e r co n t r a c t

find a home

h o u s e h o u s e h o u s e h o u s e

Lot Size

Home Features

Neighborhood

Commute

Schools

Safety

Community

Amenities

Walkability

Because no two borrowers’ situations are alike, BankSouth Mortgage provides a variety of purchase, refinance, and home equity mortgage options to meet your individual needs. If you haven’t already, apply online at www.banksouthmortgage.com.

1. Submit your application

2. Provide requested documents

3. Review and sign your disclosures, including your Loan Estimate

4. Appraisal

5. Loan processing

6. Underwriting

7. Review and sign your Closing Disclosure

8. Closing

9. Move In

Loan Officer: Your guide from start to finish. Helps you determine what you can afford, choose a loan program, and keeps you informed throughout the process

Mortgage Banker Assistant: Assists with getting your file ready for processing

Processor: Reviews your loan application to make sure its complete and accurate before giving it to the underwriter

Underwriter: Makes the final decision on your mortgage loan approval based on your specific financial situation

get a mortgage

m o r tg a g e p r o c e s s

yo u r m o r tg a g e t e a m

documents needed

The following is a list of the documents that will be requested at the beginning of the loan process.

Additional documents may be required dependent on your circumstances.

□ 30 day’s paystubs □ Last 60 days statements

for all assets □ Copy of driver’s license □ Last two year’s of tax

returns and W2s

Your monthly mortgage payment is made up of the following elements:

Principal: The amount you’re borrowing

Interest: What it costs to borrow the money for your home

Taxes: Real estate or property taxes

Insurance: Homeowner’s insurance and mortgage insurance, if applicable

*Please note that this diagram may not be proportional.

principal & interest

taxes

insurance

Mortgage Insurance (MI) protects the lender in the event that you fall behind on your mortgage payments. If you put down less that 20% when you buy your home, you’ll likely have to pay MI – also referred to as Private Mortgage Insurance (PMI) or a Mortgage Insurance Premium (MIP), depending on the type of loan product you choose.

a n ato m y o f a m o r tg a g e pay m e n t

w h at t y p e o f lo a n i s r i g h t f o r yo u ?

w h at i s m o r tg a g e i n s u r a n c e ?

fixed rateA fixed rate loan provides a fixed rate throughout the life of the loan, meaning the rate will not change. A fixed rate loan may be the better choice if you want stable payments and plan to live in your home long-term.

adjustable rate mortgageWith ARMs the interest rate will be fixed for a shorter period of time and can then fluctuate. ARMs can either go up or down, which will affect your monthly payment. An ARM may be a good option if you only plan to live in your home for a few years.

v s .

b y t h e way,BankSouth Mortgage also offers no MI options to those who qualify. Consult with your loan officer for more details.

annual p ercentage rate ( apr ) : The cost of obtaining a mortgage, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees.

c lo s i n g co s t s : Typically includes points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, processing fee and other costs associated with your loan that are collected at closing.

a p p r a i s a l : A report, ordered by the lender and conducted by a licensed appraiser, that estimates the fair market value of a property.

w i r e t r a n s f e r : The method that you may be required to send funds to the closing attorney to pay for your down payment and closing costs. This can take between hours to several days depending on your banking institution, so it’s important to arrange your wire as soon as possible before your scheduled closing.

s e l l e r co n t r i b u t i o n : The amount the seller may contribute to the buyer’s closing costs and/or pre-paid costs. These funds cannot be applied to a down payment.

e a r n e s t m o n e y : The amount of money the seller requires you to put down to show your commitment to your purchase offer. The money typically is applied towards your down payment and/or closing costs.

a m o r t i z at i o n : The gradual repayment of a mortgage loan, both principle and interest, by installments, expressed in terms of the number of months required to repay the mortgage loan in full (also known as the amortization term).

t e r m s yo u s h o u l d k n o w

t i p s f o r t h e lo a n p r o c e s s

□ f i n a l i z e yo u r lo a n t e r m s □ lo c k i n yo u r lo a n

When you go under contract, you may want to go out and celebrate by buying new furniture or appliances, but doing so could jeopardize your final loan approval. Here are some steps you should avoid taking until you’ve closed on your home.

d o n ’ t a p p ly f o r c r e d i t (such as a new credit card, car loan, or financing for furniture or appliances)

d o n ’ t m a k e m a j o r p u r c h a s e s

d o n ’ t l i q u i d at e f u n d s

d o n ’ t m a k e l a r g e d e p o s i t s

d o n ’ t s w i tc h j o b s o r c h a n g e yo u r i n co m e s t r u c t u r e

All of these factors could impact your final closing, even if you’ve already been approved.

1

2

3

4

5

e x t e n d e d lo c k p r o g r a mAt BankSouth Mortgage you can take advantage of today’s low rates without risking missing out on a better one. We are proud to offer locks ranging from 60-240 days with a rate float down option. For more information, contact your BankSouth Mortgage Loan Officer today!

i f yo u r a n a b a n k , yo u ’ d r u n i t l i k e t h i s

At BankSouth, we believe that when it comes to banking, having a personal relationship is key. We’re proud to provide the benefits of relationship banking in addition to the modern conveniences you expect from your bank. Allow us the opportunity to show you the difference of having a true banking ally.

As a local bank, we value what you bring to our community, and we are delighted to offer a variety of products to help meet your needs.

– h a r o l d r e y n o l d s , c e o b a n k s o u t h

t h e c u lt u r e o f o u r b a n k . . . h a s a n dalways will be about relationships.

f e at u r e s o f a b a n k s o u t h c h e c k i n g a cco u n t• Four ATM fee refunds per statement cycle• Mobile Banking1

• Mobile Check Deposit1

• Popmoney®2

• Bill Pay• Purchase Rewards3

• Finance Works• Text Banking1

to o p e n a n a cco u n t, g o to w w w. b a n k s o u t h . co m !

w h o m ay b e p r e s e n t at c lo s i n g

w h at yo u s h o u l d b r i n g to c lo s i n g

w h at to e x p e c t at c lo s i n g

□ p r e pa r e f o r f u n d s r e q u i r e d at c lo s i n g □ k e e p c lo s i n g d o c u m e n t s i n a s a f e p l a c e

Closing is the final part of the homebuying process where you commit to your mortgage and become the legal owner of your new home. On closing day, you’ll sign your loan paperwork, and the property title will be transferred into your name.

closing

• You (the buyer)

• Buyer’s Agent

• Seller

• Seller’s Agent

• Closing Attorney

□ Government issued Photo ID □ Cashier’s check or proof of wire transfer to cover your down payment and closing

costs (please check with your closing attorney for confirmation of wire or cashier’s check acceptance)

□ Checkbook (in the event of any final adjustments)

Be prepared for a lot of paperwork. You’ll likely be required to sign two, possibly three, copies of each document. Plan for this to take a few hours. Don’t rush it, and be sure to ask a lot of questions. If something doesn’t make sense to you, ask.

□ s e t t l e i n to yo u r n e w h o m e □ lo o k o u t f o r u p d at e s f r o m yo u r lo a n o f f i c e r !

move in!

You’ve finally made it past closing. Now it’s time to move in! Below are some final reminders to help you get started on the right foot as a homeowner.

□ Unpack and settle in

□ File your closing packet in a safe place

□ Change your address with:• The US Postal Service• Your bank and credit card companies• The Department of Motor Vehicles (update your ID or driver’s license)• Your insurance company, internet provider, and phone company

□ Switch utilities to your new address• Internet/cable• Water• Electric• Gas• Garbage

□ Apply for Homestead Exemption with your county and/or city for property tax purposes

□ If needed, register your kids for school

□ Explore your new neighborhood

□ Meet your neighbors

i m p o r ta n t co n ta c t i n f o r m at i o n

co m pa n y

co m pa n y

p h o n e n u m b e r

p h o n e n u m b e r

n a m e

n a m e

e m a i l a d d r e s s

e m a i l a d d r e s s

h o m e o w n e r ’ s i n s u r a n c e

h o m e o w n e r ’ s a s s o c i at i o n

co m pa n y

co m pa n y

co m pa n y

co m pa n y

p h o n e n u m b e r

n a m e

p h o n e n u m b e r

p h o n e n u m b e r

p h o n e n u m b e r

w e b s i t e

w e b s i t e

w e b s i t e

e m a i l a d d r e s s

h o m e wa r r a n t y

h va c

t e r m i t e a n d p e s t co n t r o l

p l u m b e r

t y p e s o f r e f i n a n c e s

r e a s o n s to r e f i n a n c e

w e ’ r e h e r e to h e l p yo u r e f i n a n c e i n t h e f u t u r e !

• Rate-and-term: refinance the remaining balance of your mortgage with a new interest rate and term for your loan

• Cash-out: refinance the remaining balance of your mortgage plus additional funds to take out as cash

• Rates drop resulting in a lower monthly payment

• Get a cash-out refinance to access funds to use for renovations, paying off debt, and/or paying for large expenses such as tuition or medical bills

• Convert an Adjustable Rate Mortgage to a Fixed Rate Mortgage

• Change from an FHA loan to a different type of loan to eliminate mortgage insurance

• Extend the term of your loan for a lower monthly payment

At BankSouth Mortgage, we are committed to serving as your trusted advisor long after your loan closes. Market conditions and circumstances change over time, and it may be in your best interest to refinance at some point in the future. Here are some basics of refinancing, and, as always, we are happy to discuss your financing options and review your questions at any time.

h o m e e q u i t y l i n e s o f c r e d i tWith equity in your home you may be able to draw funds from your home if needed with a Home Equity Line of Credit!

Part of being your lender means not just guiding you during the mortgage process but also staying in touch after your loan closes. If you ever have questions about your mortgage, just reach out to us. We’re here to help.

we’re here to help

Equal Housing Lender. BankSouth Mortgage Company, LLC. NMLS # 690971. Terms subject to change without notice. Subject to credit and property approval. Property insurance, and if applicable, flood insurance required. 1 Message and data rates apply from your wireless carrier. 2 Popmoney is a registered trademark of Fiserv, Inc., or its affiliates. Terms and conditions apply. Popmoney personal payment services offered at www.Popmoney.com are provided by or through CheckFreePay Corporation, a licensed money transmitter, and/or its affiliate CheckFreePay Corporation of New York, which is licensed and regulated as a Money Transmitter by the New York State Department of Financial Services, each a wholly owned subsidiary of Fiserv, Inc. 3Consult with your personal banker for more information regarding the BankSouth Complete Checking account and its benefits. December 2017.