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Buying a Home... for the first time?

Buying a home is one of the most important and involved decisions you'll ever make. To help you through this process, We have compiled this Home Buyer's information for you.There are many pitfalls you can avoid when you are in the market to buy a new home. Here are just a few tips and strategies to help you prepare for success:

Know your credit score.

You may be able to get a better mortgage rate and more favorable loan terms by restructuring some of your balances on credit cards, car loans, etc. Our professionals help you correct errors on your credit report and determine which balances to restructure or pay off in order to improve your credit score.
Know how much you can spend and determine how much you can afford.

Our professionals can help you:

Finance your home based on your monthly payment comfort level

Determine how much cash to use as your down payment and where to get these funds

Understand your before and after-tax monthly payments

Restructure some other debt you may have to free up more monthly cash flow that enables you to improve your home buying budget

Looking at homes

Finding the right home requires patience and determination. Real estate agents can be helpful to buyers because they're knowledgeable about their markets and have access to multiple listing services, which publish directories of all properties listed in a particular market. When you work with a real estate agent, he or she will consult the multiple listing directory to find available properties which meet your needs.The real estate agent will then arrange to show you these properties.

Another advantage of working with a real estate agent is that he or she willusually have information about school systems, tax rates, water and sewer charges, public transportation and other concerns that might affect your decision to buy a particular home.

Deciding to buy

Before you make an offer, it's a good idea to look at as many homes as possible. If you've identified one or more specific areas where you'd like to live, look at enough homes in the area to get a feel for real estate values.

During the negotiation process, you may ask for contingencies in your Purchase Agreement. These are conditions that must be satisfied or you will not be required to go through with the purchase after your offer is accepted. For example, most buyers specify that their Agreement is contingent on their obtaining satisfactory mortgage financing. It's also a good idea to include a favorable home inspection on your list of contingencies.

What can I afford?

A general rule of thumb is that housing expenses (including mortgage payments, insurance, taxes, etc.) shouldn't exceed 28% of the home buyer's gross income. However, many factors can affect how much you can borrow.

Mortgage Plus Home Loans can help you identify these factors and establish a financial balance through our Pre-Approval Program.

We will also issue a Pre-Approval Letter that shows sellers and real estate agents that you are a qualified buyer. In many cases,having a Pre-Approval Commitment Letter will put you in a better bargaining position because you can shop for a home with confidence,knowing that your financing will be there when you need it.

In the past, lenders typically required a 20% down payment on mortgage loans. A large down payment was required because it helped assure lenders that borrowers could make the monthly mortgage payments. With so much equity already invested in the home, buyers were more likely to make their payments. Today, many loans are made with as little as a 3%to 5% down payment.

With private mortgage insurance, lenders are more willing to make loans with less than 20% down. This is because the mortgage insurer acts as a guarantor and shares some of the lending risk with the lender. If the borrower defaults on the mortgage loan and the lender takes title tothe property, the mortgage insurance will reduce or eliminate loss to the lender.

Because private mortgage insurance can give you the option of putting less money down, you have much more flexibility in your home buying decision. By selecting a lower down payment loan, you can purchase a larger, more comfortable home today rather than in the future. Also, by putting less money down, you'll have more cash available for extra touches, like furnishings or landscaping.

Home Inspection

A home inspection is not the same as an appraisal. It's a professional evaluation of the structural and mechanical condition (not the market value) of the property.

If possible, you should plan to accompany the inspector. Every inspection should include an evaluation of at least the following:

• Foundations
• Doors and windows
• Roof
• Plumbing and electrical systems
• Heating and air conditioning systems
• Ceilings, walls, and floors
• Insulation
• Ventilation
• Septic tanks, wells, or sewer lines
• Common areas (in the case of a condominium or cooperative)

Other common contingencies include:

• Obtaining clear title to the property
• Selling an existing home within a specified period of time
• Requiring that the seller pay a portion of the buyer's closing costs
• Obtaining a satisfactory well and septic test
• Requiring the sellers to make certain repairs prior to closing
• Appraised value of no less than the offered price

When you submit your offer, you should be prepared to make a deposit (the amount may vary based on the area). This deposit is often referred to as "earnest money" and is given as a show of good faith on your part that you're sincere about your offer. If the sale goes through, the amount of earnest money you put down will be deducted from the amount you owe the seller at closing. If the seller rejects your offer, or the sale falls through because one of your contingencies is not satisfied,your earnest money should be returned.

Needed Documentation

The following checklist shows what is typically required of you when meeting with your Huntington mortgage specialist:

• Application Fee (cost of appraisal, credit report and initial processing).
• Legible sales contract signed by Buyers and Sellers.
• Social Security numbers of all applicants.
• Complete addresses for the past two years (including complete name and address of landlords for past 24 months).
• Name, address, and all income earned from all employers for past 24 months.
• Copies of previous two years' W-2 forms.
• Copy of most recent year-to-date pay stub.
• Name,address, account number, monthly payment and current balance for:installment loans, revolving charge accounts, student loans, mortgage loans and auto loans.
• Name, address, account number and balance of all deposit accounts, including: checkingaccounts, savings accounts, stocks, bonds, etc.
• Three months' most recent statements for deposit accounts, stocks, etc.
• Ifyou choose to include income from Child Support/Alimony bring copies ofcourt records or canceled checks showing receipt of payment.

If you are applying for a VA Loan:

• DD-214, Certificate of Eligibility or statement from your Commanding Officer if you are on active duty.

If you are self-employed or paid by commission:

• Previous two years' Federal Income Tax Returns with all schedules and a year-to-date profit and loss statement.

If you own other properties:

• Address of properties and current market value.

If any debt is owed on properties:

• Lender's name, address, account number, monthly payment and current balance.
• Copy of previous two years' Federal Income Tax Returns with all schedules.
• If rented; copy of lease.

If you have filed bankruptcy in the last seven years:

• Copy of petition and discharge, handwritten explanation of the reason forbankruptcy and evidence of excellent credit since the bankruptcy.