Homebuying Guide

8 Steps to Buying a Home

Well done on your decision to purchase a home! Prior to commencing the loan procedure, conducting thorough research is crucial. There are multiple necessary steps to ensure a seamless and prosperous experience. Begin by obtaining pre-qualification, which involves conveniently completing the online pre-qualification form. Following that, a licensed loan officer will reach out to you within 24 hours.

When buying a home, most people turn to residential mortgages to finance their purchase. This guide, brought to you by Allied First Bank of the Carolinas, will help you navigate the mortgage process, from understanding loan types to securing the best interest rates. Our experienced team is here to assist you with all your mortgage needs.

1.  Determine your budget:

Assess your finances: Calculate your monthly income, expenses, and savings to estimate how much you can afford to spend on a mortgage. • Utilize mortgage calculators: Our website provides online tools to help estimate your monthly payments based on the home price, down payment, interest rate, and loan term. • Consider additional costs: Our knowledgeable staff can help you factor in property taxes, homeowners’ insurance, and maintenance expenses when determining your budget.

2.  Check your credit score:

Request your credit report: We can pull a free credit report for you to determine where your scores currently stand. Many customers mistakenly use Credit Karma or other online sites to pull their credit and those scores are often incorrect.

Our mortgage consultants are experts in understanding your credit and we can offer personalized advice on paying down debt, making timely payments, and avoiding new lines of credit before applying for a mortgage.  

3.  Dispute any errors:

If you find inaccuracies in your report, contact the credit bureau to resolve them, and our team can guide you through the process. We also offer a service where we will place you in a Credit Repair program (FOR FREE!) that helps you raise your credit score without you having to pay a dime. We do this for our customers as a courtesy because we know how valuable a higher credit score is and how much money you can save by doing this. If you’re concerned about your credit you want to contact us as soon as you start thinking about buying or refinancing your home. Credit repair isn’t magic and takes time, but we have experts to work with you so that your score increases as much as possible, as fast as possible.

4.  Understand loan types with Allied First Bank:

Fixed-rate mortgage: These are the most common and are perfect for the borrower that does not like risk. As we’ve seen these past couple of years, rates can change quickly and locking in a low fixed-rate loan is a great way to make sure you never have a surprise.

Adjustable-rate mortgage (ARM): Our ARM options feature an interest rate that can change after an initial fixed period. We have some very aggressive options in this area as well and with rates currently higher this is a great option if you have more money for a down payment and are looking to refinance when/if rates are lowered.

Government-backed loans: Our FHA, VA, and USDA loan programs provide more lenient qualifying criteria and lower down payment requirements. We have a few government programs that are eligible for no credit or low credit scores. Because these loans are partially guaranteed by the government, lenders are often willing to be more aggressive with these programs.

5.  Gather necessary documentation:

 Proof of income: W-2 forms, your last two pay stubs, and tax returns from the past two years.

Employment verification: Contact information for your employer to verify your job status and income.

• Credit history: Our lenders may request additional information to assess your creditworthiness.

• Asset documentation: Bank statements from the previous 2 months showing the funds you intend to use as a downpayment.  You can also use investment account statements, and retirement account balances to demonstrate your financial stability.

6.  Reach out to Allied First Bank of the Carolinas

Contact us either by phone, email or fill out our pre-qualification form.  We're happy to work with you on your terms so whether you want to text, email or talk we're happy to help.

7.  Let us help you get pre-qualified:

Submit a pre-qualification application: We will review your situation with you to make sure you qualify.

Strengthen your offer: A pre-qualification letter from us demonstrates to sellers that you are a serious and qualified buyer.

• Expedite the mortgage process: Being preapproved with Allied First Bank can help shorten the time between making an offer and closing on the home.  In many cases, we can have your file pre-underwritten so when you're ready to buy we're already well into the process for your mortgage.

8.  Finalize the mortgage process with us:

By choosing Allied First Bank of the Carolinas as your lender, you are choosing to make your mortgage process as simple as possible.  We work hard to remove the headaches and hassle that can sometimes come with obtaining a new mortgage.  We value our clients and work to make sure they are informed and stress-free during the process.  We want to be your mortgage lender for life!

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