First Time Home Buyers
Mortgages 101: Brush up and be ready to buy
You did it – you budgeted, you researched, you planned. Now you’re here, and we’re here to guide you through these next crucial steps. We know it seems there’s always more to do, but we’ve made it manageable for you. Take a look at resources we’ve assembled below to see how they can help you.
Mortgage application and closing FAQs
Can I prequalify for a loan before I find a house to purchase?
You can give this letter to your real estate broker to assure them that you are a serious buyer. When you find the perfect home, simply call your Residential Lending Officer at Kennebunk Savings to start the mortgage application process.
When I’m ready to apply, what is my role in the mortgage process?
As part of the application process, in addition to filling out the application form, it is important to provide all the requested documentation needed, like income verification and bank statement documents. To help you prepare, check out our handy Mortgage Application Checklist.
There are steps you can take to help speed up the loan process.
Be available because the loan processors and underwriters will have questions. Your quick response to their inquiries will keep the process moving forward.
Provide all information requested right up front. Your lender will provide a list of items needed to process your mortgage application and if you omit important information or are not accurate with the information you provide, it could slow down the process.
And finally, do not hesitate to reach out to a member of your lending team when you have questions. It is important to provide the right type of information when needed, instead of leaving out details for not being sure of their importance. Not having all the information can slow down the process.
Can I borrow funds to use towards my down payment?
I’m self-employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. We’ll review and average the net income from self-employment that’s reported on your tax returns to determine the income that can be used to qualify for a loan.
As always, if you have additional questions about qualifying for a mortgage loan, do not hesitate to give us a call.
I’m getting a gift of funds from someone else. Is this an acceptable source of my down payment?
Yes, down payments can include gift money if the gift giver is related to you or your co-borrower. We’ll ask you for the name, address, and phone number of the gift giver, as well as the donor’s relationship to you.
Prior to closing, we’ll verify that the gift funds have been transferred to you by obtaining a copy of your bank deposit receipt or statement to verify that you have deposited the gift funds into your account.
Why do you need information about properties I own if I am not financing them?
We need information about all the real estate you own to insure we understand any payment obligations you have on the properties and to have a reasonable estimate of your net worth. If you don’t know the exact value of your real estate holdings, provide your best guess – in most cases that is all we will need to process your new mortgage request.
Will I need to have an attorney represent me at my mortgage closing?
In some areas of the country it is customary, and sometimes required by law, to have an attorney represent you at the closing. In Maine, the borrowers have the right to choose their own attorney and pay for that attorney and settlement agent’s fee. In New Hampshire, they do not have the right to choose.
Please contact the closing agent if you have questions about the attorney representation process. If your attorney has any questions about your new mortgage, please refer them to your Residential Lending Officer.
Who will be at the closing?
If I apply, where will the closing take place?
Get Personal Financial Counseling from our Partner, GreenPath
- Credit Counseling
- Debt Counseling
- Debt Management
- Student Loan Counseling
- Homebuyer’s Assistance
- Credit Report Review
- Great if you have minimal savings.
- Low 3%-5% down payment options.
- Low interest rate.
- Income limits apply.
- 2% down no PMI
- No private mortgage insurance (PMI) required
- Property must be located in York County, Maine or Strafford, and Rockingham Counties, NH