Process of Buying a Home

Whether your dream is to own a home in the country, or a condominium downtown, the process of getting a mortgage is the same. For many, buying a home is one of the biggest decisions they will ever make. The process of buying a home can be complicated, even for those who have done it before, so having someone to talk to can make the process more enjoyable. Tower Community Bank has experts that want to help you.

Step 1 – Review your financial picture to determine your buying power
- Review your credit bureau and clean up any past issues and make sure there are no inaccuracies or mistakes.
- Figure your debt to income ratio by dividing the total of everything you owe monthly by the total of your monthly income.
- Determine what you can comfortably afford. Keep in mind that there may be upfront costs of a down payment and closing costs.
- Gather your financial records such as pay stubs, W2s, bank statements, etc.
- Use the mortgage calculator to get an estimate of what you could borrow
Step 2 – Get Prequalified
- Tower Community Bank would like to partner with you through the mortgage process. We can help you determine what you qualify for based on your financial picture.
- When we review the mortgage application we will look at your time at current residence, time at current employer, your liabilities and your assets.
- We will need the following from all borrowers on the loan to get the process started:
  - Copy of driver’s license
  - Most recent two years’ W2s, K1s, 1099s, etc.
  - Most recent two years’ full federal income tax returns (all pages and schedules)
  - Most recent 30 days’ pay stubs (if applicable)
  - Most recent two months bank statement (checking, savings, money market and retirement)
  - Contact information for homeowner’s insurance agent
- Step 3 – Shop for the home of your dreams
  - Once you’ve been prequalified you can shop with confidence for a home that not only fulfills you dream but also remains within your budget.
  - When you’ve found your new home, we’ll continue the process with an appraisal, inspection, title search etc.
- Step 4 – Close on your home
  - Review the list of fees and terms and conditions of the contract
  - Get cashier’s check for the amount to bring to closing
  - Review all documents before signing and ask any questions you may have
- Step 5 – Celebrate
  - All of the paperwork is now signed. Congratulations, you are now a homeowner!
  - You’ll receive a copy of the loan and the title company documents you signed
  - You’ll also receive the keys to your new home