Congratulations on getting to that point in life where the dream of homeownership looks more like reality. Purchasing a home is truly a difference-maker. It’s both a significant financial investment, and emotional one too. Since the mortgage process can be a bit complicated, it’s important you know what’s going on every step of the way. Here are some tips to ensure the buying of your home feels as good as finding it.

Tip 1: Find Out How Much You Can Afford

Before you even begin your search, find out what you can afford by getting prequalified with a loan officer. They should verify your income, do a credit check, and even look at bank statements to get a more accurate assessment of the loan amount you’d qualify for, taking into consideration your assets and down payment. That due diligence pays off big time, ensuring a smoother process through the underwriting team who will complete the loan preapproval.

Debt-to-income ratio

Your loan officer will come up with a projected loan amount by calculating your debt-to-income (DTI) ratio, factoring in your gross monthly income (before taxes and other deductions), and subtracting the minimum payments to your credit as reported in your credit report. The DTI is usually capped at about 42% to 45% of your income. From that number, you’ll fit in your new mortgage payment, which will include principle, interest, property taxes, homeowners’ insurance, and private mortgage insurance, if needed.

Keep in mind, there are many daily living expenses not factored into the equation, such as utilities, auto insurance, groceries, cell phone bills, gym membership, clothing, and home maintenance.

“A lot of times if you educate the borrower on that, and show them how it works, they can play around with their own debt-to-income and make sure that there’s affordability there,” said Justin Calheno, Assistant Vice President of Retail Lending for Country Bank. “You have to make a decision as a consumer and make sure that those numbers are affordable.”

Calheno has extensive experience walking customers through the mortgage process—and getting them to closing quickly. Another piece of advice he offers: If you’re shopping for a mortgage, don’t worry about inquiries to your credit report. Pulling your credit will not hurt your score. He thinks that’s probably one of the biggest myths borrowers have.

Tip 2: How to Prepare for the Home Loan Application Process

Once you’re prequalified, you’ll get a letter that’s good for 90 days. Now it’s time to get a real estate agent and shop for your home. Once you find a home and get an accepted offer signed by all parties involved, your loan officer will start the mortgage application. Be sure to hand over all the forms they ask of you—and quickly. Once all the documents are in and appraisal completed, your loan moves to underwriting for final approval, and then to the attorney for closing.

The more organized you are, the faster you’ll move to closing. It’s easier than ever, thanks to the convenience of online applications and electronic signatures. At Country Bank, application approvals are taking about 13 days.

“There is a direct correlation between an approval in two weeks with a borrower who provides the checklist in a day,” Calheno said. “If your file is complete and ready and can be underwritten in an hour, underwriting will grab it and issue your approval. Because it’s a full file, you’re organized, and you have provided everything in a timely manner. They want to get loans through the pipeline. If you can provide all your information in a timely manner, we will get you closed and it’s going to be a much easier process.”

Tip 3: A Quick Guide to Understanding the Various Types of Mortgage Loans

The home you choose says a lot about you. Same with your mortgage. While most mortgages are basic conventional loans, requiring about 5% down, there are other options available based on your specific needs and goals.

If you’re building a home, you’ll likely find your financing fit with a construction-to-permanent loan, which offers many cost-savings. For instance, Country Bank lets customers lock in their rate at the start of the application process and have only one closing. The bank offers up to 90% financing with PMI approval, as well as the option for borrowers to self-contract their own construction at 70% of the total acquisition price. And if you just want to buy some land and hang onto it for a while before building, there’s a land loan.

“Some people aren’t ready to build yet, but that piece of land’s out there and they want to grab it before it gets off the market,” said Jason Mourao, Retail Loan Officer with Country Bank. “They’re able to do that with the land loan. Then, when they go to build and get the construction loan, that land loan will roll into the construction loan itself.”

There are specific loans for borrowers wanting to invest in property, people who have moderate incomes and need down payment assistance, first-time homebuyers, and those who simply want affordable housing in Massachusetts. Whatever your need, you’ll likely find the financing to support you, especially if you partner with a loan officer who takes the time to understand you and go through all your options with you.

Tip 4: How to improve your credit score?

Your credit score is a number that reflects your creditworthiness. Borrowers with strong credit scores (higher the better) are usually offered the lowest interest rates, while those with low scores are offered the most expensive rates. Improving your number means more money in your pocket, literally.

A good rule of thumb: Maintain open lines of credit, make your payments on time, and don’t max out on your debt.

“I always recommend people to get a small credit card or to rotate them every single month, use them for small things like grocery bills or gas or anything like that and just pay it off at the end of the month,” Mourao said. And don’t max out all your cards. “I’ve had borrowers that have never missed a payment, but they’re maxed out on their debt, maxed out on their credit cards. I’ve seen those credit scores lower than a borrower who has missed payments but is not maxed out.”

You can get a free credit report once per year from each of the three major credit bureaus. This is a great way to monitor your credit, spot inaccuracies, detect identity theft early, and qualify for competitive financing terms on your home loan.

Tip 5: How much of a down payment is needed to buy a home?

Your down payment will be determined by the type of loan you choose. First-time homebuyers, for instance, may qualify for just 3% down, land loans 20% down, construction loans 10% down. If you’re purchasing a home in eligible rural areas, you can obtain 100% financing, which means $0 down payment.

It’s important you find a loan officer who wants to learn about your needs, asks questions, finds the right answers for you, and, ultimately, wants you to prosper—not just at the closing, but throughout the life of your mortgage.

Country Bank is an Equal Housing Lender.

Country Bank is opening a new Banking Center at 638 Chandler Street, Worcester, in the former Bank of America building. The center will open for business on Monday, July 18, 2022, followed by a week-long celebration that will feature a drawing for a Worcester Red Sox VIP Suite for up to 20 guests (no purchase necessary).

Country Bank continues to look for opportunities to support the Worcester Community, ensuring it reinvests in the communities it serves. The Banking Center offers a Universal Banker approach, which allows all Banking Center Specialists to assist customers with all of their banking needs. The bank continues to focus its efforts to help make a difference in the Worcester Community, having donated a total of $209,675.00 and 183 volunteer hours to various non-profits in Worcester over the last six months.

As a founding partner of the Worcester Red Sox, the community bank has supported local non­ profits in the region through a combined charitable giving campaign with the WooStar Program. They also offer a Most Valuable Teacher (MVT) Program that recognizes the outstanding work teachers do every day to educate and support students.

In addition, both organizations are working together to bring back a long-standing baseball game between the Worcester Police and Fire Departments. The game is scheduled for Monday, September 26, 2022 at Polar Park. Tickets will go on sale soon and proceeds will benefit both Police and Fire’s chosen organizations.

Country Bank also welcomes Kimberly Eaton to the team as the Retail Banking Officer of this location. Kimberly resides in Brookfield with her family and earned her Bachelor’s Degree in Psychology from Worcester State University. She has worked in the financial services industry for 10 years and is experienced in business development in the greater Worcester market. Eaton and her team look forward to providing customers excellence in service and best-in-class solutions and becoming a part of the local community. She has been getting to know the local business community over the past month while purchasing gift cards to distribute as prizes during the grand opening week. “I am excited to develop relationships with the people and businesses in the Tatnuck Square area,” Eaton said. “My goal is to continue to build on the already great reputation that Country Bank has and to help our customers achieve their financial dreams and goals.”

The week-long celebration includes food, giveaways, a prize wheel, and drawings, with a ribbon­ cutting ceremony scheduled for 12 PM on Friday, July 22, 2022. In addition, the bank’s mascot Buck and his pal Smiley Ball from the Worcester Red Sox will be posing for photos. A Grand Prize drawing will be held for a Worcester Red Sox VIP Suite for up to 20 guests (no purchase necessary).

“When this location became available, we knew it was a great fit to expand our presence in the city,” stated Paul Scully, President, and CEO of Country Bank. “As a community partner, we care deeply about the sustainability of our communities and the people who live in them. This location will be our third in Worcester and we have a dedicated team of consumer and commercial bankers who work closely with our customers to help them navigate the ever-changing financial landscape. We will be here to help you evolve as you strive to reach your financial goals. We really are excited to be a part of this great city and are looking forward to getting to know the people who reside, operate businesses, and work in this area.”

Country Bank is ready to make a difference in the Tatnuck Square neighborhood. They invite you to stop in to see why they think the right bank makes all the difference.