Are you looking to buy a home with Community? Here are some frequently asked questions for first time home buyers.
What information do I need to supply to apply for a loan?
- Contract of sale/purchase
- Present mortgage information (if looking to refinance)
- Previous two years of W-2s/ tax returns
- Current monthly paycheck stubs
- Evidence of any additional income
- Previous two months of bank statements
- All account numbers, addresses, and balances of creditors
- Copy of homeowners insurance and real estate tax bills
Are there any programs that support first-time homebuyers?
The Federal Home Loan Bank of Chicago offers a Down Payment Plus (DPP) Program for first time homebuyers. This program offers a $10,000 grant towards the down payment of a home purchase. See if you are eligible for the program by visiting the FHLB Chicago website.
Are there any other ways I can lower my borrowing costs?
You can lower your mortgage interest rate by signing up for Community’s Pay-O-Matic program. This program automatically deducts your monthly mortgage payment from a designated Community checking or savings account.
What can I afford?
The size of your mortgage will be determined by your down payment, credit history, and income.
How big of a down payment will I have to make?
- 20 percent: If you do not want to carry private mortgage insurance (PMI), you will need to make a 20 percent down payment towards your home purchase.
- 10 percent: Home buyers may make a 10 percent down payment if they carry private mortgage insurance (PMI).
- 5 percent: Some homebuyers will be eligible for a 5 percent down payment with Community’s Home Ownership Program (CHOP). This program comes with certain income, county, and additional restrictions.