With mortgage interest rates at their lowest levels since World War II, a plentiful housing stock and prices still low, buying a home may now be easier for many Americans than it has been in years.
“Buying a home is the single largest investment that most people will make in their lifetime,” said LNB Mortgage Originator Joe Arbogast. “So it’s important to take an honest look at your budget first to see what you can afford.”
LNB recommends that potential buyers consider several important factors before deciding to buy a home:
Review your finances. An honest analysis of your financial situation is central to the decision to buy. Calculate all your monthly expenses in addition to your potential mortgage payment, including homeowner’s insurance, taxes, condo fees and other obligations like car payments, credit card debt, and living expenses, including utilities and groceries. Consumers should anticipate and save for home maintenance costs as well.
Check your credit score. Your credit history is another important factor when applying for a loan. Most lenders rely on the Fair Isaac Corporation (FICO) credit score or the Vantage Score when determining your qualifications for a loan. The score reflects how well you manage your debt and is calculated using data from your credit report. A low credit score will result in a higher interest rate on your loan. If your score is too low, you may not be approved for a loan at all. There are a number of things you can do to improve your credit score, including paying your bills on time, only opening lines of credit you need and keeping your credit card balances below half of your available credit.
Factor in closing costs. Once you’ve found a home and agreed on a purchase price, there will be costs associated with closing the sale. These costs can vary widely and will depend on the purchase price of the home and whether a real estate attorney or title/escrow company will be involved in the transaction. By law, lenders are required to give you a written estimate of closing costs within three days of accepting your loan application.
LNB hit a new milestone—reporting $503.3 million in total assets. In addition, earnings for the first nine months of
2010 exceeded those reported during the same time period in 2009 by 14%. This growth is testament to the outstanding customer service provided by LNB’s dedicated employees. According to President and CEO, Robert Schick, LNB’s customers are also to thank for this tremendous achievement. “We could not have achieved this record level of assets without the trust and confidence our customers have placed in LNB,” stated Schick. LNB has a long-standing tradition of excellence, dating back to 1852. As its mission, LNB safely and profitably serves all of its customers and communities with unmatched professional service. LNB offers an extensive variety of products within the personal and business banking realms, including direct deposit, online banking, Cash Manager, Remote Deposit Capture and much more. LNB also provides financial services, including investments and insurance. LNB is an independent, community bank with eleven branch offices located throughout Wayne, Onondaga, Ontario, Seneca and Yates Counties. For a complete listing of products and services, as well as branch locations, please visit bankwithLNB.com.
