Buying a home is one of life’s biggest milestones, and the home loan application process doesn’t have to be overwhelming. At Farmers Bank, we’re committed to helping you navigate every step with confidence and clarity. Whether you’re buying your first home or upgrading to your next, our mortgage guide will help you feel more prepared when applying for a loan.
Key Takeaways:
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Know what documents to gather before applying
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Understand how your credit score affects eligibility
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Learn what to expect during each phase of the process
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Farmers Bank offers local decision-making and personal service
1. Review Your Finances and Credit Score
Before starting a home loan application, review your current financial health. Lenders evaluate factors like income, employment history, debt-to-income ratio, and especially your credit score. A higher score generally means better loan terms.
Tip: Request a free credit report from one of the major credit bureaus (Equifax, Experian, or TransUnion) and review it for any errors.
2. Determine Your Budget
Use an online mortgage calculator or speak with a loan officer at Farmers Bank to determine what monthly payment fits your budget. Keep in mind that property taxes, insurance, and potential homeowner’s association (HOA) fees can affect your monthly costs.
3. Gather Required Documents
When you apply for a home loan, you'll need to provide documentation that verifies your financial information. Here are the most commonly requested items:
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Two years of W-2s / tax returns
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Recent pay stubs
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Bank statements for checking and savings accounts
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Identification (driver’s license or government-issued ID)
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Employment verification
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Documentation of assets or other sources of income
Having these ready can help speed up the approval process.
4. Get Pre-Approved
Pre-approval gives you a clear idea of how much you can afford and shows sellers you're a serious buyer. At Farmers Bank, our local loan specialists can often complete pre-approvals quickly and with personalized guidance. This step can help you shop confidently and avoid potential disappointments.
5. Choose the Right Loan Option
Farmers Bank offers a range of home loan options to match your financial goals:
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Fixed-Rate Mortgages: Consistent monthly payments over the life of the loan
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Adjustable-Rate Mortgages (ARMs): Lower initial rates that may change over time
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Low Down Payment Loans: Including FHA and VA loans for eligible buyers
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Bridge Loans: For purchasing a new home while selling your current one
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In-House Financing: Custom solutions for unique situations
Our team will help you compare options and select the best fit for your needs.
Explore Home Mortgage Loans at Farmers Bank
Our Home Mortgage Loans are designed with you in mind. Whether you're purchasing, refinancing, or building a home, we offer flexible solutions that keep your financial goals front and center. Benefits include:
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In-House Loan Servicing: We service your loan locally, so you'll always know who to call.
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Competitive Rates: Choose from fixed or adjustable-rate options tailored to your financial situation.
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Custom Financing Options: From conventional loans to USDA Rural Development loans, we’ll help you find the perfect fit.
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Construction & Lot Loans: Planning to build? Our short-term construction and lot loans can help you break ground with confidence.
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Bridge Loans: Avoid delays in buying your next home while selling your current one.
With trusted local decision-making and a dedicated lending team, we focus on making the mortgage process smooth, personal, and hassle-free.
6. Submit Your Application
Once you're pre-approved and have found the right home, it's time to complete your official mortgage application. This step includes:
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Submitting your documents
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Authorizing a credit check
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Locking in your interest rate (optional)
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Reviewing loan disclosures and terms
7. Underwriting and Approval
During underwriting, your loan file is reviewed for final approval. You may be asked to clarify or submit additional documents. Farmers Bank handles underwriting locally, which means faster response times and fewer delays.
8. Closing on Your New Home
Once approved, you’ll receive a closing disclosure outlining final costs. At closing, you’ll sign the loan documents, pay any final fees, and receive the keys to your new home.
Ready to Get Started?
Applying for a home loan doesn’t have to be stressful. With local decision-making, fast turnaround times, and friendly experts, Farmers Bank is your trusted mortgage partner from start to finish. Contact Farmers Bank today to get started on your home loan application.
FAQs
What credit score do I need to apply for a home loan?
Most lenders prefer a score of 620 or higher, but options may be available for lower scores. Farmers Bank can help review your credit situation.
How long does it take to close on a home loan?
With all documents submitted, Farmers Bank can often close loans in as little as 30 days.
Can I apply if I’m self-employed?
Yes. You may need to provide additional documentation such as business tax returns or profit/loss statements.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a general estimate, while pre-approval is a more formal process that includes credit checks and document review.
Is a down payment always required?
Not always. Some loan programs offer low or no down payment options for qualified borrowers.