Philip Fague, EVP,
Mortgage & Consumer Business
Shippensburg, PA (11/5/2010) — 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
Philip Fague, Executive Vice President, Mortgage & Consumer
Business. “So it’s important to take an honest look at your budget first
to see what you can afford.”
Orrstown Bank 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 VantageScore 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.
Visit our website at
www.orrstown.com or call toll free 1.888.ORRSTOWN to find an Orrstown
Bank mortgage professional near you! Orrstown Bank, equal housing
lender, Member FDIC.
With over $1.4 billion in
assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown
Bank, provide a full range of consumer and business financial services
through twenty banking offices and two remote service facilities located
in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington
County, Maryland. Orrstown Financial Services, Inc.’s stock is traded
on the NASDAQ Capital Market under the symbol ORRF.