Home Loan Center

Welcome to the Northwoods Bank Home Loan Resource Center

Steps to Buying a Home

• Getting Started - Tips to help you enter the real estate market with confidence
• Calculating What You Need - How much cash do you need to buy a home & how to invest for the down payment
• Finding a Home - Helpful ideas to help you find the home of your dreams
• Making an Offer - Process of making an offer & negotiating a deal
• Finding a Loan - Learn about the loan option available & which ones fit your specific needs
• Final Steps - Learn about insurance, the closing process, & what to do after your loan closing.

Getting Started
Is now the right time to buy? Compare the costs of renting to owning a home — including mortgage payments, insurance, maintenance and taxes — with our Should I rent my home or buy calculator.

• Ready to Buy?
• About Your Down Payment

Your answers to these two questions will tell you.

1. Is this the right time to buy?
   In addition to putting down roots in a home of your own and saying "goodbye" to the landlord's restrictions, home ownership brings solid financial rewards. As a homeowner you can:
• Lower your taxes: Mortgage interest and property taxes are generally tax deductible. Consult your tax advisor.
• Start building wealth: A home is an appreciable investment that increases as your equity grows.
• Enjoy tax-deductible borrowing: As you build equity, you can borrow against it and, in most cases, deduct the interest from your taxes. Make sure to consult your tax advisor. This gives you access to money for college tuition, home improvements and other big-ticket expenses.

But you will have to make some adjustments. You'll have less disposable income and more responsibilities. Home repairs and upkeep will require time and financial commitments that you currently do not have. And your lifestyle will change. You might have to settle for a smaller "first house" and then trade up. And you probably won't have as much cash for dining out or weekend getaways. Now is the time to carefully weigh the pros and cons and use our Rent vs. Buy calculator to analyze the financial impact.

2. How Much Can I Afford?
   This is your starting point in the home buying process. It involves taking stock of your finances and seeing if you really have the funds to buy a home that is acceptable to you at this point in your life. Be sure to investigate ways to boost your borrowing power before deciding that you may not be ready. And check out Northwoods Bank's special programs for first time homebuyers, and people with little or no cash. You may be closer than you think. Home affordability is determined by:
• Monthly Pre-Tax Income: Money coming in from salary, investments and other sources such as commissions, social security, disability, etc.
• Outstanding Debt: Credit card, installment, and other monthly obligations
• Borrowing Power: The amount a mortgage lender (such as Northwoods Bank) is willing to lend you. This is the key component in determining your new home's affordability.
  
  Use our easy calculator to help you determine how much house can I afford?. Pre-qualification lets you know how much money Northwoods Bank will be willing to lend you if your loan application is approved.