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What Does it Take to Get a Home Loan Now?

Posted December 19, 2012 in Advice Column, Winterset

Over the last few years, we have continuously heard from the media that banks are just unwilling to lend money, getting real estate loans are impossible, the process has gotten tougher, you have to have so much down payment to purchase a home and even more down if you want to start a business.

Well, let me set the record straight. Most banks are very interested in loaning money. There is nothing we would rather do more than help you buy a home, start a new business or expand your existing business.

The process of applying for a loan has definitely changed from a few years ago. However, with an experienced and knowledgeable lending team, it is still very possible to obtain a loan. Let me put some other rumors to rest.

It is still possible to get 100 percent financing to purchase a home. We are lucky here in Madison County to have programs available for first-time home buyers and others that allow for 100 percent financing. We just closed three such loans this week.

Yes, the process has changed, and of course not everyone will qualify. Our bank wants to lend money, whether to purchase a home, start a business, or purchase a piece of farm ground. We work with organizations like the USDA Rural Development, FSA (Farm Service Agency) and SBA (Small Business Administration) to provide financing whenever and wherever we can.

If you have been paying rent and procrastinating about buying a home because of these rumors, or because you think there is no way you’ll meet the requirements, speak to a banker today. I am more than happy to sit down and help see what you’ll qualify for. If not today, make some plans for tomorrow. It is never too early to start planning for the future.  Usually the only information that is needed is two years of tax returns with W-2, most recent pay stubs and bank statements. This information is used to identify your financial needs and how much you can afford for a new home.

Interest rates are the lowest they have ever been, making now the best time to look at buying a home or start the planning process.

Information provided by Kendall S. Kerns, senior vice president American State Bank, 113 S. John Wayne Drive, 462-5090.

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