Page 6 Fall Home Improvement 2025 Lincoln Daily News stubs, and two months of bank statements), and you’ll typically need to submit an application.” According to Harnacke, the bank will also secure a credit report on the person looking to get the loan. Once all this is done, and if the borrower is indeed pre-qualified, a letter will be sent to them so that they can prove to the realtor that they can quickly acquire a mortgage if they decide to make an offer on a property. Once an offer is accepted by the seller, the bank will need a copy of the purchase contract, followed by an appraisal of the property. Harnacke was additionally asked about recommended downpayment amounts, as well as minimum credit scores. “We recommend a minimum of 10% down payment,” Harnacke wrote. He explained that doing this provides a “cushion” should you need to sell your home for any reason. Harnacke also wrote that this can help prevent you from being “‘underwater’ on the loan if the housing market declines.” At The First National Bank of Tremont, Harnacke shared that they do not require private mortgage insurance but shared that many lenders do. This, he informed, is something you may be required to pay for if you cannot put a down payment of at least 20 percent. As for the credit score, he stated getting a standard mortgage will typically require a credit score of 620. Next, Harnacke was asked about advice he would provide to families, couples, or individuals looking to start saving for a home. “It is critical for those who are thinking about purchasing a home to develop and stick to a budget,” Harnacke wrote. “You’ll want to ensure you are able to pay for principal and interest on the mortgage, as well as homeowners’ insurance and property taxes.” In addition to that, Harnacke had a bit more advice. He advised people to make sure they had some amount left over for home repairs. He also recommended using a local lender that you trust. On top of that, he also advised people to ask about closing costs. According to Harnacke, these costs “can vary pretty significantly depending on if your bank is keeping your mortgage loan in house or if your mortgage will be sold on the secondary market.” All of this may seem pretty scary, as it is a lot of information. Depending on your personal financial situation it may seem impossible as not all families or individuals have money to put away for a home. The final question LDN asked Harnacke about was financial assistance programs aimed to assist low-income families or individuals to purchase a home. Harnacke started his answer by admitting that inflation, as of late, has made it hard on people looking to buy a home, but that there are programs that people can apply for. The one he went into detail about was the one that is most utilized by his bank. This is the Downpayment Plus Continue --
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