Maine Home Buying FAQs

To become a first-time homebuyer in Southern Maine area, you need to know how and where to begin the homebuying process. The following questions and answers have been thoughtfully selected to give you a basic knowledge of the process.

Question: Should I buy or rent?

Answer:

A home is an investment. While renting is generally free of most maintenance headaches and responsibilities, you also lose the chance to build equity, State of Maine tax benefits, and protect yourself against increases in your monthly rent.

Owning a home in Southern Maine has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

Question: How do I find a lender?

Answer:

You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders.
Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices.  Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford.

Talk with several lenders before you decide. Your Real Estate Agent will be familiar with lenders in the area and what they’re offering. Or take a look in the Portland Press Herald - the real estate section list interest rates being offered by Southern Maine lenders. You can also find FHA approved lenders in the Yellow Pages of your phone book.

Question: In addition to the mortgage payment, what other costs do I need to consider?

Answer:

Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your Real Estate Agent will be able to help you get information from the seller on how much utilities normally cost.
In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your Real Estate Agent will be able to help you anticipate these costs.

Question: What do I need to take with me when I apply for a mortgage?

Answer:

If you have everything with you when you visit your lender, you’ll save a good deal of time. Plan on having the following ready:
1. Social Security numbers for both your and your spouse, if both of you are applying for the loan;

2. Copies of your checking and savings account statements for the
past 6 months

3. Evidence of any other assets; like bonds or stocks

4. A recent paycheck stub listing your earnings

5. A list of all credit card accounts and the average monthly amounts owed on each

6. A list of account numbers and balances due on outstanding loans, such as car loans or personal loans

7. Copies of your last 2 years’ income tax statements

8. The name and address of someone who can verify your employment.

 

Note: Depending on your lender, you may be asked for additional information.