Guide to Mortgage Pre-Approval: Your Key to Homebuying Success

Home Blog Guide to Mortgage Pre-Approval: Your Key to Homebuying Success

Posted On: March 8, 2024 by Peoples Bank of Kankakee County in: Budget Home Mortgages Personal Finances Saving

Embarking on the journey to homeownership is an exciting milestone, but navigating the mortgage process can feel overwhelming without proper guidance. At Peoples Bank, we understand the importance of making informed decisions when it comes to purchasing a home. That's why we're here to simplify the mortgage pre-approval process and equip you with the knowledge and tools you need to achieve your homeownership goals.

What is Mortgage Pre-Approval?

Mortgage pre-approval is a crucial step in the homebuying process that provides you with a clear understanding of how much you can afford to spend on a home. It involves a comprehensive assessment of your financial health, including your income, assets, debts, and credit history. With a pre-approval letter in hand, you'll have the confidence and credibility to make competitive offers on the home of your dreams.

Benefits of Mortgage Pre-Approval

Know Your Budget: With mortgage pre-approval, you'll gain clarity on your home buying budget, allowing you to focus your search on properties that align with your financial capabilities.
Gain a Competitive Edge: In a competitive real estate market, having a pre-approval letter can give you a competitive edge over other buyers. Sellers are more likely to consider offers from pre-approved buyers, as they demonstrate a higher level of commitment and financial readiness.
Speed Up the Closing Process: Pre-approval streamlines the mortgage application process, reducing the time it takes to secure financing for your home purchase. This can be particularly advantageous in a fast-moving market where timing is crucial.
Negotiating Power: Armed with a pre-approval letter, you'll have greater negotiating power when it comes to price and terms. Sellers may be more inclined to negotiate on price or offer concessions knowing that you're a serious and qualified buyer.

How to Get Pre-Approved

Gather Financial Documents: Be prepared to provide documentation of your income, assets, debts, and employment history.
Complete a Mortgage Application: Submit a mortgage application to begin the pre-approval process.
Undergo a Credit Check: Your credit history will be reviewed as part of the pre-approval process to assess your creditworthiness.
Receive Your Pre-Approval Letter: Once your application has been reviewed and approved, you'll receive a pre-approval letter outlining the amount you're qualified to borrow.

At Peoples Bank, we're committed to helping you achieve your homeownership dreams. Our experienced mortgage team is here to guide you through the pre-approval process and beyond, providing personalized support and expert advice every step of the way.

With mortgage pre-approval from Peoples Bank, you'll be one step closer to finding your perfect home and securing the financing you need to make it a reality.

Peoples Bank of Kankakee County. Member FDIC.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.