More Information for Homebuyers
ELIGIBILITY
1. Live or work in Anne Arundel County/City of Annapolis for at least 6 months (at date of application).
2. Have not owned a home in the last 3 years.
3. Qualify for a first mortgage loan. (NOTE: You must provide a loan pre-approval letter as part of the application process. See below to learn more about the loan pre-approval requirements and becoming mortgage ready. Click the pop-out tab on the right to view ACDS Associate Lender information.)
4. Have adequate funds for down payment and closing costs.
5. Occupy the home as a primary residence.
6. Attend a mandatory MPDU Homebuyer Orientation Session. Click here to register. (NOTE: You only need to take one of the three available classes. Please note that this course is separate from the ACDS Homeownership Counseling program.)
Households must not exceed 100% Area Median Household Income, adjusted for household size:
See the Policies and FAQ page for additional details.
LOAN PRE-APPROVAL PROCESS
The application process requires an applicant to obtain a loan pre-approval letter before joining the wait list.
- Mortgage can be obtained from an ACDS Associate Lender (click the pop-out tab on the right to view) or a qualified private lender (sometimes the homebuilder will have an affiliated lender).
- The loan pre-approval letter must be submitted into the MPDU Application Portal within 60 days of issuance.
- Must include a minimum loan amount that matches the MPDU house price for the house size you are looking to buy.
- Must include estimated interest rate and terms.
- Must include the date of issuance.
- Pre-approval Letters should be based on MPDU applicant’s income, credit score, debt to income ratio, and assume a full housing payment of principal, interest, estimated taxes, insurance, HOA fees and mortgage insurance premium, if applicable.
COMMON STEPS FOR OBTAINING A MORTGAGE PRE-APPROVAL AND APPROVAL
- Check your finances and credit – Review your credit score as lenders look at credit history to decide if you qualify. Assess your savings to figure out how much money you have available for a down payment and closing costs.
- Gather your documents – Provide proof of identity such as a driver’s license or passport. Collect recent paystubs from the past 30 to 60 days, plus W-2 forms or 1099s from the last two years for income verification. Bring personal and business tax returns. Gather bank statements and investment account records from the past two to three months.
- Choose a lender and apply – Compare lenders to find the best rates and fees; consider an ACDS Associate lender or any other qualified bank you prefer. Fill out the online or phone application with your chosen lender and upload the appropriate paperwork. The lender will perform a hard credit check.