How to get a mortgage loan
Setting out to purchase a home or refinance a current residential loan can often be quite intimidating, particularly when many different lending options are available. In addition, all the requirements to provide documentation, such as pay stubs, tax records and so on, can seem overwhelming.
Owning a home is typically one of the most significant financial commitments a consumer can make, so it’s important to get everything right the first time. That’s why it makes sense to deal with a lender like Nevada State Bank, which has been funding home loans for more than 50 years in the Nevada market.
Step 1: Evaluate your situation
The first step in the process is a thorough evaluation of your current financial situation. Having a clear picture of your credit standing and current financial obligations can help you decide what a “comfortable” mortgage payment or range of payments might be. Additionally, you may need to consider what resources are available for a down payment.
If you are interested in refinancing your current mortgage, it’s important to analyze your reasons: lowering your monthly payments, taking cash out for a home improvement project, etc.
We at Nevada State Bank can help with these questions and help you understand the mortgage process.
Step 2: Fill out a mortgage loan application
In order for us to provide accurate answers, you will typically need to complete a mortgage application, either online here or with the help of the Nevada State Bank mortgage team.
Step 3: Get prequalified
Once the mortgage application is in place and you are working with our licensed mortgage team representative, you can be prequalified for a residential mortgage and begin looking for a property. Prequalifying can give both you and the bank an idea of how much you can afford to spend on a property. A real estate agent will typically ask for a letter of prequalification from a lender before showing you properties. If you have already identified a property and signed a sales contract, the actual detailed portion of the process can begin. If a refinance is your objective, then the process is off to a great start.
Step 4: The mortgage process
Your personal credit will first be examined, and the amount of the desired mortgage loan will be estimated. A Good Faith Estimate (GFE) of mortgage costs will be provided once a property has been identified. If you are seeking a refinance mortgage, the GFE will be provided within three business days. Once you have reviewed and accepted the GFE, the process will continue.
Personal and financial information will be requested, such as pay stubs, bank statements, tax returns, investment or retirement accounts, and so on. Often, it may seem like information about your entire financial life is being examined. You may think, “It wasn’t like this in the old days.” That is true, but economic times have changed, as have many of the rules for loan approval.
During the mortgage process, the bank will order an appraisal to formally assess the value of the property. Concurrently, Nevada State Bank’s mortgage division will be working with the title and escrow company to get your loan closed in a timely fashion.
Once the appraisal is complete and the processing of the loan is also completed, the loan package is submitted to underwriting for approval. After final approval is received, the closing process can begin.
The final stage is going to the title or escrow company to sign the mortgage loan and title documents. Once everything is signed, the mortgage loan can “funded” and recorded. Ownership or refinancing is complete, and you can sit back and relax in your new home or refinanced property.