Whether you are a first-time buyer, or looking to upgrade, buying a home is an exciting time. But, before you download all those home buying apps and start imagining yourself in each beautiful home you see, read these tips to streamline your mortgage process.
- Choose A Reliable Mortgage Lender
There are so many options when you are looking for a mortgage loan, from big banks and finance companies, to local banks and credit union. There are several advantages to choosing to finance with a credit union over your other options.
- You can save money. Credit Unions will typically offer the lowest rates, which can save you a ton of money over the life of your loan. They may also offer lower closing costs than you would find at a big bank.
- Face-to-face service. Since credit unions are local, you will get the benefit of being able to work in person with your mortgage lender. It also allows you the option to go into any branch to submit needed paperwork, or address any issues with the application. Although, if you prefer to handle the majority of the paperwork online, that service is also available through credit unions.
- Your loan is less likely to get sold. This means you will very likely be dealing with the same servicer for the life of the loan. Credit Union mortgages are usually done in house, meaning they will keep the loan for ongoing interest income. It is common for larger banks to package loans and sell servicing.
- Get Your Documents in Order
When you apply for a mortgage, you will need a lot of documents. Speed up the process by having these common items handy:
- Recent Paystubs
- Two years tax returns
- Recent Bank statements
You will also want to let your lender know if you will be receiving any gift money for your down payment, as this will all have to be documented.
- Get a Pre-Qualification
Getting a pre-qualification offers many benefits that can speed up your home purchase, and help get you a better price.
- You will save time by knowing what homes you can afford to focus your search.
- Your realtor will love you since you will save them time as well. Knowing your price range will allow them to easily identify potential home for you to look at.
- Your negotiation power may increase. If the seller knows you are a solid buyer, they may be more likely to accept your offer in order to get the deal done quickly.
- It will reduce your stress. Much of the tedious work of applying for a mortgage will be out of the way, and it can help speed up your closing process once you find your home.
- Finalize Your Mortgage
Once you have found your home and the contract has been accepted by both parties, you will need to finalize the mortgage with your lender. Underwriters will go over the loan and ensure everything is in order. Here are some things to keep in mind when it comes time to finishing the mortgage process.
- The home appraisal will need to be completed, and it will be reviewed by underwriters to ensure the home value is sufficient. If by some chance the home values for less than what you are paying, you will may need to come up with additional down payment money to finalize the loan.
- The lender will do a final credit check. It is pertinent that you don’t apply for any new credit until you close on your mortgage. Any changes to your debt to income or credit score could affect your final approval.
- The lender will check your bank accounts. Ensure you aren’t doing transfers between accounts, and you have explanations for all deposits coming in. They do this to ensure you didn’t receive any loan money to assist in your down payment.
- The lender will do a proof of employment check. It’s important you don’t switch jobs while in the process of purchasing a home without first checking with your lender. They will need to know if any new proofs of income will be required, and will need to evaluate your employment stability.
Sandia Area Federal Credit Union is here to make this process simple for you. We offer easy pre-qualifications, and a fast closing process. Plus, you could save thousands over the life of your loan with our great low rates. Connect with a mortgage specialist today to get started.
With a network of branch offices located throughout Albuquerque and Santa Fe, access to nearly 30,000 free ATMs, and state-of-the-art Mobile and Online Banking, Sandia Area provides service to our members locally, nationally and worldwide.
We serve people, families and organizations who care about the earth, people and recycling surplus; and those who live, work, worship, volunteer, or attend school in the counties of Bernalillo, Cibola, Torrance and Valencia, as well as the City of Rio Rancho and Kirtland Air Force Base.
505-292-6343 or 800-228-4031.
Sandia Area is an Equal Housing Lender. Sandia Area Membership required. Sandia Area Federal Credit Union (NMLS#561268) provides mortgage loans by partnership with Member's First Mortgage (NMLS# 149532). This is not an offer to extend consumer credit as defined by Section 1026.2 of Regulation Z.