Provident State Bank - How to Land a Mortgage
Getting a new home is easier than you might think if you follow a few simple steps.
We’re covering the most important step, securing a mortgage. Michael Sterner, the Executive Vice President of Provident State Bank’s Mortgage Division is teaching us out how simple securing a mortgage can be.
Getting a mortgage might be the biggest financial decision of your life, so it is important that you are prepared financially before you shop for a home. There are three steps people can take to make the process a little easier. The first step is planning and pre-qualification.
- Find a lender that fits with your needs. Always interview several lenders and have a detailed and honest conversation about your finances. Trust your instincts after consulting with several.
- Try to do business with a local lender who knows the local customs, uses local appraisers and has a physical commitment to your community. Outsiders have no reason to care about their local reputation.
- Don’t decide solely on rates and fees. Pricing variances are usually small and should only be one part of your overall decision. Comfort level, trust and warm recommendations are just as important and should be included in your final decision.
Michael says a big part of this is to not rely on a cyber lender. These companies tend to price low and the service usually supports the old adage “you get what you pay for.”
Next on the list is gathering important documentation. Get copies of your last 2 years W-2’s, last 2 pay stubs, last two bank statements and your federal tax returns for the last two years.
In preparation for landing a mortgage, Michael says you may want to hold off on other major purchases. Lastly, when trying to land a mortgage, Michael says to be active and responsible.
- Respond to the lenders’ request to proceed with your loan.
- Respond quickly to any request by the lender to send additional documentation or for any explanation.
- Read your Commitment Letter for any other requirements made by the lender prior to or at closing.
- Understand that your loan approval requires your immediate and full cooperation and participation. Don’t schedule vacation until after settlement.