How to Apply for Your First Mortgage Loan

One of the most important steps involved in the process of buying a home is obtaining a mortgage. By knowing what to do and what to expect, you will find that you have a higher level of confidence in making decisions and establishing yourself as a homeowner. While purchasing your first home is an exciting endeavor, it is also a challenging one; that is, if you do not understand the mortgage process. This guide is being provided to you to assist you with the navigation process of applying for your first mortgage. As you maneuver this process, we here at Somerville Bank want you to know that we are standing by and waiting to assist you.

Prior to Shopping for Your First Home

Did you know that applying for a mortgage actually starts prior to your shopping for your home? Most people don’t, but it is true. You will need to outline what you are able to afford, learn the basics of home buying, and learn how to evaluate your overall level of financial readiness.

You may also contact one of our specialists here at Somerville Bank. We can provide you with the educational basics and the tools regarding financial literacy that will help you get a jump on the application process and that of becoming an actual homeowner.

Meet with a Loan Officer

Once you have reviewed the basics with our specialists here at Somerville Bank, you should consult with one of our many loan officers. This professional will help in the review process as it relates to your income and your expenses.

They will be able to pinpoint which types of mortgage loans that you qualify for and the overall amounts that are available to you. Our specialists will provide you with a number of tips and techniques that will help connect you to the soundest options for your needs.

Examples of these include – but are not at all limited to – the following:

1. It is imperative to avoid companies that provide you a mortgage and state that the interest rate will not be affected by credit problems. The truth is, your credit does impact what you qualify for, what you pay in interest, and the overall term of your loan.
2. You should avoid accepting mortgage loan offers that have prepayment penalties in place. In short, this means that if you want to pay off the loan early, you will be required to pay an additional fee for not paying according to the terms of the loan.
3. When searching for a mortgage loan, it is important to avoid working with professionals that will attempt to falsify information to ensure that you qualify. You should avoid falsification at all costs and never sign any document that contains information that you know is considered to be false.
4. When applying for a mortgage loan for the first time, you should always learn as much as possible about all of the fees associated with that loan. Before committing through a signature, a loan officer should go over all aspects of the paperwork with you. If you find that you do not understand something, do not sign. Instead, ask more questions for clarification. Once you are in full understanding, you may then sign the paperwork if you agree to the terms of the mortgage loan.
5. If a credit issue is holding you back from obtaining your first mortgage loan, do not work with credit counseling or credit consolidation agencies that are fraudulent. It is acceptable to work with credit counselors that are considered to be legitimate and offer legitimate services. If you are in need of a credit counselor, please inquire with us here at Somerville Bank. We can provide you with tools and resources that will be highly beneficial to your needs – that are legitimate.

What is the Mortgage Lender?

The mortgage loan lender is the financial institution that is responsible for providing the funds for the loan that you obtain. If you were to obtain your loan with us here at Somerville Bank – for example – we would be considered the mortgage lender.

The lender has the responsibility of collecting the payments associated with your loan. If you require more information on this topic, please stop by one of our many locations for immediate assistance.

Discovering a Mortgage Loan That is Right for You

Once you start the process of looking for a mortgage loan, you will find that you have seemingly endless options. The goal is to find a loan that is right for you, your finances, and your unique situation. It all goes down to three components that you should be especially considerate of:

1. Type – There are fixed rate loans, adjustable-rate loans, conventional loans, insured loans, and government-guaranteed loans. You should narrow your search down by learning about all of the different types of loans and choosing the one that closely matches what you are looking for in a mortgage loan.
2. Rate – Will you choose a fixed rate loan, an adjustable-rate mortgage, will you pay higher interest with a lower down payment or less interest with a higher down payment? You should research each of these options and determine which sounds the best for you.
3. Loan Estimate – When reviewing mortgage loans, always evaluate all of the components of the estimate that you are provided. This includes the summary of the terms of the loan, the actual amount of the loan, the closing costs, and all other associated fees.

Contact Us Today

We here at Somerville Bank have assisted thousands upon thousands of people in getting their first mortgage loan to purchase their dream home. We continue to offer our services to those in and around the communities in which we operate. If you need assistance with the information contained in this guide, any aspect of the mortgage loan process, or would like to make an appointment, visit us now at one of our many locations.

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