Purchasing a home can be one of the most stressful yet rewarding processes you may experience in your lifetime. Between the seller accepting your offer, a down payment, credit scores, mortgage rates, and property taxes, it’s easy to feel overwhelmed.

NexTier Bank is here to help guide you through the mortgage process and do everything we can to help make your dream a reality.

How Much Home Can You Afford?

Many realtors require a prequalification before they show you a home. A prequalification is meant as a guide to help the real estate agent determine what you can afford. Prior to purchasing the home, your Consumer & Mortgage Loan Officer will use your stated income and pull your credit report to see the amount of home you can afford.

To request a pre-qualification, you’ll need to provide the following information:

  • Income Information: Stated income. NexTier Bank does not require proof of income like paystubs, W-2 forms, or tax returns pre-qualifications.
  • Asset Information: Information about your assets, the items of value that can be converted to cash, will be requested. You may need to reference back account statements, investment information, and documentation for any gifts of money/equity from family or friends.
  • Identification: Valid (unexpired) government issued photo ID (Driver’s License, State ID card, Passport, etc.)

It’s important to note, often Consumer & Mortgage Loan Officers do not take into consideration additional costs when telling buyers how much they can “afford.” Before buying the maximum amount that you prequalify for, consider the cost of things like daycare, medical bills, home maintenance, appliances, and furnishings.

Once you know your budget, it’s time to start the home buying journey!

You Found Your Dream Home, What’s Next?

After you find the home of your dreams, you’ll need to contact your Consumer & Mortgage Loan Officer and make an official mortgage application.

To apply for a mortgage loan, you will need to submit:

  • Name: Your name matching a valid government issued photo ID.
  • Social Security Number: Used to obtain a credit report after you consent to credit being pulled. NexTier Bank does not require a social security card at the time of application.
  • Income Information: Stated income.
  • Property Address: The property address of the home you wish to purchase. A copy of the signed sales agreement will be requested later for purchase.
  • An Estimate of the Value of the Property: This is typically based on the purchase price of the home.
  • The Mortgage Loan Amount Sought 

Once you’ve submitted those six pieces of information, your Consumer & Mortgage Loan Officer will forward your loan request to begin the underwriting process. During this process, the Underwriter will review your financial information for accuracy and request additional verification information including:

  • Income: The last two paystubs, W-2s or 1099s from the last two years, and/or the last two years of completed tax returns (personal and business, if self-employed).
  • Assets: Most recent statements for checking, savings, retirement, and/or investment accounts.
  • Debt: Monthly statements or payoff letters, if applicable.

The Underwriter will evaluate your credit history, assets, and loan size to determine the ability to repay the loan, order an appraisal to obtain the market value of the home, and order a title search to ensure the property has a clear title. This process can take anywhere from three to four weeks to complete, and if approved, your loan will move to the closing process. Your closing agent will schedule a time for you to sign all official paperwork and receive the key to your new home!

ASK OUR EXPERTS

Our Consumer & Mortgage Loan Officers will work with you to determine what you can afford with competitive rates, competitive fees, and a quick answer regarding approval.

Visit the NexTier Bank website to Check Rates and find a Loan Officer near you!