The Mortgage Application
Once you have found a home to buy, you’re ready for the next step in the homeownership journey: the application for a home loan. Knowing the steps along the way can make an otherwise overwhelming process go more smoothly, and we’re here to help you through the process. Here are the steps you'll follow to ensure that your New Mexico mortgage loan application remains on track.
1. Complete Your Online Mortgage Application
First, you’ll be required to submit an application that involves providing information about yourself, the property, your income, assets, and debts. After you’ve submitted your application, you’ll need to provide your consent to proceed so we can review your application.
2. Bring Your Documents to our Credit Union
At this stage, we will need documentation to verify the information that you provided us with your application. These may include signed disclosures, pay stubs, proof of down payment, bank statements, tax returns, W-2s, and details of your employment – for you and any co-borrower.
3. Get a Loan Estimate
Our Mortgage team will assess your application and documentation to understand your financial situation and the property you want to purchase. Within three days of receiving your mortgage application, you’ll receive a loan estimate estimating the fees and closing costs for your mortgage, like origination fees, appraisal, and title work. The document also summarizes your monthly payments and loan terms.
4. Get a Home Appraisal
Before we approve your loan, we will order a home appraisal to obtain the estimated market value of the property and ensure that the value of the property is in line with the purchase price. Factors that will determine the appraised value include the condition of the home, the value of nearby homes that have recently sold, the number and size of the rooms, and any other amenities like a fireplace or landscaping.
5. Receive the Ultimate Decision
Your Los Alamos, Española or Santa Fe mortgage loan officer will forward the paperwork to a loan processor, who will assess the documents and also prepare and review your loan. An underwriter will then review your application to make the final decision.
6. Review Your Documents
Once your loan has final approval, we will set a closing date and let you know the amount you need for closing costs plus the final loan terms. You can lock in your interest rate at least ten days before closing.
Close Your Mortgage
You’re now ready for closing at a local title company chosen by you or the seller. This is the point where you’ll review all the closing documents and ask any questions you may have about the terms of the agreement. You’ll sign the closing documents and pay the costs of processing your mortgage.
And after that, you get the keys to your new home! Contact DNCU to learn more about mortgage loans in New Mexico.