Mortgage

Conventional Loan

A conventional loan isn’t backed or secured by a government agency. It typically comes in several different term options, with the most popular being a 15 or 30-year fixed-rate loan. Whether you're a first-time homebuyer or a homeowner searching for more affordable refinancing options, a conventional loan may be the right fit.

Bridge Loan

A bridge loan allows you to borrow against the equity of your current home to use as a down payment on your new home. This can be a good option for those who can make mortgage payments on both properties and want access to the equity in the house they are selling.

Take-Out Loan

A take-out loan is a short-term mortgage that allows you to purchase a home before selling your current one.

Affordable Loan Options

NIFA
NIFA loans are designed for first-time home buyers whose income is below certain thresholds. These loans offer competitive interest rates and the potential for no down payment.

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HomeReady^®
HomeReady^® loans are designed for homebuyers who are looking for a lower down payment option. Borrowers do not need to be first-time home buyers but do need to meet certain income requirements.

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Federal Home Loan Bank (FHLB) Grants
Each year, FHLB makes a specific amount of grant funds available for first-time and non-first-time home buyers who meet specific criteria. These funds can be used for a down payment and/or closing costs.

Learn More

Government Loan Programs

There are two main types of government loans: Veterans Affairs (VA) and Federal Housing Administration (FHA) loans. VA Loans are government-backed loans that offer highly competitive interest rates with little to no down payment required. FHA loans are guaranteed by the Federal Housing Administration.

• VA
• FHA

Jumbo Loan

A loan attains jumbo status when its mortgage amount surpasses conventional loan-servicing limits. Because of this, you'll need a favorable credit score since you are borrowing above the guaranteed guidelines set by the agencies. With a jumbo loan, the more cash you have for a down payment and the more money you have in reserve, the better. Opting for jumbo mortgages can be beneficial when acquiring primary residences and secondary or vacation homes.

Have These Questions Crossed Your Mind?
Let Us Be Your Guide!

I’m a first-time homebuyer.  What do I need to know?

Knowing what to do as a first-time homebuyer can seem a little daunting. One of our goals is to educate you throughout the entire loan process. This education will enable you to make an informed decision on the best loan program that will fit your housing needs. The best way is to schedule a simple, no-obligation discussion. The discussion can be over the phone or in person. Here are some highlights of typical questions that we will go over in our meeting:

• Is my credit score high enough to buy a house? Credit scores range from a low of 300 to a high of 850.  While there’s no magic credit score that will guarantee you will be approved for a mortgage, generally speaking, the higher your credit score, the more borrowing options you may have. We will determine if your score is at the right level to get a loan. If it’s not, that’s okay - we will get a game plan together so that you know what actions are needed to improve your credit score.
• How much do I need to put down on a home? While many people think you can’t buy a home without 20% down payment, many mortgage options allow for lower or even no down payment. A Security National Bank mortgage loan originator can help you determine what works best for your finances and what programs you may qualify for.
• What parts of my finances does a mortgage lender review? A lender will check your credit score and history, your debt-to-income ratio, which is a measurement of the amount of debt you have compared to your income, and take a general look at how much money you have in checking and savings accounts in order to be confident you’ll be able to pay for your mortgage, taxes and other costs associated with buying a home.
• Are there any advantages to being a first-time homebuyer? Yes, there can be! Depending on your income level, there are loan programs specifically for first-time homebuyers with low to moderate incomes. These programs offer low or no down payments, lower private mortgage insurance (PMI) rates, slightly lower interest rates and the potential for some down payment assistance grants in certain areas and for limited time periods each year. Please contact your mortgage loan originator for details to see if you qualify.
• What are the benefits of getting pre-qualified? Mortgage pre-qualification is a simple process that uses your income, debt, and credit information to let you know how much you may be able to borrow. Getting pre-qualified before you shop for homes can help you:
  • Focus your search – Establishing your price range upfront means you can target the right homes in your search
  • Move forward confidently – When it’s time to make an offer, you’ll have the confidence of knowing you can back it up
  • Know your options – Seeing the loan amount, interest rate, and monthly payment you could qualify for means you’ll be able to make the mortgage decision that works best for you

How much house can I afford?

“What can I afford?” may have been one of the initial questions when you started shopping for a new home. There’s a simple way to help find the answer: Calculate the size of the monthly mortgage payment, not the size of the home you might purchase. A mortgage loan originator can help with these calculations.

Step 1:  Use some simple math

Multiply your gross monthly income by 0.25: Your gross monthly income is how much you make before taxes or other costs are taken out; if you’re buying with a spouse or partner, combine your gross income before multiplying. This equation equals 25% of that income. This percentage of gross income is generally considered a comfortable level for most people although each person’s situation is different and can be greater or less than 25% of gross monthly income.

• Example: If you and your spouse earn $6,000 per month, a manageable mortgage payment for most people is about $1,500 per month ($6,000 x .25).

Step 2:  Adjust for your own situation

Take the amount from Step 1 and update your budget. Imagine that you were paying that amount each month.  Be sure to list any payments on existing debt, such as student loans, car payments, or credit card debt. Also, include the new expenses you’ll have as a homeowner that you may not have now, such as monthly payments for homeowner’s insurance, property taxes, interior and exterior maintenance, and services like trash pickup and water that are probably included in your rent today. Some neighborhoods and most condominium complexes will also charge you homeowners association (HOA) dues.

• Example: You and your spouse currently pay $1,500 a month in rent and your budget balances. You estimate that those new taxes, insurance, utilities, and upkeep will cost $350 per month. You might decide you don’t want your mortgage payment to be more than $1,150. 

Step 3: Evaluate

Did the numbers that you put together work for you?  If the monthly payments are too high for your budget, consider finding a less expensive home. If you are comfortable with the numbers or think that you can afford more, you can adjust to a more expensive home.

If you don’t want to lower your price range, there are other ways to build your buying power. Start by considering factors that reduce the overall size of your loan, which will reduce your monthly payment. Two of those factors include:

• Your credit score: A score of 780 and above means you’ll likely receive the most competitive interest rates.  You can work to improve your credit score by reducing excess debt and paying bills on time. The higher the credit score, the more you can help to reduce the interest rate you will receive and help reduce your monthly payment on your new mortgage.
• Your down payment amount: A larger down payment will reduce the overall loan amount and your monthly payments. Take into account the amount of funds you are comfortable saving towards the down payment each month and how long it would take to save the down payment you desire when considering this option. A mortgage loan originator can also show you what the monthly payments will look like for various down-payment scenarios.

What are the home purchase basics that I need to know?

In general, a home purchase may be your largest financial transaction to date, so it's important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

Count On Your Mortgage Loan Officer:

• We'll assist you in selecting the best loan to meet your personal situation and goals (This single decision can save you thousands of dollars throughout the years).
• We'll keep you informed of your loan status throughout the entire process.
• We'll keep your Real Estate Agent informed of our loan progress. (Note: Your personal information is always kept confidential between you and us; only deal points and progress are shared.)
• We'll get you the appropriate loan at the best rates and fees. This will save you significant money up-front and throughout the years to come.

Count On Your Real Estate Agent:

• They'll preview available homes to weed out those that are overpriced or undesirable.
• They'll present the homes that suit your needs as you've defined them.
• They'll help you determine the difference between a "good buy" and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.
• They'll negotiate the best deal for you. With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the seller and may make the difference between the seller accepting your offer or someone else's, even if your offer is lower!

Count On Yourself:

• Keep your Real Estate Agent informed of any questions or concerns as they develop.
• Provide documentation and decisions as soon as reasonably possible to keep the process moving. By doing so, many of the details are taken care of early in the process, so you can comfortably focus on preparing to move.
• Enjoy purchasing your home, but remain objective throughout to make the best business decisions for you.
• Make sure you apply to be pre-qualified as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.

How much do I need to save for a down payment on a home?

When you’re considering purchasing a home, the costs are at the top of your list. One of the most important costs is the down payment. Here are some things to consider when saving for a down payment so that you can feel confident going into the mortgage process.

What is a down payment? A down payment on a mortgage is the initial payment you make when purchasing a property. It’s calculated as a percentage of the total purchase price that you pay upfront. The remaining balance is typically financed through a mortgage loan. The money you put down represents your initial investment in your home. Lenders like to make borrowing decisions they feel confident about, and a large down payment helps suggest to them that you’re fully committed to the transaction. In return, a lender may offer you a lower mortgage interest rate.

How much will I need to save for a down payment? The typical response is that you’ll need to pay at least 20% of the total purchase price. The truth is that lots of people put down way less than 20%. 

• In certain cases, you may even be able to get a mortgage with as little as 3% - or even nothing – down.
• At various times of the year, there are first-time homebuyer grant programs available to eligible buyers that can help with the down payment
• IMPORTANT: If your down payment is less than 20% of your home’s price, you will likely need to pay for mortgage insurance, which adds to your monthly costs. So, you may need to reduce your target home price if you plan to put less than 20% down. The minimum down payment required can vary depending on many factors, including the type of loan you’re applying for, your credit score and your lender’s requirements.

What’s the right choice for you? In the end, the down payment you make will depend on how much you have in savings and what other things you might need that money for.  It’s okay to go with 20% down, and it’s also, in certain circumstances, okay to put down less or more. The best thing you could do is ask a Security National Bank mortgage loan originator for details on loan programs that are available to you, including how much down payment is required for each loan that you may qualify for.

What information do I need to provide my mortgage officer?

Necessary documentation varies from borrower to borrower and from loan to loan. The following is a list of the most common documentation requirements, though depending on your situation and the loan applied for, more, less, or different documents may be requested.

Identification 

• Driver's license
• Social Security card
• Proof of veteran status (for VA loan only)

Employment & Income

• Pay stubs: last 30 days
• W2 forms: most recent 2 years
• Federal income tax returns: most recent 2 years
• Child support/alimony: court order or 12-month canceled checks or bank statements showing consistent deposits if you wish it to be considered
• Award letters: Social Security, pension, disability, etc.
• Written explanation: if employed less than 2 years or if there's been a gap in employment the last 2 years

Self-Employment

• Business tax returns: most recent 2 years (personal, partnership & corporate), all schedules
• Year-to-date profit & loss: including previous 2 years
• Business bank statements: most recent 2 months

Assets

• Bank statements: most recent 2 months for all accounts listed on application (Example: checking accounts, savings accounts, CDs, money market accounts, etc.)
• Retirement funds: most recent quarterly statement if retirement income is being used for qualifying
• Other investment: most recent quarterly statement if closing funds are coming from an investment account
• Large deposits: documentation for large deposits outside of payroll appearing on the bank statements (definition of a large deposit varies by loan program)
• Gift letter: if part of the down payment is coming from a gift, provide a gift letter stating the funds will not need to be repaid (your lender can provide you with a letter template)

Property Ownership

• Most recent mortgage statement
• Property tax bill
• Copy of homeowner's insurance binder and bill
• Verification of homeowner association (HOA) dues
• Copies of current leases for rented units

Home Financing Do's & Don'ts

Do's for Successful Financing

• Get a pre-qualification letter from Security National Bank.
• Maintain your current job and income.
• Protect your credit score and continue to make all payments on time.
• Avoid large purchases.
• Record all bank transactions, especially large deposits and transfers between accounts.
• Respond promptly to all requests to provide documentation, sign documents, answer questions, etc.
• Remain available and reachable throughout the entire mortgage process.
• Call your mortgage loan officer anytime you have a question.

Don’ts to Ensure a Smooth Mortgage Process

• Apply for a new credit card, open new credit accounts or close currently open credit accounts.
• Have your credit pulled by other creditors.
• Make any employment or compensation changes without notifying your mortgage loan officer.
• Co-sign with anyone else for a home, auto, or any other type of debt.
• Open new bank accounts, close existing bank accounts, or move large amounts of money between accounts.
• Deposit large amounts of cash without consulting with your loan officer to discuss requirements regarding paper trails and eligibility for use as funds for closing.
• Change banks or move significant assets to other bank investment companies.

Home Loan Milestones

Our goal throughout your home loan process is to keep you informed every step of the way. As things progress, you can expect to hear from us each time your loan reaches one of these key milestones.

1. Here we go!

Once your offer on a home has been accepted, you will complete a mortgage inquiry to begin the application process. Within three business days of submitting your application, you will receive a disclosure package and a loan estimate, including important loan information, such as the total cost of the loan, the interest rate offered, estimated monthly payments and expected closing costs

2. The appraisal is ordered

Once you have signed the disclosures and we’ve received your intent to proceed, your appraisal will be ordered. The appraiser will schedule a visit to the home, complete the appraisal report and submit all required documentation.

3. Your loan goes to processing

Once all documentation has ben collected, our loan processors will review everything for completion and accuracy, and request any additional paperwork that may be needed.

4. Final approval is received

The underwriter will have finished reviewing the entire loan package to determine whether your loan meets the guidelines for approval. Once approved, the loan will be sent to closing.

5. Congratulations, it’s time to close!

It’s time to schedule a closing appointment. At least three business days prior to your appointment, you’ll receive your closing disclosure that will outline your loan terms and how much money you will need to bring to settlement. Once documents have been signed, funds will be distributed and ownership of the property will be transferred from the current owners to you - making the house officially yours!