How to Get a Mortgage Loan: A Simple Guide
Buying a home is an exciting journey, but if you’re new to the process, you might be wondering: How do I get a mortgage loan? Don’t worry! We’re here to walk you through the basics so you feel confident taking the first step toward homeownership.
1. Understand What a Mortgage Loan Is
A mortgage loan is money borrowed from a lender to buy a home. You’ll repay this loan over time, usually in monthly payments. The lender holds the house as collateral, meaning they could take ownership of the home if payments aren’t made.
2. Check Your Finances
Before applying, take a look at your financial situation. Lenders like us at Northwoods Credit Union consider:
- Your credit score (higher scores often mean better interest rates)
- Your income and job stability
- Your current debts
- Your down payment amount
While a good credit score helps, many credit union mortgage loans offer flexible options for buyers with different financial backgrounds.
3. Get Pre-Approved*
Getting pre-approved shows sellers that you’re a serious buyer and helps you understand how much you can afford. To get pre-approved, you’ll provide financial documents like pay stubs, tax returns, and bank statements. We would review these and give you an estimated loan amount.
4. Find Your Home and Apply for a Loan
Once you’ve found the perfect home, you will complete a Purchase Agreement with the seller. Many people choose to work with a local realtor for this step. Once this agreement has been signed by all parties, you provide your Mortgage Loan Originator this document which gets the ball rolling for your mortgage loan.
We will update your application with any changes since your pre approval, work with you on loan terms, order an appraisal, and order title work.
5. Close on Your New Home
After your loan is approved, you’ll go through the closing process. This includes:
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- Reviewing and signing loan documents
- Paying any closing costs
- Receiving the keys to your new home!
Why Choose a Credit Union for Your Mortgage Loan?
Credit unions are known for offering competitive rates, lower fees, and personalized service. The best way to get a mortgage loan is to work with a lender that prioritizes your financial well-being—like a credit union!
Get Started Today
Applying for a mortgage loan doesn’t have to be complicated. Watch the video above where our Director of Mortgage Lending, Anna Mize, explains the process in simple steps. When you’re ready, reach out to us at Northwoods Credit Union, and we’ll help you every step of the way!
You can chat all things mortgage lending with us at one of these NCU branches:
- Northwoods Credit Union Cloquet – Avenue B
- Northwoods Credit Union Moose Lake
- Northwoods Credit Union Floodwood
*Not all applicants will qualify. Membership eligibility required. Equal Housing Opportunity. Federally insured by NCUA.