What to Expect When Applying for a Mortgage

Applying for a mortgage can be intimidating, but it doesn’t have to be. Whether you're a first-time homebuyer or it’s been a while since your last home purchase, knowing what to expect can help alleviate some of the stress. In this guide, we'll walk you through the typical steps involved in applying for a mortgage at Southside Bank and the paperwork you'll need to gather along the way.

Preparation and Research: Before diving into the mortgage application process, it's essential to assess your financial situation and research the different types of mortgages available. Determine how much you can afford to borrow using a mortgage calculator and decide what type of loan best suits your needs.

Choosing a Local Lender: It’s important to establish a relationship with a local mortgage lender so that they can fully understand your financial situation and guide you through the mortgage process. We have lenders throughout Texas and you can reach out to one closest to you at southside.com/personal/mortgage/meet-our-lenders.

Getting Pre-Qualified: One of the most important steps in the process is to receive pre-qualification of your loan amount so you will know your home-buying “budget.” This involves completing a mortgage application. 

Document Submission: Once you have completed your application you will need to submit various documents to verify your financial information. Here are some examples of documents that may be requested:

• Proof of Income: Pay stubs from the last 30 days, W-2 forms from the last two years, and income tax forms from the last two years.
• Asset Documentation: Copies of checking and savings account statements for the last two months (all pages), and copies of quarterly or semi-annual statements for checking, savings, IRAs, CDs, money market funds, 401(k)s, etc.
• A copy of your driver’s license.

Home Shopping: With the help of your realtor, you will be able to search for a home that fits both your budget and needs.

Appraisal and Home Inspection: After your application is submitted, your lender will order an appraisal to determine the value of the property you're purchasing. In addition, a home inspection is often recommended to identify any potential issues with the property.

Underwriting Process: Once all documentation has been submitted, your lender will review your application and make a decision on whether to approve your mortgage. This process typically involves verifying your financial information, assessing the property's value, and ensuring you meet the lender's eligibility criteria. Southside Bank mortgage lender Vicki Corley says, “The thing to be aware of is that lenders must ask the exact same questions to all applicants. Lending guidelines mandate what we must obtain to approve an application. Be prepared, you may need to provide documentation more than once during the process based on what underwriting asks for. Be sure to breathe! It’s all worth it in the end.” 

Closing: Once your loan is approved, your lender and realtor will team up with a title company, order a survey, and set a date and time for all parties to attend the closing.

Post-Closing: After closing, you'll begin making monthly mortgage payments according to the terms of your loan. It's important to stay on top of your payments and notify your lender if you experience any financial difficulties. For loans serviced by Southside Bank, you’re able to add your mortgage directly to your online banking account and can make payments there. Ask your lender if this feature applies to your loan. 

By understanding the steps involved in applying for a mortgage and gathering the necessary paperwork ahead of time, you can streamline the process and increase your chances of success. Remember to work closely with your lender and seek guidance from a trusted real estate professional to ensure a smooth home-buying experience.