Home Loan Roadmap

This video embed is to another website not owned or operated by First National Bank. First National Bank is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by First National Bank of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from First National Bank.

A good homebuying experience starts with preparation and confidence. Whether you’re a first-time homebuyer, or just need a refresher, feeling comfortable with the mortgage process is key. Consider this your roadmap to everything you’ll need to prepare for in order to qualify for your home loan.

Step 1: Prequalification

The first step when you start looking at properties is preapproval. Start your application online or in person.

Share these with your mortgage team as you start your mortgage application. It’s ok if you don’t know every answer right away – just skip it and we’ll contact you later. Or if you want to walk through the application with someone you know at your local branch, work with your personal lender and they’ll help you get started.

Once the mortgage team has reviewed your application, your preapproval letter will be issued with preliminary loan qualifications. Use this letter to show sellers you’re ready to make a deal.

In the meantime, start to gather your financial documents like:

Gather financial and identifying documents like:

Paystubs
Bank statements
Tax forms
Driver’s license
Social security card
Information on other properties you own

Step 2: Getting Under Contract

Once you’re prequalified, it’s time for the fun part: house shopping! Work with your realtor to find the perfect home to fit your needs, and once you’re under contract it’s time to pick up your mortgage application where you left off. For starts, you’ll need:

Two years of tax returns
Most recent paystubs
Most recent W-2s
Bank statements going back two months
Quote from home insurance provider

For a list of other documents you may potentially need, click here.

Step 3: Underwriting

After all the paperwork and documents are submitted, the underwriters will check your credit, verify employment, evaluate your debt-to-income ratio, and review the home appraisal. They are making sure you can repay the loan, and that the property is worth the purchase price. During this process, there are a few obstacles that could prevent your loan from getting approved by the underwriters. Be wary of potential roadblocks:

Buying large items before closing (like a car or boat)
Making large deposits/withdrawals from your bank account
Switching banks
Changing jobs
Opening a new line of credit or co-signing on a loan

Step 4: Closing

Once the underwriters have confirmed everything checks out, you’re “clear to close”. Your loan is approved and it’s time for final paperwork. Closing typically happens at the title company, but can be accommodated to occur at the bank so long as all parties agree. At closing, you’ll:

Sign the mortgage documents
Pay closing costs
Receive the key to your new home!

You’ll also find out where and how you’ll be making your monthly mortgage payments.

First National Bank is ready to walk you through your mortgage application from prequalification to closing. Nothing overly complex, just a tailored process that’s right for you.