Tag: mortgage lender

What to Know Before Applying for a Mortgage: A Checklist for Homeowners

Posted on by First Western Trust Bank

Applying for a mortgage is an exciting step toward homeownership, but it can feel overwhelming if you’re not prepared. With the right knowledge and documents in hand, you can streamline the process and approach it with confidence. This checklist outlines everything you need to know and how to make the application process as smooth as possible.

Key Documents and Information You’ll Need

Lenders require a range of documents to assess your financial stability and determine your eligibility for a mortgage. Be prepared to provide:

  1. Proof of Income
    • Recent pay stubs (typically from the past two months).
    • Tax returns and W-2s from the past two years.
    • If self-employed, profit and loss statements and 1099 forms.
  2. Proof of Assets
    • Bank statements from the past two months for checking, savings, and investment accounts.
    • Documentation of other assets, such as retirement accounts or properties.
  3. Credit Information
    • Authorization to pull your credit report.
    • Explanation of any credit issues, such as late payments or defaults.
  4. Debt Information
    • Documentation of outstanding debts, such as student loans, credit cards, or car loans.
    • Monthly payment amounts for each debt.
  5. Identification
    • Government-issued photo ID (e.g., driver’s license or passport).
  6. Property Information (If Known)
    • Purchase agreement for the home you intend to buy.
    • Details on the property’s taxes, insurance, and HOA fees (if applicable).

Understanding Key Financial Metrics

  1. Credit Scores
    Your credit score is one of the most important factors in determining your loan eligibility and interest rate. Most lenders prefer a score of 620 or higher, but a higher score can unlock better terms.

Tip: Check your credit report in advance and address any inaccuracies or debts that could be paid down to improve your score.

  1. Debt-to-Income Ratio (DTI)
    Your DTI compares your total monthly debt payments to your gross monthly income. Lenders typically look for a DTI below 43%, though lower is preferable.

Tip: Reduce unnecessary debts before applying to strengthen your financial profile.

  1. Pre-Approval
    Getting pre-approved for a mortgage provides an estimate of how much you can borrow and demonstrates to sellers that you’re a serious buyer. Pre-approval involves submitting financial documents and undergoing a credit check, so it’s a more detailed process than pre-qualification.

Preparing for the Application Process

Here are steps to help you stay organized and confident as you apply:

  1. Save for a Down Payment
    Determine how much you can afford to put down. Conventional loans often require 5-20%, though some programs allow for smaller down payments.
  2. Set a Budget
    Use a mortgage calculator to estimate what you can afford based on your income, expenses, and the expected loan terms.
  3. Avoid Major Financial Changes
    Steer clear of opening new credit accounts, making large purchases, or switching jobs before or during the application process.
  4. Shop Around for Lenders
    Compare rates, fees, and loan terms from multiple lenders to find the best fit for your needs.
  5. Understand Loan Types
    Research the differences between fixed-rate, adjustable-rate, and government-backed loans to determine which suits your goals.

How First Western Trust Simplifies the Process

At First Western Trust, we understand that applying for a mortgage can feel daunting, especially if you’re a first-time buyer or haven’t gone through the process in years. Our experienced team is here to make it easier by:

  • Providing Clear Guidance: We explain every step of the process, helping you understand what’s required and why.
  • Streamlining Documentation: Our digital tools and expert advisors help you gather and submit necessary documents quickly and efficiently.
  • Offering Tailored Solutions: We work with you to identify the right loan type and terms based on your financial situation and goals.
  • Pre-Approval Support: We’ll help you get pre-approved so you can shop for your dream home with confidence.

Final Thoughts

Being prepared before applying for a mortgage can save you time, reduce stress, and improve your chances of approval. By organizing your documents, understanding financial metrics like credit scores and DTI, and working with a trusted lender, you’ll be ready to navigate the process with ease.

Ready to take the next step? Contact us today to speak with a mortgage expert and start your journey toward homeownership with confidence.

How First Western Trust Can Help You Find the Right Home Loan

Posted on by First Western Trust Bank

Even in the best of circumstances, finding the right mortgage loan can be an extremely complicated and daunting process. Fortunately, at First Western Trust, we’re here to help. With decades of experience with high-net-worth individuals and a genuine understanding of a family’s financial needs in a constantly changing market. 

Experience With High-Net-Worth Individuals

At First Western Trust, we’re proud to offer a vast array of mortgages for all clients. We have years of experience and have successfully completed mortgages in all fifty states, giving us some of the broadest perspectives on the market today. No matter our client’s financial situation, we’re here to help ensure they get the mortgage product they need, and we guarantee that we offer superior service to every one of our clients.

However, we also understand that high-net-worth individuals have specific requirements and need concierge-level services for managing their portfolios. This high level of needs demands that high-net-worth families partner with a bank that knows how purchasing a home will impact their portfolio. 

For example, a high-net-worth individual may need a jumbo loan to finance their property since it is valued too high for a conventional conforming loan. At the same time, a family may buy a larger home for a growing family. They may also buy a vacation home to spend a summer at or be looking to downsize towards retirement.

For any reason, a person obtains such a mortgage, mortgages for high-net-worth individuals are always more complex than mortgages than average home loans. A high-net-worth family may need to consider various implications of their loans, including how such a mortgage will impact their overall banking services or when it may be appropriate to begin working with a private bank to handle their financial needs.

Types of Loans Offered

Our mortgage consulting team works closely with high-net-worth clients to ensure we find the right solution for their needs. Furthermore, we work closely with our clients at all steps of the mortgage planning process, ensuring they are comfortable with the various financial solutions provided. 

At First Western Trust, we offer many loan types and services. We offer jumbo loans, conventional loans, loans for second homes, portfolio loans, investment property loans, and deed-restricted loans.

This vast array of loan types can be overwhelming, and even the most financially astute of clients may need assistance differentiating the best product for their needs. Not knowing how to identify the right loan is entirely understandable, as mortgages for high-net-worth individuals may have various financial implications, including:

  • How a mortgage will impact tax planning
  • The need to fold in a mortgage with overall estate planning
  • The need to balance repayment of a mortgage loan with investing in the stock market, businesses, and repayment of other debt

High-net-worth individuals need to work with a bank like First Western Trust. At First Western Trust, we have experience working with clients with extremely specific and complex needs. We understand the intricacies and implications these products can have on a portfolio. By working with our clients, we can help them identify which loan best suits their needs and ensure they get a more valuable product than one found at any other national chain of banks. 

More to the point, we also know that our clients demand the highest level of service and as much time as possible to consider a loan’s implications on a portfolio. That’s why we ensure that we provide our clients with as much detail as possible. We always give all closing figures at least 72 hours in advance. Doing so enables our high-net-worth clients to be as prepared as possible for closing. 

Final Thoughts

Jumbo loans, mortgages for second homes, investment property loans and more are major loans that can have a massive impact on the financial future of high-net-worth individuals and their ability to plan their finances for years to come. That’s why a bank with no experience in this area can’t just handle mortgages for high-net-worth individuals.
First Western Trust has years of experience working with high-net-worth mortgage lenders and ensuring that any home loan ultimately fits with the financial future of these individuals. We’re here to fulfill our customers’ mortgage needs and help them get whatever mortgage loan will fulfill their financial planning requirements. Contact a Mortgage Loan Officer today for more information on how we can help you get the mortgage loan that fits your financial future.