Preparatory Steps for New Mortgage Applicants

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Spirit of Texas Bank
Image: spiritoftexasbank.com

A top-ranking lender in its region, Spirit of Texas Bank provides mortgage services to both novice and experienced homebuyers. Spirit of Texas Bank remains committed to helping borrowers navigate each step of the mortgage application process.

Applying for one’s first mortgage can be an intimidating process, particularly for borrowers with nontraditional financial histories. Experts suggest that borrowers begin by looking at their credit scores and reports, as mortgage professionals will require this data to grant pre-approval. If a report reveals any problems, such as a history of late payments, a borrower can begin remedial measures. These may include making all payments on time, keeping balances below 25 percent of limits, and staying away from any major credit purchases.

Potential homebuyers will also need to collect the documentation that lenders will need to verify income. Most lenders require tax returns, detailed information about debts, and the source of any major account deposits. A separate account for a down payment and closing costs may minimize the examination process, particularly if all necessary funds are in the account no less than 60 days before the loan application date.

What Is SBA Lending?

Spirit of Texas Bank  pic
Spirit of Texas Bank
Image: spiritoftexasbank.com

The Spirit of Texas Bank is recognized as one of the top 10 SBA lenders in the country. Spirit of Texas Bank serves the citizens of Texas with full-service banks in multiple locations and offers loans, deposits/withdrawals, and competitive rates for your personal or business needs.

SBA stands for Small Business Administration, and it often refers to 7(A) loans, which are the SBA’s main program for helping small start-ups and existing businesses with their financing. The SBA does not directly loan money to companies, but instead guarantees loans from qualified and participating institutions, such as Spirit of Texas Bank.

Another type of SBA loan is a Certified Development Company or 504 loan. These are administered by nonprofit corporations that assist the economic development of their immediate communities, and these corporations are located nationwide. They operate on a state-to-state business. These loans assist growing businesses with long-term financing and security for their fixed assets.