August 7, 2020

The Three Steps to Getting a Mortgage

With so many mortgage companies out there, it’s essential to know exactly who is loaning you money. So, we wanted to show you just how easy applying for a mortgage can be with a lender who’s just right for you.

We’re a wholly owned subsidiary of BayCoast Bank, a thriving community bank that’s served the people and businesses of southeastern Massachusetts and Rhode Island for more than 150 years. We have all the financial capabilities of a mortgage company as well as a savings bank, which allows us to serve all your mortgage needs.

Although we’re based in Massachusetts, we provide mortgage solutions for customers all along the East Coast. Above all, we’re big on community involvement, customer education, and empowering you to make your best financial decisions. We’re not just another online mortgage website—we’re real people who you can call, talk to, and shake hands with.

Fixed-Rate Mortgages

Fixed-rate mortgages are the backbone of the mortgage lending business. They’re most commonly available in 15- and 30-year terms (the length of time you’ll be paying the mortgage). Homeowners who choose fixed-rate mortgages “lock in” their interest rate at the beginning of the mortgage—their rate and payment will never change over the life of the loan. 

Because an interest rate is locked in, fixed-rate mortgage payments aren’t affected by marketplace influences. This makes fixed-rate mortgages attractive to budget-conscious homeowners. In fact, the only reason a fixed-rate mortgage payment will ever change is if escrow for property taxes, homeowners insurance or HOA dues—additional costs that are commonly rolled into mortgage payments—is ever adjusted. 

A 15-year mortgage allows homeowners to lock in lower rates, pay less interest, and pay off their homes more quickly. However, it’s important to remember that the overall monthly payment on a 15-year fixed-rate mortgage will be higher, since you’re paying off a larger part of the principal with every payment.

If you’re looking for a lower monthly payment but still want the stability of a fixed-rate mortgage, a 30-year mortgage may be right for you. Your interest rate may be a bit higher (compared to a 15-year loan), but your monthly payment will be more wallet-friendly, since the amount of money you’re repaying is spread out across 360 (30 years x 12 months) equal payments.

1. Complete Your Application

We know this can all be intimidating, so we have a couple of options for you. 

  • Whether you’d prefer to apply online or contact us in person, we’ve made the mortgage application process a breeze.
  • Next, we’ll ask you if you’d like to sign your mortgage paperwork electronically. If you’d prefer, we can send anything that needs your handwritten signature by overnight mail. 

2. Send Us Your Documents

After you’ve signed everything, gather any supporting documents we ask you to provide and send them back to us. Once we’ve received the info we need, that’s all you need to do! We’ll take your completed application, combine it with a property appraisal, and take it to an in-house underwriter.

  • Here’s a list of the most common supporting documents we might need:
  • Tax returns, including W-2s, 1099s, and similar documents used to verify long-term income and employment
  • Pay stubs (to show your current earnings)
  • Bank statements
  • Written statements to help explain blemishes on your credit report (if applicable)
  • Gift letters (if friends or family are giving you money toward the purchase of your home)

3. Get Ready for Closing Day

Once your application has been approved and all conditions are satisfied, your closing will be scheduled. Closing Day is exciting—be prepared to sign your name a lot, make any required payments, and get the keys to your new home! 

Here are a few tips to ensure a smooth closing:

  • Review and sign your Closing Disclosure, which shows any fees and closing costs you’re expected to pay at closing, as well as the terms of your loan. There is a three-day waiting period from the time you execute your Closing Disclosure until you can close on the home sale.
  • Conduct a final walk-through of the property you’re buying to make sure all agreed-upon repairs have been made, the home is vacant, and it’s left in the condition you expected.
  • Transfer utilities to your name, effective on the day of your closing.
  • Bring any required funds in the form of a certified check, or be prepared to make a wire transfer.
  • Don’t forget your ID—since you’re signing official documents, the attorney and title company agents need to know who you are!
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