Buying A Home

Your New Home Starts Here

Buying a Home IntroductionCongratulations! If you are thinking about purchasing your first home or the home of your dreams, you have begun a very exciting journey! Home Ownership is a big part of the American Dream, and is one of the biggest financial decisions and investments most people will ever make.

Buying a home can be confusing, but that’s why our licensed and knowledgeable Mortgage Loan Originators are here to help inform and educate you throughout the process. They will take the time to understand and assess your current financial situation, as well as your long-term financial goals. Together with your Mortgage Loan Originator, you will select the loan program that meets your needs and helps you achieve your specific goal. We will make sure you are completely satisfied with our service and your loan solution.

Our Mortgage Loan Originators will help you:

Getting pre-qualified is great for two reasons:

First, it will improve your purchasing power. Sellers and Realtors® feel more comfortable negotiating a contract with people who are already pre-qualified because it increases the chance that they the buyer can quickly get financed (some will ONLY work with people that have been pre-qualified). This means that the real estate transaction can go a lot smoother than with someone who is not pre-qualified.

Second, getting pre-qualified is recommended because it gives you a clear idea of how much you can afford. This makes the home buying process easier because it allows you to know exactly what houses are in your price range.

Selecting the right loan product for you is very important in the mortgage process. You may be choosing between a fixed or adjustable-rate mortgage, and you may consider government mortgage loan programs like FHA, VA, or USDA. We have a variety of loan products to meet your needs.

Please click here to learn more about the Home Loans we offer.

Our Licensed Mortgage Loan Originators can help you establish a down payment strategy. The average amount that a buyer puts down on a house is 20% of the purchase price, but the percentage can go down to 0% depending on the loan program. Sometimes putting more money down can help you get a lower interest rate and lower monthly payment. Our Licensed Loan Originators can help you find a down-payment approach that works the best for you and your financial situation so you can get the best mortgage loan term possible.

Click here to use one of our mortgage calculators.

Finding the right Realtor® can be as important as finding the right lender! Realtors® are knowledgeable professionals with up-to-date information on what is happening in the marketplace. A Realtor® can assist you in your home search, negotiations, property evaluations, and guide you through the closing process.

We have a network of preferred Realtors® who we personally recommend for you to use. Please click here to choose a Realtor® in your area!

If you have a question at anytime, please email us at or call us at: (888) 233-0092.

Home Loans For Every Need

Buying a Home Loan ProductsNFM Lending offers a variety of mortgage loan products for our consumer’s needs. We specialize in residential purchase loans, as well as refinancing, home improvement, and government loan options.

NFM Lending’s Licensed Mortgage Loan Originators will work closely with you to help guide you through the loan process—making sure you have everything you need to make an informed decision, and to meet your short and long-term financial goals.

Below are some of the mortgage loan programs we offer. Please click here to learn more about each program, and about other programs we offer.

A conventional, or conforming mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. The loan may have either a fixed or adjustable rate. Fixed-rate mortgages have a set interest rate for the entire length of the mortgage term. An adjustable-rate mortgage (ARM) is usually initially fixed for a set period of time, followed by periodic adjustments according to a specific benchmark.

NFM Lending is an FHA Full Eagle Lender, which allows us to underwrite government loans. FHA mortgages are loans that are insured by the Federal Housing Administration (FHA). Popular among first-time homebuyers, FHA loans are designed for low-to-moderate income consumers. FHA loans typically have a more relaxed credit requirement than conforming loans. There is also a down payment requirement as little as 3.5% available with FHA loans. These loans can only be made for a consumer’s primary residence. FHA allows for “cash-out” refinances up to 85% of a home’s value.

NFM Lending is a Veterans Affairs (VA) approved lender. VA loans are guaranteed by the United States Department of Veterans Affairs. These loans offer long-term financing to eligible American veterans. VA loans often do not require a down payment and offer up to 100% on the purchase or refinance (rate and term only) of a home. VA also offers “cash out” loans up to 100% of a home’s value.

NFM Lending is a United States Department of Agriculture approved lender. USDA loans are guaranteed by the United States Department of Agriculture (USDA). These loans (also known as Rural Development loans) are designed to help low-to-moderate income consumers purchase homes in rural areas. Similar to VA loans, USDA loans often do not require a down payment and provide up to 100% financing for a home purchase or refinance (rate and term only if existing home is insured by USDA). USDA does not allow for cash out loans.

HomePath loans are available for consumers who are purchasing homes owned or approved by Fannie Mae. These loans offer many benefits such as a low down payment, flexible mortgage terms, flexible credit guidelines, and no mortgage insurance requirement.

Home Improvement loans are used to fund renovations and repairs made on homes. These loans can be made on a consumer’s primary residence, second home, or investment property, without the need of a second mortgage. The LTV is based on the after completion value of the home.

NFM’s 6 Step Loan Process

Buying a Home Loan process

NFM Lending has an easy 6-step loan process. Your Mortgage Loan Originator will help guide you through the entire process, starting with helping you get pre-qualified before your home search. From there, we will help you through every step until your loan is finalized and you are receiving the keys to your new home!

Once you are ready to begin the mortgage loan process, fill out a short online pre-qualification request and one of our Licensed Mortgage Loan Originators will contact you, and help you start the process.

Apply online to get pre-qualified. After getting pre-qualified, you will know what your purchasing power is and you can begin searching for your dream home.

Work with a Realtor® to find the home of your dreams. They are knowledgeable and have housing-market insights that can be more beneficial than doing the search on your own. If you need help finding a Realtor®, click here to search for Realtors® in your area.

Talk to your Mortgage Loan Originator about your current and future financial goals, and they will work with you to figure out what mortgage loan is right for you. Click here to see a full list of the mortgage loans offered by NFM Lending.

To apply, you must submit the names, social security numbers, and the monthly income of all applicants, the subject property address, and the estimated value of the property being purchased. During the application process, the amount of the loan and the down payment are determined by you. At this point, we will determine if you are eligible for the loan you seek.

Below is a list of all the documents that will be requested by your Mortgage Loan Originator for review:

  • Proof of employment (written verification documenting a full two years of work)
  • Proof of income (pay stubs for the past 30–60 days)
  • Proof of income from another source (if applicable, applicant must submit three years’ documentation of social security, disability, pension income, alimony, or child support)
  • W-2 forms and tax returns from the past two years
  • All current mortgage information (if applicable)
  • Bank information (account numbers, branch address, and bank statements from the past 2–3 years)
  • Information about purchase contract(if completed), real estate certification, amendatory clause or deposit, and proof of rent/payment history on past or present mortgages)

After you submit all of the documents, your Mortgage Loan Originator submits them to Processing. The Loan Processor puts all these items together, orders a title search, helps schedule an appraiser to determine the value of the property, and then sends the application to Underwriting.

In the Underwriting process, the lender determines the degree of risk involved with lending the consumer money. Here are the “Four C’s” that are evaluated in Underwriting:

  • Credit: A credit report is obtained from each of the three credit bureaus—Equifax, TransUnion, and Experian. These reports are analyzed to determine how well a consumer manages debt.
  • Capacity: Capacity is a consumer’s ability to make payments on the loan. The consumer’s employment and income is evaluated along with their current debt and assets (debt-to-income ratio).
  • Collateral: When looking at collateral, the lender evaluates the type of property, value of the property, and cost. To determine the value of a piece of property, an appraiser is sent to analyze various factors.
  • Capital: You need money to purchase your home.

Once the Underwriter grants approval, a clear-to-close is processed and the settlement date can be scheduled.

The closing on a loan is where all the necessary paperwork is presented and signed by both the sellers and the buyers. For most transactions three business days prior to closing, you will receive a Closing Disclosure (CD). The CD will contain all of your closing costs and factor in any down payments, credits or gift funds providing on the loan transaction. At closing, the title of the property is transferred to the buyer, an escrow account is set up, the amortization schedule is issued, funds are obtained by the buyer, and the security interest of the lender has been recorded by the County or City Clerk.

Once a loan is closed, it splits onto two different paths: the lender’s path and the consumer’s path.

On the lending side, a mortgage loan can either remain in a lender’s portfolio or enter the secondary market. In the secondary market, loans are sold by lending institutions to private and public investors such as Fannie Mae and Freddie Mac to be sold as mortgage backed securities. The secondary market allows lenders to replenish cash reserves so that they can originate more mortgages to consumers.

On the consumer’s side, the consumer makes payments on the loan following an amortization schedule. By refinancing, taking out a Home Equity Loan or Line of Credit, the loan can be modified at a later date depending on the consumer’s future financial needs.

Get Pre-Qualified Today

Buying a Home Loan processIf you’re looking to purchase a home, the first thing you should do is get pre-qualified. A pre-qualification can help you have a stress free purchase transaction by letting you know how much home you can afford, and by letting Realtors® and sellers know that you have secured financing.

What is a pre-qualification?

A pre-qualification is a preliminary determination on whether the prospective loan applicant would likely qualify for credit under an institution’s standards and the amount of credit for which the prospective applicant would likely qualify.

What is the pre-qualification process?

Before taking a formal application, the prospective borrower will need to submit a Pre-qualification request form, or provide the following information to the Mortgage Loan Originator:

  • Borrowers’ social security numbers
  • Borrowers’ dates of birth
  • Borrowers’ email addresses
  • Borrowers’ phone numbers
  • Current address
  • Previous address if in current residence for less than two years
  • Employer name and address
  • Previous employer name and address if at current job for less than two years
  • Gross income amount
  • Asset information (value of banking, investment, retirement, etc.)
  • Current expenses (housing, credit card and loan payments, etc.)
  • Current obligations
  • Current market value of primary residence, if it is owned by borrower

Get Pre-Qualified Today!

If you are ready to start the mortgage loan process, gather the above mentioned items to help your Mortgage Loan Originator secure a pre-qualification. Please note that depending on your situation other documents may be needed.

Click here to get pre-qualified today!

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