Things to Consider When Applying for a Home Loan

It's house-hunting season! SSB Bank offers loans and refinancing to make sure our neighbors can make themselves at home in Pittsburgh.

When you're getting ready to move, cost is one of the top things on your mind. What can you afford? How will financing work? Will you get approved for the loan you want? Here are some of our tips to boost your confidence when applying for a mortgage.

Don't be late on bill payments.

Credit card bills, utility bills, existing loans... it's vital that you don't miss a payment! Missing a payment may lower your credit score, which is one of the top things we (or any bank) will consider. Your credit score can determine if you're approved, as well as what your loan rates and terms are.

If your credit is less than stellar, start rebuilding it as soon as possible. Don't miss another payment, or talk to your creditors about making minimum payments.

Not sure where your credit stands? We've outlined how you can get your credit score for free!

Consider your work history.

Banks prefer to see a 2 year work history in the same line of work. It's an indicator that you'll be able to continue paying back the loan at the same rate. Each lender looks for different things, but most lenders will consider a two-year history, which includes consideration of education and military experience.

Hold off on opening or closing accounts.

Opening and closing accounts (including credit cards and bank accounts) both show up on your credit report. Either would impact your credit age, credit utilization ratio, and credit score. Lenders look for stability (and continued improvement) in these areas, so opening or closing accounts within a few months of your application could be seen as a negative mark.

Arm yourself with knowledge.

While our experts will make recommendations, it's important for you to understand your options. Study up on the basics of fixed-rate, adjustable rate, FHA and VA home loans.

And again, know and understand your credit score. That way you can take steps to shore it up if necessary, or know how it will impact your rates and terms.

Get a sense of what you can afford.

The equation for determining what you can afford involves a couple of different pieces. Here are the variables: the purchase price of the house, how much you want to put down, how much the loan would be, mortgage term and the mortgage rate/APR.

The solution of the equation is how much you'll be paying per month.

Try some different scenarios in our mortgage calculator. Also take a long, hard look at your budget (especially if you will be buying a house with your partner) to see what would feel comfortable, and what would be beyond your limits. Keep in mind that the house itself isn't your only expense: you'll also need to consider taxes, insurance, HOA fees, improvements to the house, and the cost of your move.

Get prequalified.

Consider this part of the research phase. You'll submit an application with information about your financial status (income, debt, assets, work history) and we will give you an idea of the type and size of mortgage for which you may qualify. Because this is based only on information you provide and doesn't involve pulling your credit report, pre-qualification is not a guarantee of the sum we would be able to offer you! We recommend that you wait until you've committed to your loan before doing serious house hunting so you don't fall in love with a property that is outside of your loan range.

Note: Some lenders require both prequalification and a pre-approval. SSB does not have a written pre-approval program, which helps streamline your process!


While every homebuying situation is different, these points can help make the process faster, easier, and more enjoyable for you!

As members of the Pittsburgh community ourselves, we are happy to help you become our neighbors! Whether you're financing your first house, an investment property, or the home of your dreams, our goal is to get you financed as quickly and as easily as possible. Working with SSB to get your mortgage gives you many advantages:

Low origination fees

Competitive interest rates

Personal, hands-on guidance throughout the process

Quick, local decision-making

Direct in-person service, whether you call or come into our branch

For more information, contact Heather Dieckmann, Mortgage Loan Originator at (412) 837-6955.