Your Application

Applying for a mortgage loan before finding a home is a good idea! Norry Bank can typically issue a pre-approval letter within 24 hours, which can be used to show that you are a qualified buyer. Once you’ve found your future home, call your Loan Officer to complete the application and discuss locking in your interest rate.

Your credit score is one of the items we review when evaluating your application. A credit score is based on information collected by credit bureaus, detailing the balances you owe and the timing of your payments. Historically, credit scores have been a way to measure credit worthiness because they compare one person’s credit history with millions of other consumers.

Credit scores are dictated by actions like your payment history, open lines of credit, and the number of recent inquires made about your credit history. The higher your score, the better you’ll be viewed by potential lenders because you’ve demonstrated your ability to pay back borrowed money in the past.

Too many credit inquiries in a short window can affect your credit score, but there’s no reason to worry. Data used to calculate credit scores does not include mortgage or auto loan credit inquiries made within the 30 days prior to the score’s calculation. Plus, mortgage inquiries made in any 14-day period count as one inquiry. You don’t have to limit your mortgage shopping out of fear that it will hurt your credit.

There is no charge for Norry Bank to access your credit information (which we will do only with your permission). You will be charged for a credit report only if you decide to complete an application after being approved for a loan.

Norry Bank uses an automated underwriting system that makes the process simple and easy for you. Our system compares your financial details with those of millions of others to determine what documentation is needed. In some cases, a W-2 or pay stub is all that you have to provide.

Obtaining a mortgage loan as a self-employed person can be a challenge with some banks, but Norry Bank is happy to help. We require two years of tax returns and a year-to-date profit and loss sheet to assess eligibility for a loan.

Supplemental income like bonuses, overtime pay, and commissions will only be considered if you have a history of receiving it, and it is likely to continue. To verify that information, we can review the past two copies of W-2 statements and recent pay stubs. Homebuyers with commission as a significant part of their income will need to provide copies of recent tax returns to verify any business-related expenses.

We’ll ask that you provide copies of recent pension check stubs, or bank statements if your pension or retirement income goes directly into your bank account. In some cases, we’ll need to verify that the income is scheduled to continue for at least three years, but that can be accomplished with an award letter or by our Loan Officer contacting the source of the income directly.

Norry Bank can typically only consider income reported on your tax return when evaluating eligibility for a mortgage loan. However, income that is legally not taxed and isn’t required to be reported will be considered.

To verify your income from rental properties you own, we’ll ask for the most recent year’s federal tax return. We review Schedule E of the tax return to verify rental income after all expenses besides depreciation. If you have not owned the property for a complete tax year, we can review executed leases while estimating ownership expenses.

Two years of personal tax returns are typically required for dividend and/or interest income to be considered. We require two years to establish a multi-year average. Additionally, we will verify your ownership of the assets. Income from dividends and/or interest must be expected to continue for at least three years to be considered.

You would only need to provide child support, alimony, or separate maintenance income if it was being used for repayment of the loan. If you are receiving a PA Housing Finance Agency (PHFA) First-Time Homebuyer Loan, Norry Bank will need to review what you’re receiving to ensure you don’t exceed income limits. If you are paying child support or alimony, we need to know so it can be included in the debt-ratio calculation.

Income from a second job is considered if we can verify secondary employment for at least one year.

Changing employers frequently will not affect your ability to get a new mortgage loan, especially if there are no lapses of time between jobs. Homebuyers paid on a commission basis should contact their Loan Officer, as predicting earnings without a history at that employer can be challenging.

Any applicants who were in school before their current job should enter the name of the school they attended and the length of time in the “length of employment” fields. Enter a position of “student” and income of “0.”

We use the lower of the appraised value or the sales price to determine your down payment. However, Rural Housing Service loans allow homebuyers to roll their closing costs into the mortgage if the home appraises at a higher rate. Ask your Loan Officer for more details.

If the gift giver is a relative or co-borrower, gifts are an acceptable source of down payment. Depending on the program, we may need to verify that you have at least 5% of the property’s value in your own assets if the loan request is for more than 80% of the purchase price. Rural Housing Service loans have no restrictions on how much of the assets come from you, while Pennsylvania Housing Finance Agency requires only 1% (minimum of $1,000).

When selling your current home to purchase the new home, we ask that you provide your settlement or closing statement to verify the mortgage has been paid in full and that sufficient funds are available for closing on the home you are purchasing. If the closing of your current home is scheduled for the same day of your new home, the settlement statement should be brought to your new mortgage closing.

If you are working for the same employer, just complete the application with the income you anticipate at the new location. For a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. Our Loan Officer will finalize the details after your loan has been submitted.

Co-signed debt can impact your qualification for a mortgage, but if you can verify that the other person responsible for the debt has made the required payments, we can ignore the monthly payment of that debt. For verification, you’ll need to produce cancelled checks from the main borrower for the last 12 months.

Student loans set to go into repayment within the next six months should be included. If you aren’t sure what the payment will be, please enter an estimated amount.

Past bankruptcy or foreclosures may affect your qualification for a mortgage. We generally review the amount of time that has passed since the bankruptcy or foreclosure, as well as the circumstances and status of the bankruptcy. You should also have already re-established an acceptable credit history through new loans or credit cards.

Installment debt is a loan, such as an auto or student loan, in which you make regular payments. Only installment debt that has more than 10 months remaining will be considered. Payments on other living expenses, including insurance and medical bills, are not considered installment debt.