Throughout the home-buying process, one of the most critical decisions is choosing a mortgage to finance your home.
There are a variety of different loans to choose from, and there is a vast number of lenders from which you can take out your mortgage.
Let’s take a closer look at North American Savings Bank and see what kind of experience you can expect to have when shopping for a mortgage there.
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Overview of North American Savings Bank
Located in Missouri, North American Savings Bank is a national bank and mortgage lender that offers mortgages to a broad range of borrowers.
Specifically, it gears its services towards active U.S. military members and U.S. veterans.
Most of their mortgages are processed through the Department of Veterans Affairs, but they also offer several other typical home loans that you would expect to get from any bank.
You can begin your mortgage application process either online, via phone, or in-person at your nearest NASB branch. From there, a loan officer will contact you to start finalizing the terms of your mortgage.
NASB also considers non-traditional income sources, so applicants that have a low credit score are more likely to get approved when applying for a mortgage here.
NASB Mortgage Options
Whether you plan on taking out an entirely new mortgage or you want to refinance your existing mortgage, North American Savings Bank has a few different financing options to meet the needs of its customers.
Here are a few of the most popular loans that they offer:
These are loans that are not backed by the government. They tend to have higher interest rates than their government-backed counterparts. Still, it may be possible that a conventional loan is the type of mortgage that is best suited to your needs.
If you take out a loan from any government entity, then that’s known as a government-backed loan. One of the most common government loans is an FHA (Federal Housing Association) loan. NASB provides customers with a variety of government-backed loans.
Be aware that if you take out an FHA loan, the Federal Housing Administration is not the one that will provide the credit. The money is given to you by an individual FHA-approved institution like NASB, and the FHA merely serves to back the loan.
VA loans are one of the most popular loans that NASB offers, and they provide favorable borrowing terms for active members of the military, veterans, and widowed spouses of veterans.
To confirm your eligibility for a VA loan, visit the Department of Veteran Affairs website.
One of the easiest and simplest ways to improve your mortgage’s repayment terms is by refinancing.
While this option may not be for everybody, it allows many borrowers to enjoy lower monthly payments, a lower interest rate, and payment terms, which are overall more favorable than those of the original mortgage.
A cash-out refinance loan differs from a standard mortgage refinance in one significant way: the balance on the new mortgage that you receive through this process is higher than the amount of your home payment. The logic here is that with the remaining money you have after making your home payment, you can fund other aspects of your life.
Many borrowers who opt for a cash-out refinance to use the money for home improvements. Be aware that with this type of refinancing, you’ll need to borrow the new mortgage against home’s equity.
NASB Mortgage Qualifications
NASB differs from other lenders in their loan qualification process. Rather than merely looking at your credit score, they also consider your financial history based on other indicators, such as your bill and rent payment history.
Though their standard minimum credit score is 620, there are specific loans they offer that will accept even lower scores. Their Good Neighbor Program, for example, only requires a credit score of 580. That way, moderate-income and low-income borrowers have a chance to get a mortgage at NASB.
Naturally, the qualification standards and assistance that NASB offers vary depending on the loan. For example, they don’t charge a fee to lock in your loan rate. NASB does, however, charge an origination fee of $995 on all its loans except for VA loans.
Overall, NASB offers mortgage qualification requirements that are forgiving when compared to other lenders. If you are a military borrower with low-to-moderate income, this would be a great lender to consider.
Pros and Cons of North American Savings Bank
One advantage that NASB customers agree on is that this bank is big on serving military families through VA loans. They make an effort to thank veterans and active military members by helping them to find the most favorable mortgage borrowing terms. While other banks and institutions also offer VA loans, NASB stands out in this regard.
In addition to honoring those who have served, NASB also takes non-traditional income sources into account when customers apply for a loan. Examples of this include your payment histories for rent, utilities, insurance, and mobile phone bills. Many lenders are quick to judge you based on your credit score alone, but NASB works to give its clients alternate routes to finding a great mortgage.
If that weren’t enough, NASB also helps low-income customers through their Good Neighbor Program. This initiative is designed to help people buy properties in Kansas City, Missouri, even if their credit score and financial history are less-than-perfect. The program works by requesting a minimum credit score of 580, waiving any lender fees that would typically be required, and helping borrowers along with paying for closing costs.
The only downside we see from NASB bank is that it doesn’t offer an online system for tracking your loan process. While this may be unnerving to some, some borrowers don’t care to use such systems.
In any case, NASB has a solid reputation, and you can always check in with your loan officer at any point during the loan process.
Is North American Savings Bank for You?
Due to their excellent reputation, flexible qualification standards, and a variety of mortgage offerings, you can’t go wrong with NASB.