Throughout the real estate buying process, whether first time home buyers or accomplished commercial property buyers, one of the most critical decisions is choosing which financial institution to finance your home.
There are a variety of different loan programs to choose from (think home mortgage jumbo loans or commercial loans) and there are a vast number of lenders eager for you to open a new mortgage loan with their company.
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 an FDIC backed 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. However, they offer several types of banking services including:
- Savings Accounts
- Checking Accounts, some with no minimum balance fees
- Money Market Accounts
- Commercial Loans
- Mortgage Loans
NASB also offers a mobile app and online banking, keeping up to date with other banking competitions.
In fact, their debit card works with Apple Pay, Google Pay, and Samsung Pay when making purchases using your mobile phone.
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 through an online application, via phone, or in-person loan application at your nearest NASB branch.
From there, a loan officer will contact you to start finalizing the terms of your new NASB account mortgage rates and therefore mortgage payment.
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.
They are competitive with other loan companies like Quicken Loans, and have competitive rates, all depending on your loan amount and credit score.
Here are a few of the most popular loans that they offer:
- HELOC/Home Equity
- IRA Non-Recourse Loans for Investment Properties
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.
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.
NASB Mortgage Fees
North American Savings Bank does not 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.
These fees should include the appraisal fee, title company charges, closing fees, and state taxes.
They also charge credit card and debit card payment fees at $44.55 per payment. Be sure to speak with your loan officer concerning the details of your fees.
Pros and Cons
- VA Loans: 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.
- Non-Traditional Income Sources Considered: 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.
- Good Neighbor Program: 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.
- Solid Reputation: NASB has a solid reputation, and you can always check in with your loan officer at any point during the loan process.
- No Online System: 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.
- Higher Rates on IRA Non-Recourse Loans: Their IRA Non-Recourse Loans for investment properties come with higher interest rates and a hefty 30% down payment.
NASB Contact Information
North American Savings Bank contact information is the following:
- Address: 12498 S 71 Highway Grandview, MO 64030
- Phone number: 816-943-8000
- Website: www.NASB.com
- NMLS ID# 400039
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.