Prequalify Online
Are you interested in purchasing a home, but don't have the right one located yet? We suggest that you complete our Prequalification application to assist in determining the best home to fit you. It's free, easy and can be requested from the comfort of your home. Prequalify Now! (secure)
Have you located your new home or wish to refinance your existing mortgage? Prequalify Now!. (secure)
|
Q: What is the difference between applying and prequalifying for a mortgage?
A:
Applying for a Mortgage: You should apply for a mortgage when you have a house that you have found and are certain you want to begin the mortgage process. By completing our online application, you will be giving us the information that we need to begin analyzing your financial situation and begin the loan process. Our online application allows you the option to begin the process to refinance your existing home.
Prequalifying for a Mortgage: You should prequalify for a mortgage when you are thinking about purchasing a home, but don't have one picked out. When you prequalify, our mortgage specialists can give you an idea of closing costs, mortgage amount, and lay out your financing options. You can provide this information to your realtor, which can make looking for a house much easier.
|
Q: What monthly mortgage payment and loan amount can I qualify for?
A:
Your choice of mortgage lender can make a big difference in the payment and loan amount you can qualify for. Some mortgage lenders follow guidelines that require your mortgage payment and your total debt payments to be a standard percentage of your gross monthly income. The traditional guidelines they follow may require that you can afford a mortgage payment of approximately 28% of your monthly gross income. This includes principal, interest, real estate taxes and insurance. They may apply a second guideline and require that your mortgage payment, plus other monthly debt payments not exceed 36% of your gross monthly income.
At First Dakota, we look at your family financial profile on a case-to-case basis. The mortgage payment and loan amount you can qualify for will be determined by a review of several factors. We will discuss your credit rating, assets, income and current housing expense. The loan amount you qualify for will not be determined simply by some “payment ratio standards”. If you would like to determine the payment and loan amount that may be approved for you, consider completing our Online Home Loan Application. (secure)
|
Q: How much will I need to invest for the down payment and closing costs?
A:
Many different types of mortgage programs are available. Several are designed to assist you with no or relatively small down payments, while other programs work better when larger down payments are available. The programs that best suit your individual needs can be better determined if you take the time to carefully complete our Online Home Loan Application. (secure)
|
Q: When will my monthly payments be due?
A:
Your monthly payments are due on the first day of each month. A grace period is typically provided with most loans that will allow you from 10 to 15 days in which to make your payment and avoid a late fee.
|
Q: What is an escrow account?
A:
Escrow is the portion of your monthly payment collected to pay your future real estate taxes, insurance premiums and other escrow items as they come due. Escrow accounts are required on some loan programs and optional on others.
|
Q: Can I prepay on my home loan?
A:
All of the home loans we currently offer allow prepayment of principal (sometimes called curtailment) without penalty. Prepaying principal will reduce the term of your loan and can save money paid in interest.
|
Q: What is property insurance?
A:
Property insurance is required on all loans. This insurance protects against damage caused by fire, windstorm and other natural hazards. You are responsible for maintaining continuous coverage on your property and for payment of the first year’s premium, after which your lender pays the annual premiums from your escrow account. Your loan requires insurance for the amount of your loan. We recommend you consult an insurance agent to ensure you are fully protecting your property investment.
|
Q: Do I need flood insurance?
A:
Flood insurance is required for all properties identified as in a flood zone.
|
Q: What is mortgage insurance?
A:
Some conventional loans and all government-sponsored loans require mortgage insurance. Mortgage insurance has no relation to life or disability insurance, rather, it protects the lender only from loss if you should default in repaying your loan. Lenders use mortgage insurance together with no or low down-payment programs.
|
