Find Answers to Your Mortgage Questions
Browse some of the most common questions we hear from customers when they are applying for a mortgage through First Dakota National Bank.
Don’t see your question? Contact us, and we’ll be happy to answer it directly.
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 home mortgage bankers can give you an idea of closing costs, mortgage amount, and lay out your financing options. You can provide this information to your realtor to have on file, which can make looking for a house much easier.
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. They may apply a second guideline and require that your mortgage payment, plus other monthly debt payments not exceed a percentage of your gross monthly income.
At First Dakota National Bank, 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 “payment ratio standards”. If you would like to determine the payment and loan amount that may be approved for you, consider completing our online prequalification application.
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 complete our online prequalification application.
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.
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.
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.
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.
A: Flood insurance is required for all properties identified as in a flood zone.
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.
Are you interested in purchasing a home or refinancing your current home? Complete our free, online prequalification application to assist in determining the best mortgage to fit you. It's free, easy, and can be requested from the comfort of your home. Prequalify Now!
Want to talk to us about mortgages? Our experienced home mortgage bankers offer personal assistance in financing or refinancing.