How the Mortgage Loan Process Works

Make no mistake, there's a lot to do in oder to get a mortgage loan. You wouldn't be here on our site if it were possible to complete a simple loan app and receive an excellent loan funded the same day. We do most of the heavy lifting for you, so you can concentrate on what's important — preparing to move into your new home or saving money.

There are four main steps involved in obtaining a loan.

Step one: Decide how much you can afford

This is a function of a couple things. How much of a monthly payment can you afford? What is the maximum you can borrow from a lender, given your income and credit history? You can get a good idea of your preferred payment abount using the calculators on our website. And we can guide you to the right loan amount and best program for you when you answer a few quewstions. Because lender guidelines are fairly standard, we can give you a good idea of how much you can borrow after a short conversation.

Step two: complete a pre-qualification

This is where the rubber meets the road and you save the most money. You will give us details on your employment, assets, and residence history. You'll provide information on your employment, asset, and residence history. We will get your credit report and score (only after you give your permission. After we've finished reviewing this information, we'll give you a pre-qualificaiton letter. Your agent will likely use the pre-qual (as they may call it) to make the best offer on the home you choose. While you're looking for a new house with your real estate agent, we find the best program for you.

Step three: apply for your loan

After you've made an offer and the sellers accept it, you should apply for the loan. Applying for your loan couldn't be much easier; you can apply right here on our site. After the seller has accepted your offer and you have submitted your loan application, we'll order a professional appraisal on the home.

Step four: your loan is funded

The agents will find an escrow/title company to handle the "funding" of the loan and closing of the sale. We'll coordinate with this company to make sure the papers your lender will need are avaiailable, and you'll probably}likely sign everything at this company's officeWe work with with the title company to set your closing date. Because you will not have to worry about these details, you get to think about the move, if you're going to repaint, new carpet, and the details involved in moving into a new home.

You've answered a few questions, provided lots of information, applied , and Before you know it, you're moving in! We take care of the loan details so you can focus on finding the new home that's right for you.

Have questions about the loan process? Call Alerus Mortgage at 952 417 8481. We answer questions about the loan process every day.

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