Frequently Asked Questions
1. How do I start the application process?
You have two options:
- You can call me to schedule a meeting to discuss your needs and the options available to you. I will let you know what documents to bring to our consultation. After reviewing the information, we will determine the best choice for you.
- Most Common: You can apply online, using the secure loan application located in the “Apply Now” section of this site. Upon completion, the application is forwarded directly to me. I will call you to confirm I’ve received it and to answer any questions you may have.
2. How long is the process?
That depends on the type of transaction. Because my team is local, the process tends to move quickly. After you apply, refinance transactions take roughly two weeks. Purchase transactions are based on the terms of the agreement. Generally, they also take about two weeks depending on any contingencies in the contract.
The approval process is 24 hours upon receipt of your information.
3. What can I expect during the loan process?
You can expect regular communication from me — daily if needed — to keep you up to date and help ensure the process goes smoothly. Also, to help purchase transactions stay on target, I will contact realtors, builders and any relevant third parties to ensure they are aware of our timeline.
4. When should I consider refinancing?
You should consider refinancing if it enables you to:
- Lower your interest rate and payment, thus increasing your cash flow. We can evaluate how long you plan to live in the house to determine what rate will enable you to recoup the closing costs and derive the benefits of a lower monthly payment.
- Pay for emergency expenses or other needs. This involves taking out a higher mortgage amount than your current loan. The new mortgage is used to pay off the previous mortgage, cover your closing costs and meet your additional needs.
- Meet additional needs. If you have other goals, such as improving your home, eliminating mortgage insurance or paying for your child’s college education, there may be additional opportunities for you to consider when refinancing.
For help determining whether refinancing would benefit you, please call me for a free consultation to discuss your situation, goals and objectives.
5. Should I ask for a loan summary worksheet?
Yes. There are fees that vary from lender to lender. It’s most important to compare the lender’s origination, application, appraisal, commitment and/or underwriting fees.
Other fees, such as title charges for mortgage registration tax (MRT) and title insurance are based on specific tables and tend not to vary much in comparison.
Also, pre-paid charges (which are often mistakenly confused for extra changes) don’t tend to vary either. These include the amount of your property taxes, insurance and accrued interest on your new loan before your first payment is due.
Please note that Alerus Mortgage provides you with a Closing Cost Guarantee Certificate that guarantees the total closing costs in the final Good Faith Estimate so that there aren’t any surprises during the closing of your loan.