Mortgage Options that Match Your Financial Needs
Each homebuyer’s journey is different, but everyone strives to find the lowest mortgage rates when buying their new home. Sunrise Banks’ conventional mortgage loans include fixed-rate and adjustable-rate options for Minnesota homebuyers.
Mortgage Purchase Special
From February 12 – June 30, 2024, get $500 off of closing costs on your conventional mortgage loan!1
Fixed-Rate Mortgages
With the fixed-rate mortgage option, your interest rates and monthly payments remain the same throughout the lifespan of your loan.
Benefits Include:
- Predictable monthly principal and interest payments
- Protection from rising interest rates
Things to Consider:
- Overall interest payments will be higher on longer-term loans than shorter-term loans
- Principal payments on shorter-term loans are usually higher than longer-term loans
Adjustable-Rate Mortgages (ARM)
With the adjustable-rate option, monthly payments are structured to remain the same for an initial, predetermined period of five or seven years. After this period, the rates adjust semiannually. These loans include an interest rate cap.
Benefits Include:
- Typically have a lower initial interest rate than fixed mortgages
- The interest rate cap limits the maximum amount your payments can increase during the lifespan of the loan
- Provide flexibility for those expecting future income growth or borrowers who are likely to move or refinance within a few years of their purchase
- Up to $1.2 million
Things to Consider:
- Monthly payments can increase when the interest rate adjusts
- Monthly payments can change every six months after the initial fixed payment period
Not sure if a Conventional Mortgage is right for you?
Frequently Asked Questions
Step 1: Inquiry
- Connect with one of our mortgage loan experts to start the process. You can find us online, send an email, or call us. Our loan officers are all listed on the mortgage website. When you work with Sunrise Banks, you will have a dedicated loan officer throughout the mortgage loan process.
Step 2: Pre-Approval
- Our mortgage team will work with you on how to complete an application to start the process.
- Your credit report will be obtained and the mortgage lender will ask about your income and assets.
- Your mortgage lender will review your information to help you find a price range for your home search and give direction on down payment cost and options.
- At this time, your mortgage lender will explain which types of mortgage loans you qualify for to help you determine which loan option is best for your personal situation.
- Once you are pre-qualified, we will provide you with a pre-approval letter to include with any purchase offers you make while shopping for a home.
Step 3: Find Your Dream Home and Make An Offer
- Now is the time to explore homes and put in an offer based on your pre-approval loan amount.
- Work with your real estate agent to find homes that fit your criteria.
- Make an offer!
- Once your offer is accepted it is time to sign a purchase agreement.
Step 4: Application and Loan Processing
- With your purchase agreement in place, your mortgage team will provide you with disclosures regarding the mortgage process and costs associated with the mortgage loan. If everything is acceptable to you, you’ll tell your mortgage lender that you want to proceed with the loan.
- If loan verification documents have not already been collected by the mortgage lender, the processing team will reach out to introduce themselves and gather more documentation needed to complete the loan.
- Documents that they will need include those pertaining to your identification, income, assets, and credit history. Bank account statements, paystubs, W-2s, tax returns, etc. are general documents needed to verify this information.
- You will also need to find and secure Homeowners Insurance for your new home and provide us with this information.
Step 5: Home Appraisal
- A standard appraisal of the house is required from Sunrise Banks before moving forward with the loan. An appraisal will determine the market value of the home.
- Sunrise will order the appraisal.
- Note that appraisals may take time to be completed (approximately two to three weeks).
- Additionally at this time your mortgage processor will also order;
- Title Search
- Verification of Employment
- Flood Certification
- Verification of Rent
Step 6: Rate Lock
- Your mortgage lender will work with you to ensure that throughout the loan process you are keeping in touch to determine the best time for you to “lock” the interest rate on your loan.
Step 7: Loan Underwriting
- During the previous loan processing steps, your mortgage team compiles all the necessary documents required for an underwriter to review and verify to make a formal loan decision.
- The Underwriter may approve a loan as is or require additional information before issuing a final decision.
- Your mortgage lender will provide periodic updates on your loan status.
- Once underwriting is complete, you may be conditionally approved for your loan (which can take up to 72 hours).
Step 8: Closing Preparation
- Your loan has officially been approved!
- You will be provided with a Closing Disclosure a few days before your scheduled closing date. This outlines the final terms and costs of your mortgage.
- The mortgage title company will confirm what you should bring to your upcoming closing date. Some general items needed may include:
- Cashiers Check for required funds.
- Government issued ID for all parties.
- The mortgage title company will confirm what you should bring to your upcoming closing date. Some general items needed may include:
Step 9: Closing Day
- Congratulations! You have made it to Closing Day!
- During closing, you’ll pay for the down payment and closing costs. You will sign all legally binding documents such as a promissory note and mortgage or deed of trust. You will be handed the keys to your new home! Welcome home!
- While the first few steps of the process are varied, including the time to find a home, a loan closing takes about 30-45 days from the accepted offer on the house.
Your resource for starting your homebuying process
Mortgage Calculator
See what mortgage you can afford based on your preferred payments, loan term, and interest rate.
Guide to Buying a Home
Check out this helpful guide to define your homebuying goals and plan for your mortgage loan.
Mortgage Application Checklist
An important step toward homebuying is gathering the right documentation for your loan application.
Sunrise Success Stories
“I had a really good experience with my loan officer and I’ve recommended her to two others! I like that Sunrise won’t sell my loan.”
“Process went smooth and according to schedule in this very crazy time.”
“There is a personal touch and also quick to get a response.”
Why people love working with Sunrise
On top of our premium service, we have a purpose-driven mission. We believe in building strong Minnesota communities with socially responsible and sustainable banking services and products. Sunrise Banks is a proud Certified B Corporation, a designated Community Development Financial Institution, and a member of the Global Alliance for Banking on Values.
Other differentiators:
- Our loan officers are bilingual in English and Spanish.
- We work with you to build credit, if needed, through our Credit Builder program.
- Your loan stays in our books and won’t go to another lender after you close on your home.
- There are no surprises along the way with our transparent process and regular check-ins with your dedicated loan officer.
Start the Process Today!
- $500 off Closing Costs offer is valid for applications submitted for Conventional first lien purchase money transactions. This offer excludes FHA and VA loans and Home Equity Lines of Credit transactions. The $500 off Closing Costs will be applied at the time of loan closing as a Lender Credit. Loan applications must be submitted by June 30, 2024. Loan must close within 120 days of application date. All loans and lines of credit are subject to credit approval and compliance with underwriting standards.