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.
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.
Step 2: Pre-Approval
- Our mortgage team will send you an electronic pre-approval application.
- This step counts towards your credit score as a credit inquiry.
- Documents for you to complete:
– Mortgage loan application including a credit check - Sunrise Banks will send you:
– Pre-application package including the estimated closing cost, welcome letter, and a pre-approval letter
Step 3: Find Your Dream Home
- Now is the time to explore homes and put in an offer based on your pre-approval loan amount.
Step 4: Offer Accepted
- Congratulations, your offer was accepted for a home!
- Now, our mortgage team will send your electronic disclosure forms to complete (called a TRID application). You can also complete these forms with your loan officer.
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 charge a $450 appraisal fee.
- Note that appraisals may take time (approximately two to three weeks).
- Documents ordered by your Sunrise Banks’ Processor:
– Title order
– Verification of Employment
– Flood Certification
– Verification of Rent
Step 6. Loan Processing
- Once the appraisal is in progress or scheduled, the processing team will reach out to introduce themselves and gather more documentation needed to complete the loan.
- Documents to gather:
– Gift of Equity (if applicable)
– Income Statements
– W2
– List of Assets Owned - During this time, your mortgage loan officer will also schedule your loan closing date.
Step 7: Loan Underwriting
- During the previous loan processing and underwriting steps, your mortgage team compiles all the necessary documents to close on your home loan.
- Your mortgage loan officer will provide weekly updates on your loan status.
- Once underwriting is complete, you will be conditionally approved for your loan (which can take up to 72 hours).
Step 8: Closing Preparation
- Your loan has officially been approved!
- The mortgage title company will confirm what you should bring to your upcoming closing date.
- Items needed:
– Cashiers Check for the amount needed at closing
– Customer signs Final Closing Cost Disclosure
Step 9: Closing Day
- Welcome to your new home!
- On closing day, you will sign your final loan disclosure documents.
- Your realtor will have your keys ready for your first steps through your new front door. 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.
