By Nicole Rothstein

Are you considering buying your first home but aren’t sure where to start? The steps involved in becoming a homeowner can be overwhelming, especially for someone new to the process. There's a lot of terms to learn, like amortization, equity, and escrow. There are different types of mortgage loans and varying requirements among lenders.

Buying a home can be one of the most important – and most uncertain – investments you can make. That's why prospective buyers need reliable resources to help understand their options and make sound decisions.

At Sunrise Banks, our goal is to provide you with the knowledge and confidence you need to achieve your goal of homeownership.

Sunrise Banks offers First-Time Homebuyer workshops by partnering with organizations like CLUES (Comunidades Latinos Unidas en Servicio) and NeDA (Neighborhood Development Alliance).  Together, we all want to help you succeed in the home purchasing process.

We sat down with Andrea Altamirano (left) and Rocio Gomez (right), two mortgage loan officers at Sunrise Banks. They share more about the steps to take when buying a home and what prospective homebuyers can expect when attending a workshop.

What to expect in our homebuyer workshops

The agenda for our First-Time Homebuyer Workshop contains valuable information for both new and repeat buyers. The day-long session is tailored to assist you through each stage of buying a home, as well as to help you understand the terms used and the documents required throughout the process.

Workshop attendees will hear about the variety of mortgage loan options available, including Sunrise Banks Pathway2home® ITIN Conventional Mortgage and 10/1 ARM Mortgage, HomeReady™ Mortgage, Fixed-rate Mortgage, Adjustable-rate Mortgage, Minnesota Housing Finance Agency Mortgage, FHA Mortgage, VA Mortgage, and Investment Property Mortgage.

Choosing an appropriate mortgage is a focus for our workshop. It is critical in the homebuying process because it can determine the affordability of owning your own home and your monthly payment amounts. Familiarizing yourself with the details of each loan option is vital in selecting one that meets your needs and budget.

Common concerns

A common concern for buyers is how they will secure funds for a down payment. Our workshop facilitators highlight several types of down payment assistance available, such as grants, forgivable loans, deferred loans, low-interest loans, matched savings programs, and tax incentives. Many of those are intended for first-time homebuyers.

You‘ll also learn the specifics of the pre-approval process for receiving a loan, including how your credit score affects your ability to be pre-approved. According to Andrea and Rocio, working with a financial institution to get pre-approved is one of the most significant and beneficial steps toward becoming a homeowner.

Pre-approval paints a clear picture of your financial situation, including what you can afford in a home and how much you will be able to borrow. By showing sellers that you are a serious buyer with secure financing, it also helps you stand out in a competitive market

If you attend a workshop, you can also expect to learn about income requirements for mortgages. As reassurance of your ability to repay the home loan, most lenders will require a minimum of two years employment history to qualify – proof of which can include pay stubs, bank statements, and tax returns.

First-time homebuyer FAQs

With most attendees being first-time homebuyers, several frequently asked questions come up at the workshops. Andrea and Rocio share their responses to these FAQs below.

FAQ: Is it free to apply for pre-approval?

In general, mortgage lenders do not charge for the pre-approval process, although some may charge an application fee.

FAQ: How long is my pre-approval good for?

Most pre-approval letters are good for 30 to 120 days. Pre-approval is based on your financial situation at a specified time. It has the potential to change quickly under certain circumstances. Lenders tend to institute a three-month limit on a pre-approval’s validity.

FAQ: Can I apply for pre-approval with someone who isn’t my spouse?

You do not need to be married to someone to purchase a home with them. Any two or more individuals can be co-borrowers on a mortgage.

FAQ: How long do I need to be employed before applying?

Preferably, you need proof of at least two years of work history as evidence of a stable income. It does not need to be the same job over that entire two-year period.

FAQ: Do I need to have a credit score?

A credit score is not a requirement, but it can create more options for you in terms of mortgage loans. A good credit score can also help you secure better rates and terms on your loan.

FAQ: How do I know what the best mortgage program is for me?

This is specific to each buyer’s personal and financial circumstances. It takes income, debt, credit score, and other factors into consideration. Prospective buyers should learn about the different options and terms available. They should also seek the assistance of a trusted loan officer before committing to a home loan.

Sunrise Banks’ personalized approach to mortgage lending

Workshop attendees will also hear about the importance of finding a lender with loan options to meet your needs and with whom you feel comfortable working.

At Sunrise Banks, our bilingual team of mortgage lenders will be with you step by step through the homebuying process. Their personalized approach to lending includes direct and customized contact with prospective homeowners in person, over the phone, or through video calls.

“Our lenders at Sunrise Banks are happy to help borrowers before, during, and after the mortgage loan process and help them get ready to achieve their goals,” Rocio says.

Part of our personalized service includes building meaningful connections with individuals, families, and the community. Andrea, who has been in her role for 10 years, says the work has become a part of who she is.

“I have helped families from all different backgrounds and cultures achieve their dream of owning their own home,” Andrea says. “The gratitude that I receive from these families who never thought this could be achievable is the greatest gift.”

For Rocio, it’s the excitement and appreciation at the closing table that inspire her in her work.

“I have worked with families from the beginning to build credit. To see their dream of owning a home become a reality is my motivation to keep assisting other families,” Rocio explains. “For some families, owning a home feels impossible and unachievable. With help from other families, nonprofits, and our partners, we have been able to reach other parts of the state and help more families own their first home.”

You can achieve your dream of homeownership 

Now is a great time to apply for a mortgage with Sunrise Banks. Among our competitive loan products, our Pathway2Home® ITIN Conventional Mortgage is one of the best in the state of Minnesota. This mortgage only requires a borrower to have an Individual Tax ID Number (ITIN) instead of a social security number. A P2H loan can help immigrant families looking to establish generational wealth through a home purchase.

Now through August 31, 2024, Sunrise Banks customers can receive $500 off closing costs on a conventional mortgage loan. *

We also pride ourselves on being a force for social good. As a Certified B Corporation, Sunrise Banks leverages the power of business to solve social and environmental problems to create a more inclusive and sustainable economy. Sunrise Banks is also a certified Community Development Financial Institution (CDFI) – a designation held by only approximately 100 banks in the country. As a CDFI, we continuously work to fulfill our mission of providing credit and financial services to underserved communities.

“Not only do our loan officers go above and beyond for our clients every day, but we are also one of the most innovative banks empowering financial wellness,” says Andrea.

Ready for more information or to attend one of our upcoming workshops? Click here to register for our next First-time Homebuyer workshop on Saturday, July 27 at CLUES in St. Paul. You can also contact the Sunrise Banks team of mortgage loan officers to learn more.

Nicole Rothstein is a freelance writer based in Cleveland, Ohio.

Member FDIC. Sunrise Banks is an Equal Housing Lender.

*$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 August 31, 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.