WHAT IS A MORTGAGE?
A mortgage is a loan Sentry Bank can give you to help finance the purchase of your home. The physical home acts as collateral in exchange for your mortgage.
Fixed Rate (FRM)
In this mortgage, the interest rate on the loan remains the same throughout the entire term of the loan.
Adjustable Rate (ARM)
In this mortgage, the interest rate adjusts periodically based on the conditions of the market. Your interest rate may increase or decrease.
A down payment is the portion of the cost of your home you will need to pay, which cannot be borrowed. Typically a down payment will be taken from your savings account, a CD, or as a gift from parents or other family members. Typically down payments range from 3-20%, depending on your credit history, the type of home and location.
A pre-approved mortgage is useful as an estimate of how much you can afford to spend on your home. If you are pre-approved, it means your lender has already checked your credit and verified your income and other information. You are typically pre-approved for only a limited time, so it’s useful to get pre-approved right before you decide on a home to purchase.
TYPES OF MORTGAGES
A conventional mortgage only involves private lending. The mortgage is not guaranteed or insured by any government agency, and is typically an FRM.
A rural development mortgage is a $0 down mortgage backed by the Department of Agriculture. Properties in certain suburban and rural areas are eligible, and borrowers need a certain level of credit.
Most areas outside of St. Cloud, Waite Park, Sauk Rapids and Sartell proper qualify.
Federal Housing Administration (FHA)
An FHA mortgage is insured by the FHA, but you must have mortgage insurance on top of your mortgage to protect the FHA and the lender.
Veterans Administration (VA)
Only qualified lenders like Sentry Bank can offer VA mortgages. The VA mortgage is designed to offer long-term financing to eligible American veterans or their surviving spouses. The mortgage is guaranteed by the Department of Veterans Affairs.
If you’re a first-time homebuyer, you may be eligible for certain programs. Our mortgage experts, Joe and Brad, can help you discover the best options for you. In the meantime, check out our exclusive Home Buyer’s Guide Blog series where you can download a helpful guide that will take you through the whole buying process from start to finish!
WHAT INFO DO I NEED TO GET APPROVED?
In order to get approved or pre-approved, you’ll need the following documents:
- W-2s for the most recent 2 fiscal years
- Pay stubs for the most recent 2 complete pay periods
- Bank statements for all financial accounts, including investments for the most recent 2 months, all pages
- Signed personal and business tax returns, all pages and relevant schedules
- If self-employed, a copy of your most recent quarterly or year-to-date profit/loss statement
- A copy of the signed purchase and sales agreement
Are you ready to own your own home? Fill out the form to contact Joe and Brad and they will get in touch with you shortly!
Meet Our Mortgage Lending Team:
Joe has been in banking for about 15 years with most of his time spent as a lender. He has spent time in consumer, agricultural, and commercial lending, but his current expertise is home mortgage lending. He has been with Sentry Bank since 2013 and you can find him at our St Joseph location.
NMLSR ID# 780986
Brad Eckhoff has over 15 years of banking and credit experience. With a mortgage based background, Brad enjoys helping people find the right financing package for their specific situation. Brad appreciates helping and watching customers progress in their financial goals.
NMLSR ID# 1002576
Get In Touch
Fill out the form to contact Joe and Brad and they will get in touch with you shortly. In the meantime, check out our exclusive Home Buyer’s Guide Blog series where you can download a helpful guide that will take you through the whole buying process from start to finish.