Frequently Asked Questions

As you might guess, we have (almost) heard it all in 120 years of mortgage banking. Some of the most asked questions can be found below - or don"t hesitate to ask your loan officer (that"s what she or he is there for).

If you think we"ve missed an important question. Or if you have recently been through the mortgage process and think it would have been helpful to know "x", let us know by sending us an e-mail here.

1. How do I know how much I can afford?
2. How long does it take to get approved?
3. What documentation do I need?
4. How do I know which type of mortgage is best for me?
5. How much of a down payment will I need?
6. What does my mortgage payment include?
7. Where do you send your loans to be approved?
8. How will I be notified of closing?

1. How do I know how much house I can afford?

It"s smart to learn what you can afford before you begin looking at homes. Many first-time homebuyers make the mistake of looking at homes beyond their price range only to be disappointed. We want to make sure you are armed with the correct information. Click here to link to the mortgage calculator page. This will help you research how much house you can afford. Keep in mind that market conditions can effect what you can afford. Make sure to ask your loan officer about rates and programs that could enhance your buying position.

2. How long does it take to get approved?

That depends. Many times approvals can come in the same day; most often it takes about three days. Technology is helping make this process faster, but sometimes we need to spend extra time getting you the best product possible - and that simply takes time. Don"t get fooled into taking the offer that comes along before you hang up the phone. Those lenders are often providing sub-standard loans at high rates and hope that you will commit because they are the first to offer. Be patient.

3. What documentation do I need to bring to the application?

The financing program you select determines the exact documentation required, however, generally speaking you should be prepared to bring the following:

• Federal income tax statements
• W2"s
• Current paycheck stubs
• Bank statements
• Asset and liability information

4. How do I know which type of mortgage is best for me?

Your loan officer is best prepared to answer this question. The right type of mortgage for you depends on many different factors:

• Your current financial picture
• How you expect your finances to change
• How long you intend to keep your house
• How comfortable you are with your mortgage payment changing from time to time

5. How much of a down payment will I need?

Probably less than you might have heard. Typical down payments range anywhere from 2 to 25 percent of the home"s total value, the more you put down, the better. With more than 20 percent down, you won"t need to add mortgage insurance to your monthly payment. Also, a larger down payment reduces your monthly payments. Ask your loan officer about what option makes sense for you.

6. What does my mortgage payment include??

For most borrowers, the monthly mortgage payments include three separate parts: a payment on the principal of the loan (that is the amount borrowed); a payment on the interest; and payments into a special account (called an escrow account) that your lender maintains to pay for things like your hazard insurance and property taxes. These elements are called P.I.T.I. (Principal-Interest-Taxes-Insurance). Mortgage payments can also include mortgage insurance and other fees depending on your state and how much money you have for a down payment.

7. Where do you send your loans to be approved?

We do not send them anywhere. Bell Mortgage is one of the oldest and most respected mortgage brokers in the country. As such we normally have the authority to approve your loan right in our Minneapolis office.

8. What happens after closing?

You"ll receive some temporary coupons to begin making payments, but the real story here is that you are ready to move in! Contact your loan officer if you have any questions and enjoy your new home.