Pederson Realtyhas long standing relationship with Jean Beisner of Bell Mortgage.  Jean's professionalism and experience as a real estate loan officer in and around the Twin Cities is second to none.  We highly recommend her as she has assisted everything from first time home buyers tocommercial real estate loans to multi-unit purchases and everything in between. 

The Loan Process

Application

The first step to securing a mortgage loan is simple - you need to apply. If you're not quite ready to apply, and need more information, contact us at 612.356.2121. To process your application through any program, we need your financial information - current mortgage or rent, other loans, household income, assets, etc. Your mortgage loan officer will be able to help you through this process. It's up to you how we start the process. You can apply on-line here. Or, if you prefer, stop by our offices and take care of the paperwork in person, if you are short on time you can apply over the phone - 612.356.2121.

Preliminary Approval

Upon applying for a mortgage loan, it takes about 3 days (usually less) until we have a result. This result is based on the basic information you provide as well as our work to match you with the best possible mortgage financing source and mortgage product. Your mortgage loan officer will be able to explain all the details at this point and present all options.

Loan Processing

Once you are approved for a home mortgage loan we walk you through all the details and ensure all your questions are answered.  As this is a big decision we want to make sure you understand all the financial implications.  If you have questions, your mortgage loan officer and Pederson Realty will be right there to help you. As you might guess, we need paperwork completed and signed before we can go on. As always, make sure to make a copy of the forms for yourself and keep them in a safe place for your records. Here is a summary of the forms involved:

• Good Faith Estimate of Settlement Costs; Shows you all related charges and fees for getting a home mortgage.
• Truth in Lending Disclosure; This lets you know what your estimated annual percentage rate of interest (APR) will be and any other program features that apply.
• "Borrowers Certification"; When you sign this, you authorize that all the information you provided is correct to the best of your knowledge. It also lets us finalize the process by contacting your landlord, employer, mortgage company, etc. and getting your credit report.

Appraisal

Next, we arrange an appraisal of the property to determine its fair market value. The appraiser will visit the property and compare its features, floor plan, lot, etc. against other similar properties in the area. (You'll receive a copy of the appraisal at closing.) We also obtain a title report (an attorney's opinion) at this time. This will tell us the legal details of the property including liens against it (i.e. another loan).

Final Approval

Now it's time for "mortgage underwriting" to do its job. This may seem intimidating, but it's not. Basically, a mortgage underwriter looks over all the paperwork and home loan details and agrees that it supports the preliminary approval issued in step 2. Ever wonder what they look for? Here are a few key items:

• The Property: In this case, they review the appraisal report.
• Total Debt Ratio: This is the ratio between all your sources of income against all your debts.
• Cash Reserves: After your loan settlement costs are paid, this is the amount of money left over in your bank account. You'll still need cash to live on until the next paycheck comes.
• Credit History: Looking at your past debts and payment history is a measure of how likely and able you will be to repay your loan.
• Employment History: This isn't only how much you make, but how stable is your income.

Closing

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