Mortgage Frequently Asked Questions

Yes. You can apply for mortgage pre-qualification before you’ve chosen a property. If you already have a property under contract, you can complete a full home loan application.

There is no upfront fee to authorize The First National Bank in Sioux Falls to pull your credit report. To run a credit report, we do require a completed mortgage application or pre-qualification application.

Mortgage interest rates can change daily and without notice. Locking your rate helps protect you if rates increase during the lock period.

You may lock in your mortgage rate once you have identified a property and submitted your application. Rate locks are typically available for 60 days. If you need a lock period longer than 60 days, please discuss your options with your Mortgage Banker. We will send you a rate lock agreement for your signature. If rates rise during the lock period, we will honor your locked rate. If rates fall during the lock period, you agree to keep the locked-in rate. We do not charge a fee to lock in a mortgage rate.

We require an appraisal, but not a home inspection. However, both an appraisal and a home inspection are designed to protect you.

The appraiser documents any obvious construction issues or damage that could affect the value of the home. The home inspector performs a detailed inspection and records any possible concerns or defects such as the need for a new roof, furnace, or electrical equipment.

We provide a copy of the appraisal to all borrowers.

Federal law requires all lenders to determine whether a property is in a special flood hazard area as determined by the Federal Emergency Management Agency (FEMA). We use a third-party company to provide us with standard flood determinations.

If your property is included in a flood hazard area, you will be required to have flood insurance coverage. Should this occur, your Mortgage Banker will contact you directly to go over what is needed.

The closing will take place at a title company. You will sign several loan documents and the sellers will sign immediately after you. Between the signings, you will exchange keys, garage door openers, etc.

At closing, you and anyone else listed on the mortgage must be present. Your real estate agent, the seller, and the seller’s real estate agent may also attend.

The most important documents you will be signing are:

• Closing Disclosure (CD): This comprehensive document lays out the loan terms, estimated total closing costs, and includes any applicable disclosures.
• Note: This is the document you sign to promise to repay your mortgage loan. The note will provide you with all the details of your loan such as the rate, principal and interest payments, length of loan, etc. It also explains the penalties if you do not make your payments as agreed.
• Mortgage: This document is recorded at the courthouse and places a lien on your home. The mortgage will state your rights and the lender’s rights in case of default as well as restate the terms of the Note.

Your lender or closing agent will be able to answer any questions you have regarding these documents.

It is required that you be given or mailed:

• A Loan Estimate (LE) within three business days after you apply.
• A Closing Disclosure (CD) at least three business days prior to closing. You will have an additional three business days to review a revised CD if you or your lender make certain changes.

You will have at least seven business days to review the paperwork between the time you receive an LE and the time you close.

If you will not be able to attend the closing, you may be able to have a Power of Attorney or appoint someone you trust to sign the closing documents for you. In some cases, we may be able to send the documents to you for your signature prior to the date of the closing. All documents need to be signed, notarized, and sent back before the closing date.

Your Mortgage Banker will contact you 24 hours before the loan closing to go over your final numbers and give you the exact amount you will owe to close. At the loan closing, you will need to bring a cashier’s check payable to the title company for the amount owed.

At the time of the closing, you will be provided with an automatic payment authorization form. You may either complete the form at the closing or send it to your lender at a later time.

Your mortgage loan may be sold to the secondary market. We will notify you when issuing the Loan Estimate if your loan will be sold.