Home Mortgage FAQ's

If applying for your first mortgage loan, the initial step you should take is to make an appointment at your local Northwoods Bank branch to discuss your options with a loan officer.  You can also visit our Home Mortgage Loan Center to learn more information.

View our current mortgage interest rates here.  Keep in mind that these rates can change daily.

0% - 20% down depending on the type of loan you qualify for plus closing costs, which will vary depending on the type and the loan amount

Amount of down payment required depends on which mortgage program best fits your needs.  Northwoods Bank has programs available to finance up to 102% of the purchase price.

First step is to get preapproved with a Northwoods Bank Mortgage Lender.  You will be given a “Preapproval Letter” to take to the realtor.  Northwoods bank of Minnesota works with many excellent realtors, and we can recommend a number of realtors to choose from.

We have a number of financial calculators on our website that can help you evaluate your ability to repay a loan.  We recommend first time borrowers speak to a loan officer to see what they may qualify for.  For more information, contact us.

Taxes, Homeowners insurance, and Private Mortgage Insurance (PMI) may be required depending on the loan type.  Other costs to consider when purchasing are home improvements that need to be done (painting, etc.).

Your mortgage note will be secured with the land and any structures on the land.

• Two years W’2s, 2-3 years federal income taxes depending on the loan or if you are self employed
• one month paystubs
• 2 month deposit account statements
• one month or last statement for any other assets such as retirement funds and life insurance policies that have a cash value
• abstract of the property being refinanced

• Complete Real Estate Application, including address and legal description
• your income
• price of what you are looking for
• fully executed purchase agreement

That depends on your income and additional monthly payments, i.e. car, credit card, etc.

Northwoods Bank of Minnesota offers a “mortgage calculator” to determine how much mortgage you can afford; or stop in to visit with our mortgage lender and they will perform a “prequalifaction” at no cost to you.

It depends on your current payment, interest rate and number of years left on your mortgage.  If you can lower your current mortgage interest rate, and recover the closing costs of the refinance within 18 – 20 months, this would indicate a “positive” move to refinance, provided you plan to stay in the home 3 or more years.  Stop in to visit with a mortgage lender, and we can go through the numbers at no cost to you.

A credit score, also known as a FICO score, is a number assigned to a person that indicates his or her ability to repay a loan.  Lenders use credit scores to evaluate potential default risk of a borrower.  A credit score is determined by a person’s credit information, typically provided by credit bureaus.

Easy! Click here for your credit report and score.  You are also granted one free credit report per year at annualcreditreport.com from each of the nationwide consumer credit reporting companies. However this free report will not give you your credit score.