We understand that buying a home is one of the biggest decisions you’ll ever make, and it can be hard to know where to start.
Our team is here to help you every step of the way and achieve your dream of homeownership.
At Alliance Mortgage, we are proud to be a locally-owned and operated company in Fargo, ND. We understand that our community is not just a location. It’s a group of people who share the same values, goals, and aspirations. Being a local business means more than being physically located in the area; it means being an active member of the community and giving back to it.
We are committed to supporting local organizations and events, and we take pride in our impact on our community. By working with local clients, we can provide personalized service and build relationships based on trust and understanding.
Choosing Alliance Mortgage means choosing a company that cares about your success and the success of our community.
Our loan officers are ready to provide clarity and personal assistance for your first home, dream home, or refinance. And they’ll be there for you every step of the way.
A mortgage is a loan that is used to purchase a home. The borrower (homebuyer) makes a down payment and then repays the loan with interest over a set period (typically 15 or 30 years). The home serves as collateral for the loan.
Common types of mortgages include:
A fixed-rate mortgage has an interest rate that remains the same for the duration of the loan, while an adjustable-rate mortgage (ARM) has an interest rate that can change over time.
The minimum down payment for a conventional loan is typically 3%, but some lenders may require more. FHA loans have a minimum down payment of 3.5%. VA and USDA loans do not require a down payment.
A mortgage pre-approval is a process where a lender evaluates a potential borrower’s creditworthiness and income to determine how much they can afford to borrow. It is important to have pre-approval before shopping for a home as it can make the home-buying process smoother and provide an advantage when making an offer on a home.
You can find the best mortgage rates by shopping around with different lenders, comparing rates and terms, and checking online resources.
Income and credit score requirements vary by lender, but most require a credit score of at least 620 and a stable income.
Your debt-to-income (DTI) ratio compares your monthly debt payments to your monthly income and is used to determine your ability to repay a loan. A high DTI ratio can make it more difficult to qualify for a mortgage.
It is possible to get a mortgage with a low credit score, but you may have to pay a higher interest rate or put down a larger down payment.
The mortgage approval process can take anywhere from a few days to a few weeks, depending on the lender and the complexity of the loan.
PMI is insurance that protects the lender if the borrower defaults on the loan. It is typically required for conventional loans with less than 20% down payments.
To compare different mortgage options, look at the interest rate, fees, and terms of each loan. Be sure to also consider factors such as your credit score, income, and debt-to-income ratio.
Closing costs are expenses associated with obtaining a mortgage and closing on a home. They can include things like appraisal fees, title fees, and attorney fees.
If you can’t make your mortgage payments, it’s important to contact your lender as soon as possible. They may be able to work with you to come up with a solution, such as a loan modification or forbearance plan.
You can refinance a mortgage to get a lower interest rate, change the loan term, or take cash out of the equity in your home. The best time to refinance is when interest rates are lower than what you are currently paying on your mortgage.
It’s important to consult with a lender and consider the costs and benefits of refinancing before making a decision.