Guide to Refinance, Mortgage,
& Home Equity Loans in
Prichard, Alabama (AL)

Prichard, Alabama has two nicknames: City of Champions and the Crossroads of Mobile County. Prichard is a city in Mobile County, Alabama with a population recorded in 2005 at just under 28,000 residents. During World War II, many shipbuilding companies built homes for their employees, who were working in nearby Mobile..

December 2006 brought an announcement that Prichard, Alabama, was selected as home to the future Dale Earnhardt, Jr. Speedway, as part of the Alabama Motorsports Park. This complex will encompass 3,000 acres of land in northern Prichard.

Now is definitely the time to make your move to Prichard and either create a new mortgage, refinance an existing mortgage, or look into obtaining a home equity loan. With the advent of the Alabama Motorsports Park, you can bet that real estate values are going up in Prichard, so now is the time to take advantage of the available opportunities.

The Loans Process

You will need to start with the pre-approval process. This involves submitting copies of all pertinent paperwork to your lender. Documentation needed includes:

W-2 tax forms from the past two years (or 1099 forms if you are self-employed)
Recent bank statements
Recent rent or mortgage cancelled checks
Recent pay stubs
Paperwork that shows you have had a steady employment history

Your lender will also run a background credit check to evaluate how you have handled your past finances. Your credit score will result from this process. Your credit score is important in determining the amount of money you are qualified to borrow.

A second factor in determining your credit worthiness is an analysis of your financial resources. Your lender will look at all of your outstanding debts and total the sum you are responsible for paying each month. Your debts will be compared against your monthly income, and this will tell your lender if you will be able to meet your monthly bills.

Loan and mortgage companies prefer that you have ready access to some available cash, called your liquid finances, so in case any emergencies crop up, you will be equipped to handle them.

Your home will also need to go through an appraisal process. If you choose to hire an appraiser yourself, it could cost a few hundred dollars. The government has standards and guidelines regarding licensed appraisers who will do the work for you.

After you have been approved for the loan, you will next need to decide what type of mortgage loan will suit you best.

Mortgage Types

A fixed rate mortgage allows you to lock in the current interest rate for the life of your loan. Using this method, your monthly payment, as well as your interest rate, will remain unchanged and predictable, even if the economic conditions take a turn for the worse.

An adjustable rate mortgage (ARM) starts your loan with a lower interest rate, making it easier for you to manage your payments in the beginning. After a few years, the interest rate is free to change with fluctuations in the market indexes and economy. Your payment amount will change too, perhaps on a monthly basis, depending on how your loan was outlined when you purchased it. You can always choose a refinance option at a later time to try to obtain a more favorable interest rate.

A home equity loan can help you if you have an existing mortgage and have been paying on it for a few years because equity will have built up. Equity is the difference between the value of your home and the amount of money you still owe on the loan. With a home equity loan, you can take the equity as cash in a lump sum payment. Interest will begin to accrue on the loan when you receive the cash.

A home equity line of credit gives you access to the same amount of money, but you don’t have to use it all if you don’t need it all. You pay interest only on the amount you borrow.

Whether you are a NASCAR fan or not, Prichard is an excellent place to be. To find out more about your refinance options, how to get your first mortgage, or how to access the equity in your home, simply fill out the form below.

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