Are you a homeowner in Fallbrook, California looking for information about mortgage, refinance or home equity loans? Let one of our knowledgeable loan officers guide you through the loan process from beginning to end.
Loan Process
You will meet with your loan officer so that the necessary information to process the loan can be collected. This will include your employment history and bank history. A verification of employment form will be sent to your employer to show that you have been working and a verification of deposit form will be sent to your banks to show how well you manage your money.
You will be asked to fill out a loan application. The information you supply on this form will help determine how much money you will be able to borrow and what terms or interest rate you may receive. Fill this form out as completely and accurately as possible. Any omissions will cause delays in the loan process. Information necessary to fill out this form will include pay stubs, tax records, credit history, employment history, bank accounts and information on 401K plans or mutual funds.
Expect this meeting to last at least an hour. Do not hesitate to ask any questions that may come up. With all of this information, your loan officer will able to determine what mortgage package is suitable for you and your family.
Loan Selection
After the loan officer has collected the necessary information, he or she will be able to help you explore the many loan types available in Fallbrook, California. Common loan types are fixed rate, adjustable rate, balloon, and interest-only.
Fixed rate loans are the most common. The interest rate never changes during the term of the loan, which is typically 15 or 30 years. This type of loan allows you to have the stability of knowing that you will have the same payment every month.
Adjustable rate loans have predetermined adjustment periods. At these times, the interest rate can change. If the interest rate is up, then your mortgage payment will rise and vice versa. This type of loan can work for you if you plan on living in your home for a short period of time or you expect interest rates to lower in the next few years.
Balloon loans offer you the same interest rate for the duration of the loan. However, at the end of 5 years, the loan must be paid in full. This type of loan also will work for those who plan to live in their home for a short period of time. You will be able to use the money from the sale of your home to pay off the loan.
Interest-only loans will also have the same interest rate for the duration of the loan. For the first 10 years of the loan, your mortgage payment goes towards the interest. At that time the principal is added in and your mortgage payment will rise. This type of loan is great for families who expect their income to rise in the coming years.
Refinance or Home Equity Loans
Homeowners in Fallbrook, California might consider either a refinance loan or a home equity loan. Both of these types of loans will allow you to have cash to help pay off your medical or credit card bills, remodeling, a family vacation, or even to start a new business.
When you select a refinance loan, you are actually paying off your existing loan with a new loan. You will have to go through the loan selection process again, along with the loan application and closing. If your existing loan has a higher interest rate than what is current, then this is an excellent way to reduce your mortgage payment. You can also lower your mortgage payment by changing the terms of your existing loan.
When you select a home equity loan, you will be borrowing money toward the equity you have earned in your home. Equity is the difference between what you owe on your loan and the value of your home. This money is available either as a line of credit or a lump sum. Home equity loans usually have shorter terms of 10 to 15 years.
Call our office today to get information about a mortgage, refinance or home equity loan in Fallbrook, California.
