Finding a Loan Officer
Your first step after finding a house you want to purchase in Montclair, California is to find a loan officer who can guide you through the loan process. Do your research and ask questions to find a loan officer who you can work with. Find someone you can trust with the sensitive information you need to provide and who you have the confidence in to find the mortgage that will work best for your financial situation.
How to Qualify for a Loan
You will be required to submit a lot of personal and financial information to qualify for a mortgage. This information, along with the actual loan application, will help determine how much money you will be able to borrow.
● Employment Information: Your current and previous employers will be sent a Verification of Employment form which will show the positions you have held in the past two years. This form will show your job stability. You will also be asked to provide your pay stubs. Other employment information might be necessary such as if there were a reason you had to be off work for any length of time.
● Financial Information: A Verification of Deposit form will be sent to all the banks you have accounts with. This will help to show how well you handle your money. You will also be asked for your credit history, tax records, current housing expense, and information regarding other assets you might have such as a 40lK plan, or mutual funds.
All of this information will help to determine what your loan size, interest rate, and even the duration of the loan itself will be.
Questions to Ask
Numerous questions will arise during the loan process. Answers to these questions will help to alleviate any concerns you might have.
What mortgage types are available to me? Your loan officer will be able to educate you on what mortgage types are on the market. The two most common forms of mortgages are fixed rate and adjustable rate. Considering all of your information, along with the conditions of the various types of mortgage packages available, will enable you and your loan officer to determine the right one for you.
What is the current interest rate? Interest rates can change daily. Your loan officer can keep you informed of these changes. The interest rate you receive on your mortgage will help to determine your monthly mortgage payments and is an important factor in the decision making process.
How long will it take to close on the mortgage? The loan process will be affected by the timely manner in which the necessary documentation and forms are presented. Your loan officer should be able to help speed up the process and keep you informed on its progress.
What happens at closing? Closing is the final step in the loan process. You will be asked to sign numerous documents and to present a certified check that will cover the closing costs and the down payment. At the end of this meeting, you will be handed the keys to you and your family’s new home.
Refinancing and Home Equity Loans
If you already have a mortgage in Montclair, California, you can benefit from either a refinance loan or a home equity loan. The money that becomes available to you with either of these loans will help you to pay off credit card bills, medical expenses, remodeling or repairing your home, education costs, an upcoming wedding, or even a family vacation.
A refinance loan allows you to choose a new loan to replace your existing loan. The interest rate, mortgage type, and term will change. The new interest rate will lower your mortgage payment, thus freeing up money for other expenses you might have. Since you will be qualifying for a new mortgage, you will have to go through the same loan process as mentioned above.
A home equity loan allows you to borrow money against the equity you have earned in your home. This loan can be in the form of a lump sum or a line of credit. It will have a fixed interest rate. You will only pay interest on the amount borrowed. Typical durations for home equity loans are 10 to 15 years.
For assistance with your lending needs in Montclair, California, contact our office today.
