Interested in purchasing a new home in Pleasant Hill, California? With the help of a knowledgeable loan officer, you can find the right mortgage for you. Find a loan officer you will be able to talk to, one who will answer your questions in a manner you understand, and one who you will trust with your personal and financial information.
Mortgage Lenders
At your initial meeting with your loan officer, you will provide basic information regarding why you need a loan. Applying for a loan involves filling out a loan application and providing a lot of personal and financial information. Your loan officer will instruct you on what documentation is necessary. It will include your employment history, credit history, bank statements, housing costs, pay stubs, and information on other assets you might have. Your employer will receive a Verification of Employment form and your banks will receive a Verification of Deposit form. These forms will show your job stability and how well you handle your money. With the help of your loan officer, this information will be collected and analyzed to determine the amount you will be able to borrow.
Mortgage Types
There are many mortgage types available. Your loan officer will be able to answer any questions you may have regarding these mortgage types. Common mortgage types are fixed rate, adjustable rate, balloon, and interest only.
● Fixed Rate Mortgage: With its set interest rate, a fixed rate mortgage will have the same mortgage payment for the duration of the loan. Typically fixed rate mortgages are for 15 or 30 years.
● Adjustable Rate Mortgage: An adjustable rate mortgage will have set intervals when the interest rate can change and, in turn, your mortgage payment will increase or decrease. Typical intervals are 1, 3, or 5 years.
● Balloon Mortgage: A balloon mortgage has a low interest rate but a term of only 5 years. This mortgage has to be paid in full at the end of the term.
● Interest-Only Mortgage: Your mortgage payment with an interest-only mortgage will include only the interest for the first 10 years. At that time the principal will be added, and your mortgage payment will increase.
Closing
After you have been approved for a mortgage, your loan officer will set up the final step of the loan process – closing. At this meeting, you need to be prepared to sign your name on numerous documents and to pay both the closing costs and your down payment. You will be able to find out the exact amount needed so that you can obtain a certified check for payment. Make sure you understand what all the documents are before you sign them. Double check all of the figures before signing anything. Allow enough time for closing.
Refinance and Home Equity Loans
Existing Homeowners in Pleasant Hill, California can benefit from obtaining either a home equity loan or a refinance loan. Using the equity you have earned in your home allows you to borrow money. A home equity loan comes in the form of either a line of credit or a lump sum payment. The loan’s term is usually 10 to 15 years. Interest is only paid on the money you actually borrow. You can use this money for anything – a new car, college tuition, or medical expenses. A refinance loan enables you to replace your existing mortgage with a mortgage that has a lower interest rate or a more favorable mortgage type. The money you save by refinancing can be used for a family vacation or to pay off your credit cards. Since you are obtaining a new loan, you will go through the entire loan process from loan application to closing.
Contact our office today to discuss your lending needs in Pleasant Hill, California with one of our experienced loan officers.
