With the many mortgage packages on the market today in Wheat Ridge, Colorado, you will need the help of a knowledgeable loan officer to determine which mortgage will work best for your financial situation. Choose a loan officer you feel comfortable with and one who you trust with the sensitive personal and financial information you will be asked to provide. An experienced loan officer will be able to guide you through the loan process from loan application to closing.
Loan Process
At your initial meeting with your loan officer, it will be determined why you need a mortgage and what the next step is. You will be responsible for filling out a loan application. You will be asked for both personal and financial information. This will include your employment history, credit history, current housing costs, tax records, and information regarding other assets you might have. All of this information will allow the loan officer to determine how much money you will be able to borrow.
Mortgage Types
Your loan officer will also be able to discuss the different mortgage types available on the market today. Many special circumstances, such as physical handicaps or the fact that you or a member of your family is a veteran may allow you to apply for certain loans. Other common loan types include fixed rate, adjustable rate, interest only, and balloon.
● Fixed rate loans allow you to have the same mortgage payment for the duration of the loan because the interest rate never changes. The typical fixed rate loan duration is 15 or 30 years.
● Adjustable rate loans can have mortgage payments that fluctuate depending on the interest rate when it hits a predetermined interval. These intervals are typically 1, 3, or 5 years. The initial interest rate is usually low.
● Interest only loans will have the same mortgage payment for the first 10 years. The payments will include only interest. After 10 years, the principal will be added and your mortgage payments will increase.
● Balloon loans have the same mortgage payment for the duration of the loan, which is 5 years. At this time the loan is to be paid in full.
Refinance Loans
If you are a homeowner in Wheat Ridge, Colorado, consider obtaining a refinance loan. This type of loan will allow you to change the terms of your initial mortgage. You will replace your existing mortgage with a new mortgage, so you will be able to choose a new loan type, new interest rate, and new term. The money you save by having a lower interest rate will be available to help pay your other expenses.
Home Equity Loans
Another option available to existing homeowners is a home equity loan. The longer you live in your home, the more equity you have earned, and the more you will be able to borrow. This type of loan is offered either as a lump sum payment or a line of credit. You will only pay interest on the money you actually borrow. Home equity loans typically have a term of 10 to 15 years. This money can be used for unexpected medical expenses, a family vacation, or even a new car.
Closing
Closing is the last step in the loan process. At closing, you will be expected to pay the closing costs and your down payment. You will be able to get the exact amount a few days before closing so that you can get a certified check for payment. You will be presented with numerous documents for your signature. These documents should include a Truth in Lending Statement, the mortgage note, the Deed of Trust, a monthly payment letter, itemization of the amount financed, and various required real estate documents. It is always a good idea to double check any document before you sign it. Do not hesitate to ask questions regarding any of the documents you don’t understand.
Contact one of our knowledgeable loan officers today to discuss your lending needs in Wheat Ridge, Colorado.
