With so many mortgage packages on the market today, the assistance of a knowledgeable loan officer will be helpful to you and your family. The importance of finding a loan officer you feel comfortable with will make the loan process less stressful. A lot of the information you need to provide for the loan process is personal or financial, so you want to find someone you can trust with this information.
The Loan Process
The actual loan process starts with your initial meeting with your loan officer. At this time they will ask you to fill out a loan application and inform you of the many documents you will need to provide. These documents will include your employment history, credit history, tax records, bank accounts, current housing expenses, and information on 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 and what interest rate you will get. It is important to fill the form out completely and accurately so that there are no delays in the actual loan process.
Your loan officer will also be able to explain the many mortgage types to you. The most common loan types are fixed rate, adjustable rate, balloon, and interest-only.
● Fixed rate loans have the same interest rate for the duration of the loan. Loan durations are usually 15 or 30 years. If you select this type of loan, then your mortgage payment will never change.
● Adjustable rate loans will usually start out with a lower interest rate but this rate can adjust at specific intervals. If the interest rate is higher, then your mortgage payment will rise.
● Balloon loans have the same interest rate for the duration of the loan. However, the loan has to be paid in full at the end of 5 years. This can be accomplished by either a lump sum payment or by selling the home.
● Interest-only loans have the same interest rate for the duration of the loan also. Your mortgage payment goes only towards the interest for the first 10 years. At that time, the principal is added in and your mortgage payments will rise.
These and other mortgage packages available in Newington, Connecticut can be explained to you by your loan officer. Together, you can find the best type for you.
Closing
After you have received notice that your loan has been approved, the next step is to schedule closing. At this meeting, you will be asked to read and sign numerous documents. Make sure you understand what you are signing. You will also need to bring a certified check for the amount of your down payment and closing costs. Plan for this meeting to last at least an hour. When the meeting is over, you will be the proud owner of a new home.
Refinance and Home Equity Loans
If you are an existing homeowner in Newington, Connecticut and are in need of some extra cash, consider either a home equity loan or a refinance loan.
Using the equity you have earned in your home makes sense. A home equity loan allows you to either get a lump sum payment or a line of credit. Interest is only charged on the amount you borrow. These loans usually have terms of 10 or 15 years. This money is available to you for whatever you want to spend it on. Why not pay off those credit card bills or medical expenses or consider remodeling your existing home?
Another option is a refinance loan. With this option, you replace your existing mortgage with a new mortgage. You get to choose what loan type you want, including the term and interest rate. Lowering your interest rate will allow you to pay lower mortgage payments each month. The money saved can be used for education costs, go towards a new car, or maybe help pay for a family vacation.
Call our office today to talk to a loan officer about mortgage, refinance, or home equity loans in Newington, Connecticut.
