Have you found your dream home in Waipahu, Hawaii? One of the most important decisions you will make in your lifetime is to purchase a house. This purchase will probably require you to qualify for a loan. It is important to find a loan officer who will be able to guide you through the entire loan process. Together you will find the right loan for you and your family’s financial circumstances.
Common Questions
During the loan process you will discover that a lot of questions will arise, especially if you are a first time buyer. Do not be afraid to contact your loan officer when you need an answer to any of them. Typical questions might include:
● What forms need to be filled out?
● What documentation is necessary?
● What loan types are available?
● What happens at closing and who needs to attend?
● What is a refinance loan?
● What is a home equity loan?
Starting the Loan Process
You will be required to fill out a loan application and submit a lot of personal and financial information. This information will include your employment history, tax records, current housing costs, credit history, and possibly tax records. If you have other assets such as a 40lK plan or mutual funds, your loan officer will need to know that. All of this information will help determine the amount you will be allowed to borrow, the interest rate you will receive, and the actual duration of the loan.
Available Loan Types
Your loan officer will help you choose a loan type that works best for you. The two most common loan types are fixed rate and adjustable rate. If you need to work within a budget, a fixed rate loan may be the best for you. The monthly mortgage payments will be the same throughout the duration of the loan. These loans are usually for 15 or 30 years. An adjustable rate loan will have a low interest rate at the beginning, but this rate can change every time it reaches a specified interval. These intervals are typically at 1, 3, or 5 years. Your mortgage payment could rise or fall depending on the adjusted interest rate. If you plan on living in your house for a short period of time, you might want to consider this type of loan. There are numerous other mortgage packages available. Your loan officer will be able to help you make this important decision.
Closing
Closing is the last step in the loan process. At this meeting, you will need to bring a certified check in the amount of the closing costs and the down payment. Numerous documents will be presented to you. After you have read through them and asked any questions, you will be asked to sign them, including multiple copies of them. This meeting should last about an hour but do not try to get it done during your lunch hour or before another appointment.
Refinance Loans
If you own a home in Waipahu, Hawaii, a way to help with your financial needs is to refinance your mortgage. Obtaining a mortgage at a lower interest rate than your original mortgage will free up money that you can use for other expenses, such as medical bills, education costs, credit card bills, or even a family vacation. To obtain a refinance loan, you will have to fill out a loan application and provide the above-mentioned documentation because you are actually applying for a new loan.
Home Equity Loans
The equity in your home can be used to obtain a home equity loan. You can receive this money in either a lump sum or a line of credit. This loan will have a low fixed interest rate. Common loan durations are 10-15 years. You will only pay interest on the amount you borrow. This money can be used for home improvements, college, credit card bills, or a new car.
For help with your lending needs in Waipahu, Hawaii contact one of our knowledgeable loan officers today.
