You are ready to purchase a house in Ankeny, Iowa and have set up an appointment to discuss your lending needs with a loan officer. At this meeting you will fill out a loan application, disclose lots of personal and financial information, and explore the many mortgage types available to you.
Applying for a Mortgage
The loan application is one of the most important parts of the loan process. It will require you to have information regarding the house you wish to purchase, your employment history and credit history, and your current financial situation. This form needs to be filled out accurately so that there are no delays in the loan process.
A verification of employment form will be sent to your employer to verify your job status and a verification of deposit form will be sent to your banks to see how well you manage your money. It is important to provide information regarding income you might receive from alimony, commission, or stocks and bonds.
Mortgage Types
Mortgages available in Ankeny, Iowa include fixed rate, adjustable rate, balloon, and interest-only. Fixed rate loans are the simplest. The interest rate at the beginning of the loan will be the same at the end of the loan. Your mortgage payment will never change. Adjustable rate loans can have mortgage payments that fluctuate because the interest rate can change when the loan reaches an adjustment period. Your mortgage payment will rise or fall depending on the interest rate at that time. Balloon loans have short terms and are expected to be paid in full with a lump sum payment. Interest-only loans will have the same mortgage payment while you are paying on the interest, but when the principal is added in, your mortgage payment will increase.
Your loan officer will be able to explain these in more detail and will also be aware of other types that might fit your financial situation. Together you will find the right fit for you and your family.
It is important to keep in contact with your loan officer while you wait for your loan to be approved. Do not hesitate to ask questions to help this be a less stressful time.
Closing
The final step in the loan process is closing. This is where you will sign all the necessary papers to become the owner of your home. Do not sign anything until you understand what it is. It will be necessary for you to make your down payment and pay closing costs at this meeting also. This meeting usually lasts an hour. When the meeting is over you will be handed the keys to your new home.
Home Equity and Refinance Loans
Existing homeowners can benefit from either a home equity loan or a refinance loan. Both of these loans will free up money to help you remodel your home, pay off credit card bills, attend college, pay for medical expenses, or even purchase a new car.
Home equity loans allow you to borrow money on the equity you have earned while living in your home. Why not use this equity to your benefit? Home equity loans are usually for 10 or 15 years. You can choose between a line of credit or a lump sum payment. Interest is only paid on the amount you borrow. This money is yours to do with as you will.
A refinance loan is a new loan that replaces your existing loan. You will go through the same loan process as when you got your first loan. You can change your mortgage type, interest rate, and loan duration. Lowering your mortgage payment is the goal. With this lower mortgage payment, you will have extra money available every month.
Fill out the form below to discuss mortgage, refinance, and home equity loans in Ankeny, Iowa with one of our knowledgeable loan officers.
