Urbandale, Iowa homeowners who have lived in their homes for a while may need some extra cash. A refinance loan will help you to replace your existing loan with a new loan. This is especially helpful if you are not happy with your current interest rate or the terms of your loan. If you change to a loan with a lower interest rate, then you will have lower mortgage payments. To apply for a refinance loan, you will need to go through the entire loan process, from filling out the loan application to closing.
Home Equity Loans
If you have lived in your home for a while, it might be beneficial for you to consider a home equity loan. The loan comes from using the equity you have earned in your home to borrow money. Equity is the difference between the value of your home and what you still owe on your loan. You have the option of either a line of credit or a lump sum. If you choose a lump sum, you will pay interest on the entire amount. If you choose a line of credit, you will only pay interest on the amount you borrow. Home equity loans typically have terms of 10 or 15 years. This money can help you get out of debt, pay for education costs, or even buy a new car.
Mortgages
There are many types of mortgages available in Urbandale, Iowa. You will have the opportunity to choose what interest rate you receive, how long the term will be, and even the type of loan that will work best for your situation. All of this will be determined after you provide the necessary information and fill out a loan application. Working with an experienced loan officer will enable you to have a smooth loan process.
Mortgage Types
Fixed rate – With this loan, your interest rate will never change. Your mortgage payments will be stable for the duration of the loan.
Adjustable rate – The interest rate can change when the loan reaches an adjustment period. Your mortgage payments will go up or down depending on the interest rate at these times.
Balloon – A balloon loan has a stable interest rate with the same mortgage payment every month but it has to be paid off in 5 years.
Interest-only – For the first 10 years of this loan, you will pay only interest. Your mortgage payment will be the same every month. After 10 years, the principal is added and your mortgage payment will rise.
Ask your loan officer for information on these and the other mortgage types available in Urbandale, Iowa.
Steps in the Loan Process
At the initial meeting with your loan officer, you will be asked why you need a mortgage. You will disclose a lot of personal and financial information, including your employment history, tax records, credit history, pay stubs, bank statements, 401K plans, and mutual funds. Keep in mind that all this information will help set your interest rate, loan terms, and mortgage payments.
Your next step will be to fill out a loan application. This form needs to be filled out completely and accurately. Any omissions will cause delays in the loan process. Because there is a need for much of the information required to be in written form, the loan process may take from 3 to 4 weeks. Keeping in touch with your loan officer during this time will keep you abreast of the loan’s process.
The final step in the loan process is closing. After you have been approved for your loan, your loan officer will set up this meeting. At closing, you will purchase your home. Come prepared to sign your name to multiple documents and to pay your down payment and any closing costs. This figure will be available to you a few days prior to the meeting so that you can obtain a certified check. At the end of this meeting, you will be handed the keys to your new home.
Contact our office today to discuss a mortgage, refinance, or home equity loan in Urbandale, Iowa with one of our loan officers.
