Decatur, Illinois…what can you say about a place so laid back its motto is, “We like it here?” Not much except maybe you ought to try it for yourself. Decatur is home to Millikin University and Richland Community College. Tree-lined streets and older, reconstructed homes lend an air of classic Middle American living to life in Decatur. And with a busy manufacturing, agricultural and industrial market, finding a way to make a living is usually a breeze. So, take the city at its word. You will like it there, too.
Now you need a place to live. What step do you take first? Do you go and find your dream home, put in a bid, and discover you’re not approved? Your best course of action is to first get pre-approved. Why waste time looking at your potential homestead only to find out later that you can’t get financing?
Pre-approval is the process of talking with a lender to verify your income and assets and having a lender essentially say, “Yes, we will give you this amount of money.” It is usually the way to go for two reasons: 1) It gives you a set budget to stay within while you are house shopping. 2) It lets the seller know that you truly want to buy his or her home. Sellers are more likely to choose a buyer who has financing already in place because there’s a greater chance that the contract will stay in place. Before you can obtain pre-approval for a particular type of loan, you have to figure out what’s best for you, and there are hundreds of different kinds of loans on the market today.
Fixed Rate Mortgage
Fixed rate mortgages are very popular because, although the initial interest rate is sometimes higher than most homebuyers would like, the rate is fixed throughout the life of the loan. This type of loan is popular with consumers who want to know exactly what their monthly payment is going to be with no surprises. With a fixed rate mortgage, you are going to need a few items: your tax records for the last two years; your pay stubs or W-2 forms for the same period; and any paperwork showing your other assets. All of these forms will help the lender decide what you can afford.
Adjustable Rate Mortgage
The second type of loan, the adjustable rate mortgage, is also popular. With this type of loan, the payment in the first few years is relatively low. But after that, the rate is subject to several factors: your lender’s index, the market fluctuations, and the caps set by your lender. This type of loan is usually preferred by the homebuyer who doesn’t plan on spending the next 30 years in the same house. Since in the beginning your payments are low, you can get out before the payment climbs to something you can’t afford. And if these two types of loans don’t meet with your fancy, check with your lender. In the last 10 years, a myriad of other loan options have become available.
OTHER TYPES OF LOANS
Mortgage Refinance Loans
But what if you already live in Decatur, and your mortgage just isn’t working for you anymore? Then a mortgage refinance loan is what you are looking for. A mortgage refinance loan is very simply, a brand new loan on your existing house. Whether your financial situation has changed since you initially purchased the house, or you just need a loan with a few more options involved, a refinance will work out perfectly to meet your needs. Consider a cash-out option during the process to line your pockets with a few extra bucks.
Home Equity Loan
If you want cash, but you don’t want to refinance your existing mortgage, a home equity loan may be what you are looking for. With this type of loan, you can get your money in one lump sum or you can space it out over time with a home equity line of credit. With the first option, the home equity loan, you begin paying interest on the full amount immediately. With the home equity line of credit, you only pay interest on the amount you’ve borrowed.
Whether you’re looking for a Decatur mortgage, refinance, or home equity loan, we can help. Take a moment to fill out the form below, and a qualified lender will contact you right away.
