Tinley Park, Illinois is a great community, and if you are moving here, you will adore it. The historic district is made up of the village's original 1892 boundaries. With a population of 57,477, the community offers many opportunities for those seeking to purchase real estate. When it comes to matters of real estate, most people get lost in the terminology. Just a bit of knowledge will help you get the best refinance, mortgage and home equity loans you can get in Tinley Park, Illinois.
Here are a few facts to get you started:
1. Refinance and home equity loans that are obtained in the fall or winter months usually have lower interest rates along with lower fees than those purchased during the spring and summer months.
2. Lenders are required by law to provide the borrower with a Good Faith Estimate (GFE) of closing costs and a Truth in Lending (TIL) statement within three business days of having received an initial application. Hold your lender to this. It is important that you review this and give yourself plenty of time to understand all the fees.
3. It is important to understand the many types of loans that are available for refinancing. Each different loan has its own set of pros and cons, and by knowing the basic features of each type you’ll be better prepared to have an educated conversation with your broker.
4. It is important to insist that the interest rate quoted to you by the refinancing lender is provided to you in writing as soon as possible so that you may use that information as a basis for further investigation and comparison. The lender’s letter should include the interest rate, the period of the rate lock, and all other significant aspects of the loan program.
5. You should not obtain a home equity loan if you are considering refinancing your first mortgage any time within the next year. Most lenders will look at the combined total debt from both mortgage loans, even if you only applied to refinance the first mortgage loan. In some cases, having the second mortgage in place, especially if it’s a newer loan, can work against you. Many lenders will charge you a higher interest rate on your refinance loan, or even possibly turn down your application.
6. Those borrowers with great credit are likely to be approved for a home equity loan that is higher than the actual equity in the property.
7. You should read all the documents and papers completely before signing them. Many people find themselves in situations they are not prepared for because they signed something that was not adequately explained or disclosed. Even though you will sign significant documents, take your time and do not let lenders or brokers pressure you into signing without reading. It’s also a great idea to always have your attorney review all documents and explain them to you in detail. The money you pay an attorney could save you later on.
8. You should not make large purchases or take on additional debts during the application phase of your refinance or home equity loan process. The added debt on your credit report could adversely effect the terms and/or approval of your loan.
9. There are some refinance and home equity loans that contain “teaser” interest rates. These are rates that start out very low but continually increase over time. Generally, this fact is not appropriately disclosed or explained to the borrower, and there can be problems when monthly payment invoices start to increase after some time. Be sure to get exact specifics from the lender about the details of the interest rates.
10. You have the ability to negotiate your loan terms and interest rate. Keep in mind that there are many mortgage lenders competing for your business and many of them are willing to consider your requests for better terms or lower interest rates. If they know that you’ve got a more competitive offer somewhere else, they should be much easier to deal with.
If you’re ready to get a mortgage, refinance, or home equity loan on your Tinley Park, Illinois home, take a moment to fill out the form below. A qualified professional will contact you right away to discuss your needs.
