Your search is over and you have finally found the house of your dreams in Jeffersonville, Indiana. This important purchase will probably require you to get a loan. To help you reach this goal, it is important for you to find a loan officer to work with. If you feel comfortable with your loan officer, it will help make the loan process run smoothly. Also remember that you will need to disclose a lot of sensitive information, and you want someone you can trust with these documents.
The Mortgage Process
When you meet with your loan officer, you will provide them with a multitude of information. Your loan officer will want to get to know you and will ask a lot of questions. You will fill out a loan application at this time. Information required will include employment history, tax records, pay stubs, credit history, bank statements, and housing expenses. To confirm your employment history a verification of employment form will be sent to your employer. Your banks will receive a verification of deposit form to see how well you manage your money. All of this information will enable your loan officer to determine what kind of mortgage will work best for you and how much you will actually be able to borrow. Since this documentation all needs to be verified in writing, expect the loan process to take from 3 to 4 weeks.
Also during the meeting with your loan officer, you will discuss the various mortgage packages available in Jeffersonville, Indiana. With the help of your loan officer, you can sort through these mortgage types and find one that fits your needs. The mortgages you hear the most about are fixed rate and adjustable rate.
● Fixed rate mortgage are not effected by the economy or the market, so they will have the same mortgage payment for the duration of the loan. Loan durations typically are 15 or 30 years.
● Adjustable rate mortgages usually start out with a low interest rate, but this can change when the mortgage reaches an adjustment period. These are usually 1, 3, or 5 years. Your mortgage payment will rise or fall at that time depending on the current interest rate.
Typically while you are waiting for your loan to be approved, questions will arise. Do not hesitate to call your loan officer to ask these questions. It is important to keep informed so that you understand the entire loan process.
Your loan officer will set up closing after you have received word that your loan has been approved. You will finalize the purchase of your home at this meeting. You will sign numerous documents and make your down payment at this time. When closing is done, you will be given the keys to your new house.
Refinance and Home Equity Loans
Refinanceloans are loans that you use to replace your existing loan. Your goal is to change your mortgage so you have a lower interest rate or different loan duration to help lower your mortgage payment. Since you will be obtaining a new loan, you will have to fill out a loan application and disclose the same necessary documentation as before to qualify for your loan. With the lower mortgage payment, you will have extra cash available for such things as education expenses, credit card bills, or possibly purchasing a vacation home.
Home equity loans are great for those homeowners who have lived in their homes for a while. Equity is the difference between the value of your home and the amount you still owe on it. You will be able to borrow from this equity. Home equity loans are usually for either 10 or 15 years and have a low interest rate. You decide whether you want this loan in a lump sum or in the form of a line of credit. Interest is paid only on the amount you borrow. With a home equity loan, you will be able to remodel or repair your home, pay your medical bills, or even purchase a new car.
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