Searching for information regarding mortgages, refinance loans, and home equity loans in Michigan City, Indiana? A knowledgeable loan officer will be able to explain the many mortgage packages on the market today. Together, you will be able to find the right mortgage to fit your financial situation.
Loan Process
At the initial meeting with your loan officer, you will provide basic information regarding the purpose for the loan. Your loan officer will explain the different mortgage types available to you. Any questions you may have regarding the loan process itself should be answered. You will be responsible for filling out the loan application and providing the necessary documentation required to start the loan process.
Mortgage Types
The two most common mortgage types are fixed rate and adjustable rate. A fixed rate mortgage will have a higher interest rate, but this rate will be set for the duration of the loan. Typical durations are 15 or 30 years. This mortgage type may work best for you if you and your family have to stay on a budget, as your mortgage payments will be the same from month to month. Adjustable rate mortgages initially have a low interest rate. The interest rate can change at predetermined intervals. Your mortgage payment can rise or fall depending on the interest rate at these intervals. Intervals are typically 1, 3, or 5 years.
There are numerous other mortgage packages on the market. Your loan officer will be able to match the one that is right for you.
Necessary Documentation
It will be necessary for you to provide a lot of personal and financial information during the loan process. A Verification of Employment form will be sent to your employer to show your job stability. A Verification of Deposit will be sent to your banks to show how you handle your money. You will also need to provide pay stubs, tax records, credit history, bank statements, and information regarding any other assets you have. This information, along with the loan application, will help to determine the amount of money you will be able to borrow. It may take awhile for all the necessary information to be collected and analyzed. It is important to keep in touch with your loan officer during this time.
Closing
After you have been approved for your loan, the final step is closing. At this meeting, you will be asked to sign multiple copies of numerous documents. You will need to be prepared to pay both the closing costs and your down payment with a certified check. The exact amount will be available to you a few days before closing. Plan to spend about an hour at closing but be prepared to stay for longer than that. At the end of this meeting you will be the proud owner of a new home.
Refinance Loans
If you are a homeowner in Michigan City, Indiana, you may want to look into a refinance loan. Refinancing allows you to replace your existing mortgage with a new mortgage. The advantage to this is that you can get a lower interest rate and a different mortgage type. With the new interest rate, you will have a lower mortgage payment. The money saved will be available to pay off credit card bills, medical expenses, or college tuition.
Home Equity Loans
Home equity loans are a great option for existing homeowners who have lived in their homes for a while. You will be able to borrow money on the equity you have earned in your home. This loan is available either in a lump sum or as a line of credit. You will pay interest only on the actual amount you borrow. Home equity loans typically have a term of 10 to 15 years. You will be able to use this money for whatever purpose you need including a family vacation, repairing or remodeling your home, or even a new car.
For help with your lending needs in Michigan City, Indiiana, call our office today.
