With many mortgages on the market today, how do you select the one that is right for you? Using the assistance of a knowledgeable loan officer is your best bet. Your loan officer will be available to answer the many questions you will have and guide you through the loan process. Questions that may come up are “What forms do I need to fill out?” “What documentation will be necessary?” “What mortgage types are available?” and “What is closing?”
The Mortgage Process
You will be asked to fill out a loan application at your first meeting. It will help the loan process run smoothly if you fill it out completely and accurately. This information will help the loan officer determine how much you will be able to borrow, what type of mortgage will work best for you, and can even affect what interest rate you will receive.
It will also be necessary to disclose a lot of personal and financial information. For this reason, you will want a loan officer you can trust. Documentation that will be requested will include your employment history, credit history, pay stubs, tax records, current housing costs, and any other assets you might have.
Your loan officer will give you information on the many mortgage types available in Valparaiso, Indiana. The common mortgage types are fixed rate, adjustable rate, interest-only, and balloon.
● Fixed rate mortgages have the same interest rate for the duration of the loan, which is typically 15 or 30 years. Your mortgage payment will never change.
● Adjustable rate mortgages can have interest rates that change depending on the current rate when the mortgage reaches an adjustment period. Your mortgage payment can change at these times.
● Interest-only mortgages allow your mortgage payments to go towards only the interest for the first 10 years. Your mortgage payment will increase at that time because the principal is then added in.
● Balloon mortgages have low interest rates with the same mortgage payments for the duration of the loan. At the end of 5 years, the loan is to be paid in full.
After discussing your financial circumstances with your loan officer, the many other options available in Valparaiso, Indiana can be explored. The one that works for you and your family will be found.
Closing
Your mortgage has been approved, and it is now time to finalize the purchase. At closing, you will be presented with a lot of documents for your signature. Be sure you understand these before you sign them. You will also be asked to pay the closing costs and your down payment. The exact figure will be available to you a few days before the meeting so you can get a certified check for your payment.
Refinance and Home Equity Loans
What options do you have if you already own a home in Valparaiso, Indiana? The extra cash you need to help pay off your credit card bills, medical expenses, or education costs or to help finance a family vacation, start a new business, or buy a new car can be obtained with either a refinance loan or a home equity loan.
If you choose to get a refinance loan, you are actually qualifying for a new loan that will pay off your existing mortgage. You can change to a different mortgage type, lower your interest rate, or select a different loan duration. Your goal is to qualify for a lower interest rate than you have so that your mortgage payment will go down. Maybe you have an adjustable rate loan and want to switch to a fixed rate loan so that you have the same mortgage payment every month. Whatever works to your benefit will help you have extra cash available to help with your financial situation.
If a home equity loan is your choice, you will borrow money from the value of your home and the amount you still owe on the loan. This loan type is available as either a lump sum payment or a line of credit. Interest is only paid on the amount you borrow. Typical home equity loan durations are 10 or 15 years. This money is yours to use for any purpose.
For information regarding refinance, mortgage or home equity loans in Valparaiso, Indiana, fill out the form below. One of our knowledgeable loan officers will be happy to discuss your lending needs with you today.
