Guide to Refinance, Mortgage,
& Home Equity Loans in
Henderson, Kentucky (KY)

One of the most important steps in the loan process is filling out the loan application. To help the loan process occur in a timely manner, this form needs to be filled out completely and accurately. Your loan officer will also need to collect both personal and financial information. This will include your employment history, credit history, pay stubs, current housing expenses, tax records, bank statements, and information on 401K plans and mutual funds. Information regarding your job status will be obtained from a verification of employment form that is sent to your employer. Bank account information will be checked with a verification of deposit form that will be sent to your banks. This information, along with the loan application, will help the loan officer determine how much you will be able to borrow and what type of mortgage will work best for you and your family’s financial situation.

Mortgage Types

Your loan officer will be able to explain the many mortgage types available in Henderson, Kentucky. The two most common mortgage types are fixed rate and adjustable rate. Balloon and interest-only loans are also available. Fixed rate loans have the same interest rate throughout the duration of the loan. This will give you the same mortgage payment every month. Adjustable rate loans start out with a lower interest rate, but it can change when the loan reaches an adjustment period. Your mortgage payment can rise or fall at this time. Balloon loans will also have the same mortgage payment for the duration of the loan, but the loan itself has to be paid in full in 5 years. This can be accomplished with a lump sum payment. With an interest only loan, your mortgage payments for the first 10 years go toward the interest. Your mortgage payment will increase at that time when the principal is added in.

Questions to Ask

How long will the loan process take? Because all the documentation required needs to be verified in writing, expect the loan process to take 3 to 4 weeks.

What fees will I have to pay? Your loan officer will let you know what fees you are responsible for. These fees could be for the application, the credit history, the appraisal, closing costs, and any processing fees or documentation fees.

What happens at closing? Closing is the final step in the loan process. You will sign the papers to finalize the purchase of the home and make your down payment and closing costs. Expect this meeting to last about an hour.

Options for Existing Homeowners

You may be considering a home equity loan or a refinance loan to help with your current financial situation.

● Home equity loans usually have a 10 or 15 year duration and a low interest rate. The amount you are able to borrow is determined by the equity you have earned in your home. The equity is the difference between what you owe on the home and the home’s value. You have the choice of either a lump sum payment or a line of credit. Now you can pay off those credit card or medical bills, buy a new car, or start a new business.

● A refinance loan is a new loan to replace your existing loan. This loan is especially beneficial to you if you are unhappy with the terms of your existing loan. You can choose a new mortgage type with a new interest rate and new term. You will go through the same loan process to qualify for a refinance loan as you did to get your original mortgage. Lowering your mortgage payment will free up cash that you can use for education costs, remodeling, or a family vacation.

Fill out the form below to contact one of our loan officers today to discuss refinance, mortgage, or home equity loans in Henderson, Kentucky.

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Last Updated: Wednesday, May 23rd 2012