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

You and your family have found a house in Richmond, Kentucky. Your next step to ensure you reach your goal of purchasing this house is to find a loan officer to guide you through the loan process. A knowledgeable loan officer will help you understand what needs to be done to get a loan processed quickly, will explore the many mortgage types with you, and will answer questions when they arise.

The Loan Process

It is important that the documentation required to process a loan is available at the initial meeting with your loan officer. Be prepared to disclose your employment history, credit history, bank statements, pay stubs, housing expenses, and tax records. You will also need to provide information about the house you wish to purchase. Your employer will be sent a verification of employment form and your banks will be sent a verification of deposit form. You will also be asked to fill out a loan application. All of this information will help the loan officer determine your financial situation which will help determine what mortgage type and interest rate you might receive.

Mortgage Types

Your loan officer will help you explore the many different types of mortgages available in Richmond, Kentucky. The most common types of mortgages are fixed rate and adjustable rate.

Fixed rate mortgages have no surprises. You will receive an interest rate at the beginning of the loan that will never change. Your mortgage payment will be the same every month for the duration of the loan. This loan type will not be affected by where you live or the economy.

Adjustable rate mortgages start out with a low interest rate, but when they reach an adjustment period the interest rate will change to the current rate. Depending on this rate, your mortgage payment could rise or fall. Typical adjustment periods are 1, 3, or 5 years.

The economy can have an affect on this type of loan.

Other possibilities available will be explained to you and together you will be able to determine which is right for you.

While waiting for your loan to be approved you may require answers to many questions. Keeping in touch with your loan officer will help alleviate any stress you may be feeling over uncertainty. Typical questions will include: “What interest rate will I receive?” “What fees will I be responsible for?” and “Who attends closing?”

Closing

After you have been approved for your loan, you will need to finalize the process at closing. This meeting is where you sign all the papers, pay applicable closing costs, make your down payment, and become a happy homeowner. Expect this meeting to last at least an hour.

Refinance and Home Equity Loans

If you already own a home in Richmond, Kentucky and require some financial assistance, you might want to consider a refinance loan. When you refinance, you replace your existing loan with a new loan. The main reason to refinance is to lower your mortgage payments. This can be accomplished by obtaining a lower interest rate, changing to a different term, or changing to a different mortgage type. With the lower mortgage payment, you will be able to use the extra money each month to help pay off your credit card bills, medical bills, or even help fund a family vacation.

If you have lived in your home for some time a home equity loan may work best for you. This type of loan allows you to borrow money on the equity you have earned in your home. This loan can be received either as a line of credit or a lump sum payment. You will only pay interest on the money you borrow. Home equity loans are usually for 10 or 15 years.

Fill out the form below to have one of our experienced loan officers discuss your mortgage, refinance, or home equity loan options in Richmond, Kentucky.

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Last Updated: Wednesday, May 23rd 2012