Need information on mortgages, refinance loans, or home equity loans in Suitland, Maryland? Your first step is to find a loan officer. You will have many questions during the process of researching what type of loan to obtain. When these questions arise, your loan officer should be available to answer them. Do not hesitate to ask questions. Some common questions include:
What interest rate will I pay?
What information do I need to provide?
What will my down payment be?
What happens at closing?
What is a refinance loan?
What is a home equity loan?
What interest rate will I pay?
Your interest rate will depend on the type of loan you choose. A fixed rate loan will allow you to lock in a specific interest rate for the duration of the loan. This means that your monthly mortgage payment will never change. With an adjustable rate loan, your interest rate can change depending on the current interest rate at the predetermined intervals of the loan. Your mortgage payment can go up or down at this time. Other options include a balloon loan, which has a low interest rate but has to be paid in full in five years or an interest only loan, which allows you to pay only the interest for the first ten years of the loan.
What information do I need to provide?
Various documents will need to be presented to start the loan application process. These will include a Verification of Employment form which will be sent to your employer, a Verification of Deposit form that will be sent to your banks, pay stubs, tax records, monthly housing costs, and information regarding other assets you may have. This information, along with the application form, will enable the lender to determine how much you will be allowed to borrow. Because of the nature of this information you will want to find a loan officer you feel comfortable with and who you can trust with these documents.
What will my down payment be?
Your down payment is a percentage of the purchase price of the home. Down payments can range from 0% to 20%. You will need to be prepared to pay the down payment at closing with a certified check.
What happens at closing?
Closing is the final step in the purchasing of a new home, refinancing your existing home, or establishing a home equity loan. Plan ahead so you set aside enough time for this meeting. It will usually last around an hour but can often last longer. You will be asked to sign numerous documents, all of which you should double check before signing. Do not be afraid to ask questions. Your certified check should include both the closing costs and the down payment. To make this meeting less stressful, plan to get lots of sleep the night before and come to the meeting with a smile on your face.
If you already own a home in Suitland, Maryland you may be ready to obtain either a home equity loan or a refinance loan.
What is a refinance loan?
A home equity loan helps you borrow money on the equity you have earned in your home. This money can be either in the form of a lump sum or a line of credit. You pay interest only on the amount you borrow. This money could come in handy if you experience unexpected medical bills, need to pay off credit card bills, have education costs, or even for a new car.
What is a home equity loan?
If interest rates are lower now than when you initially purchased your house, then a refinance loan can help you reduce your mortgage payment each month. The money saved will then be available for other expenses, such as a family vacation or paying off other debts. Refinancing replaces your existing loan, so you will need to complete the entire loan process from loan application to closing.
Let our experienced loan officers help you with your lending needs. Call our office today to make an appointment.
