You’re tired of renting. You’re ready to purchase your dream home in Allen Park, Michigan. What do you do next?
Find a loan officer – Your first step will be to find a loan officer. It is important to find someone you feel comfortable with because you will need to provide a lot of personal and financial information during the loan process. Since purchasing a home is one of the biggest decisions you will make in your lifetime, you will want someone who can guide you through the loan process. A knowledgeable loan officer can make this important decision easier and less stressful.
Provide documentation – At your initial meeting with the loan officer you will need to explain why you are in need of a mortgage. You will be informed of what personal and financial information will be necessary to help you qualify for a mortgage. This information will include your employment history, pay stubs, current housing costs, tax records, credit history, bank records, and other assets you might have. To obtain your employment history a verification of employment form will be sent to your current employer and past employer if you have worked at your present job for a short period of time. A verification of deposit form will be sent to the banks you have accounts with to show how you handle your money. You will also be asked to fill out a loan application.
Select a loan type – All of this information will allow your loan officer to determine how much money you will be able to borrow. Your loan officer will also be able to explain the many different types of mortgages on the market and especially types that will work for you and your family. The most common mortgage types are fixed rate, adjustable rate, interest-only, and balloon.
Many questions will arise during the loan process. Do not hesitate to contact your loan officer at these times. With his assistance, you will be able to understand the entire loan process.
Closing – You have received the phone call saying your loan has been approved in Allen Park, Michigan, and you are ready for the next step. Your loan officer will set up the final step in the loan process – closing. At closing, you will be asked to sign multiple documents, pay your down payment and closing costs, and leave the meeting with the keys to your new home.
Documents you will sign at closing will include a Truth in Lending statement, a monthly payment letter, the itemization of amount financed, note, and the mortgage. Make sure that you read and understand these before you sign them. Ask questions at this time. The exact amount of your down payment and your closing costs will be available to you before closing. You will need to get a certified check for this payment. This meeting should only last about an hour, but be prepared to stay longer.
Home equity loans and refinancing
What options are available to you if you already own a home in Allen Park, Michigan? Existing homeowners can benefit from either a home equity loan or from refinancing their existing loans.
You can use the equity you have earned in your home to qualify for a home equity loan. These loans can either be in the form of a line of credit or in a lump sum. This money is yours to use as you need for such things as education costs, medical bills, credit card bills, or even a new car. You only pay interest on the money you actually borrow. Home equity loans usually have a term of 10 to 15 years.
Refinancing your current mortgage is also a great way to come up with money to pay off bills, finance a wedding, or take a family vacation. Money saved by refinancing at a lower interest rate, which will make your mortgage payment lower, can be used for these or any other expenses you may have. You actually replace your existing mortgage with a new mortgage when you refinance. Keep in mind that you will have to provide the same personal and financial information and fill out a loan application to qualify for a refinance loan.
Let one of our loan officers assist you with your mortgage, home equity, or refinance loan needs in Allen Park, Michigan. Contact our office today.
