Do you own a home in Fridley, Minnesota? Existing homeowners are always in need of extra cash for paying off bills, remodeling their homes, or for new cars or family vacations. Why not consider a refinance loan or a home equity loan.
Refinance Loans
To obtain a refinance loan, you will go through the entire loan process from filling out the loan application to closing, as you are actually replacing your existing mortgage with a new mortgage. This is a great option if interest rates are lower now than they were when you got your existing mortgage or you want to change the type of mortgage you have or its duration. If you have an adjustable rate loan, and interest rates are rising, then changing to a fixed rate loan will lock in your interest rate until the loan is paid off. Lowering your mortgage payment is a great way to free up money you can use for other things.
Home Equity Loans
And then there is always the home equity loan. This is an excellent option, especially if you have lived in your home for a while. The equity you have earned in your home can be used to borrow money. Equity is the difference between the value of your home and how much you still owe on the mortgage. Home equity loans typically have durations of 10 or 15 years. You can receive this money either in a lump sum payment or a line of credit. This money is yours to use as you please. You will pay interest only on the amount you borrow.
The Mortgage Process
If you are looking for a new home in Fridley, Minnesota, then you have many mortgage packages to choose from, especially if you are a first time buyer. Finding an experienced loan officer to work with will help you sort through the many options available to you. Be prepared to provide a lot of information at the initial meeting with your loan officer. You will be asked to fill out a loan application and provide the necessary documentation to help with the loan process. This will include your employment history, credit history, current housing expenses, tax records, and pay stubs. Your employer will be sent a verification of employment form and your banks will receive verification of deposit forms. Because much of the information needed has to be verified in writing, expect the loan process to take 3 to 4 weeks.
Your loan officer will inform you of the mortgage types available to you in Fridley, Minnesota. These will include fixed rate, adjustable rate, interest only, and balloon loans. The information you provide will help your loan officer determine how much you will be able to borrow, what interest rate you will be able to get, and the duration of the loan.
Waiting to hear if you have been approved for a loan can be a stressful time, but keeping in touch with your loan officer will help. Do not hesitate to ask your loan questions that arise during this time. These could include:
● What is the current interest rate? Interest rates can change daily. Your loan officer will be able to keep you up to date on the current rate.
● What fees will I need to pay? Applicable fees could include appraisal, loan processing, and closing costs. Your loan officer will let you know which fees you are expected to pay.
● What happens at closing? Closing is the final step in the loan process. This is where you will sign the documents to finalize the purchase of your home. At the end of this meeting you will be handed the keys to your new home.
We want to help you with your lending needs in Fridley, Minnesota. Contact our office today by filling out the form below. Let one of our knowledgeable loan officers help you with your mortgage, refinance, or home equity loan selection.
