What is the next step after you have found the home of your dreams in Kirkwood, Missouri? You will want to get the assistance of a knowledgeable loan officer to help you understand and guide you through the loan process.
Initial Meeting
At the initial meeting with your loan officer, expect to answer a lot of questions. Your loan officer will need to get to know you and your situation to help determine how much money you will be able to afford and what type of mortgage will work best for you. The loan application will be filled out at this time. This important form needs to be filled out accurately so that there are no delays in the loan process. Documentation you will need to disclose will include your employment history, pay stubs, bank statements, credit history, housing costs, and any other assets you might have. Your employer will fill out a verification of employment form and your banks will fill out a verification of deposit form. Since the information requested needs to be verified in writing, expect a wait of 3 to 4 weeks before your loan is approved.
Mortgage Types
Your loan officer will also explain the many different types of mortgages available in Kirkwood, Missouri. Together you can find one that works for you. The two types of loans you hear the most about are fixed rate and adjustable rate but your loan officer will also have information about the other types you can choose from.
A fixed rate loan is great for those who need to stay on a budget, as it will have the same mortgage payment every month for the duration of the loan. The interest rate will never change, even if the market or economy does.
An adjustable rate loan has the advantage of a low initial interest rate, but this rate can change when the loan reaches an adjustment period. At this time, your mortgage payment can rise or fall depending on the current interest rate. Typical adjustment periods are 1, 3, or 5 years.
Final Step
After you have been told your loan has been approved, your loan officer will set up the final step in the loan process – closing. At this meeting, you will purchase your home. You will be asked to sign your name to multiple documents, make your down payment, and pay for closing costs. Expect this meeting to last at least an hour. After the final document is signed and the money is collected, you will be handed the keys to your new home.
Options for Existing Homeowners
Existing homeowners have two choices to help them with their financial situations. They can obtain a refinance loan or a home equity loan.
● Refinance loans are used to pay off existing loans. You go through the entire loan process to secure a new loan. Your goal is to change the mortgage type, interest rate, and loan duration to your benefit. Lowering your mortgage payment will give you extra money that you can use for unexpected medical bills, education expenses, or even a family vacation.
● Home equity loans provide you with money that you borrow from the equity you have earned in your home. Equity is the difference between the amount you owe on your loan and the value of your home. Home equity loans typically have durations of 10 or 15 years. You can opt to get this loan either as a line of credit or as a lump sum. Your home equity loan will give you money to pay your credit card bills, for remodeling, or even for a new car.
Fill out the form below for information regarding refinance, mortgage or home equity loans in Kirkwood, Missouri. One of our knowledgeable loan officers is ready to work with you.
