Have you got questions regarding a new mortgage, refinance loan, or home equity loan in Wildwood, Missouri? An important step in the loan process is to find an experienced loan officer to assist you. Loan officers will be able to explain the loan process to you, inform you of the various types of mortgages on the market today, and help you get qualified for a loan in a timely manner.
At your initial meeting with your loan officer, you will provide basic information about why you need a mortgage. You will fill out a loan application and your loan officer will instruct you on what documentation will be necessary to get the process started. You will have to provide both personal and financial information, including your credit history and current housing costs. A Verification of Employment form will be sent to your employer and a Verification of Deposit for will be sent to your banks. The loan application and all of these documents will help determine how much money you will be able to borrow.
Be patient during this time, as it may take awhile for all the documentation to get to the loan officer and then the analysis will begin. Your loan officer will keep you informed of the progress of the application. Do not hesitate to ask questions that may arise during this time.
Mortgage Types
With so many mortgage types available, it is important to be educated on the basics. A fixed rate mortgage will have the same interest rate for the term of the loan which usually is 15 or 30 years. Your mortgage payment will be stable throughout the term. The interest rate with an adjustable rate mortgage can change depending on the interest rate at specified intervals. Your mortgage payment may rise or fall at these 1, 3, or 5 year intervals. Balloon mortgages have to be paid in full at the end of 5 years but usually have a low interest rate. Interest only mortgages will have lower mortgage payments for the first 10 years of the loan because you will only be paying the interest, but when the principal is added your payment will go up. Your loan officer will know of even more mortgage packages available. One of them will fit your lending needs.
Refinance and Home Equity Loans
Wildwood, Missouri homeowners have two options available to them: refinance loans or home equity loans.
A refinance loan will allow you to replace your initial mortgage with a new mortgage that has terms that are more favorable to you. A new, lower interest rate will free up money to help pay expenses such as medical bills or credit card bills. Since you are replacing your existing loan with a new loan, you will have to fill out a loan application and provide the documentation necessary to apply for a loan.
Home equity loans are a great tool for existing homeowners to use the equity in their home to borrow money. You can either get a lump sum payment or a line of credit. Home equity loans usually have 10 to 15 year terms. You can use this money for anything from a new car to remodeling or repair of your home.
Closing
The final step in the loan process is closing. At this meeting you need to be prepared to sign your name multiple times. Ask questions if you do not understand the documents. Double check the figures. You will need to present a certified check to pay for the closing costs and your down payment at this time also. Plan to spend some time at this meeting.
One of our experienced loan officers will be able to help you with your lending needs in Wildwood, Missouri. Contact our office today.
