Auburn, New York is a city in Cayuga County and has just below 30,000 residents. Auburn is the county seat of Cayuga County and is home to the Auburn Doubledays, a minor league baseball team. The City of Auburn, New York was founded in 1793 by a veteran of the American Revolution. Auburn is located north of Owasco Lake, which is one of the Finger Lakes, and south of Lake Ontario.
Are you ready to move to Auburn, New York? Have you just been waiting for the right time? Well, this is it. Do you already live and have a mortgage in Auburn and have been thinking about a refinance option for your mortgage? The time is here for that, too. What about a home equity loan? Read on to discover that path leading to those opportunities.
The Loan Process
First, you need to find a lender and begin the pre-approval process. This will establish yourself as a serious buyer. To begin with, you will need to present the following documentation to your lender:
(1099 forms if you are self-employed)
Your lender will also run a credit check on the background of your payment history, to establish how well you have handled your finances in the past. This process will result in a credit score. Your credit score is an important factor in determining the amount of money you will be able to borrow.
Also an important and determining factor is the analysis of your financial resources. Your lender will look to see how much debt you currently are in possession of and the amount of money your monthly bills consume. This amount will be assessed with the amount of income you receive. Your lender will want to be sure you will be able to afford your monthly payments. This analysis will result in a ratio, and your lender would prefer you do better than break even each month.
Your liquid finances are another consideration. Your lender would like to see you have some amount of money available to you for any emergencies that may periodically arise. Often, your lender will look at 60 days prior to your application for a loan to determine what your liquid finances have been.
An appraisal will need to be conducted whether you are looking to refinance, are applying for a new mortgage, or are considering a home equity loan, to determine the value of the property. A licensed appraiser, following government guidelines and procedures, can perform this appraisal for you. If you choose to hire you own appraiser, you will likely spend a few hundred dollars for this service.
Following completion of the pre-approval process, you will need to decide on the type of mortgage that suits you best. Many alternatives exist, but the two most common are fixed rate mortgages and adjustable rate mortgages. Let’s take a brief look at those.
A fixed rate mortgage allows you to “lock into” a specific interest rate that will remain with your loan for its duration. By having a fixed interest rate locked in, you will also have your monthly mortgage payment locked in. Your interest rate, your monthly mortgage payment, and the term of your loan will never change, regardless of any fluctuations in the economy or market indexes.
An adjustable rate mortgage (or ARM) allows you to begin your loan with a lower interest rate for the first few years. After the first few years, your interest rate will be free to change, or adjust, with market conditions and economic variations. This type of mortgage allows you to save money in the beginning months of your loan term. After that, your monthly mortgage payment will change with the adjustment of your interest rate. The term of your loan may possibly change as well.
An option is available to meet your needs. To find out more about a refinance options for your mortgage. how to begin with a new mortgage, or about a home equity loan, simply fill out the form below.
