Once you have picked out your new home in Franklin Square, New York, you are ready to find a loan officer who you know will work to get the right mortgage for you. The initial meeting with your loan officer will help establish the reason you need a loan and show you the steps in the loan process. You will need to provide specific information to help the loan officer establish what type of loan best fits your circumstances and even how much money you will be able to borrow.
Documentation
An important part of this information is your employment history. A verification of employment form will be sent to your employer. If you have changed jobs within the last 2 years, a form will also be sent to your former employer. Your loan officer will also need your pay stubs and a written explanation of times when you were unable to work. If you are self-employed, additional documents will be requested. Your wages, along with your job status, will allow your loan officer to find a great mortgage package for you.
Another important part of your loan process is your financial history. A verification of deposit will be sent to all the banks you have accounts with. This information will show how well you manage your money. Your credit history, tax records, bank statements, W-2 forms, and information on mutual funds or 401K plans will also be helpful. If you have filed for bankruptcy in the past, then you will need a copy of your papers and discharge. All this information can help determine your interest rate, loan size and term, and payments.
The Loan Application
One of the most important steps in the loan process is filling out the loan application. To avoid delays, this form needs to be filled out completely and accurately. Along with the above employment history and financial information, you will need to provide your current housing history and expenses, proof of whether or not you receive child support or disability, where the money will come from to pay the down payment, if you have filed for bankruptcy, have tax liens or law suits, if you own other real estate, what your car payments are, if you owe on student loans, and what your credit card bills are.
Plan to allow at least an hour to fill out the loan application. Remember that the more complete this form is, the easier it will be for your loan to be approved. Also remember that it could take up to 30 days for the entire loan process to be completed, since written verifications and other documents necessary may not be available for at least 3 weeks.
Closing
The final step in the loan process takes place after you have been approved for your loan. Your loan officer will set the time for closing. At this meeting, you will sign many documents multiple times. You will be expected to pay your down payment and the closing costs with a certified check. You will receive the keys to your new home when closing is over.
Home Equity Loans
If you are in need of extra cash to help with your expenses, maybe a home equity loan is the answer. Using the equity you have earned in your home, you can qualify for a home equity loan. This loan is available either as a line of credit or a lump sum payment. You will pay interest only on the amount you borrow. This money is yours to use on whatever expenses you want. Why not pay off those credit card bills, education costs, or even take a family vacation?
Refinance Loans
A refinance loan also allows you to have extra cash to pay expenses. You apply for a new mortgage to replace your existing mortgage. This is especially helpful if you want to get a lower interest rate or a different loan type. Lowering your mortgage payment frees up money for unexpected medical bills, remodeling or repair of your home, or even car payments.
Let one of our experienced loan officers make the loan process a smooth and stress free one. Contact our office today to discuss your mortgage, refinance and home equity loan options in Franklin Square, New York.
