Ready for the slower pace of the Midwest? If so, Akron, OH, may be the perfect location for your new home. Just sixty miles west of the Pennsylvania border, Akron plays host to the University of Akron and a minor league baseball team. Nearly seven hundred thousand people call the metro area home, and both Goodyear and Firestone tires companies have plants in Akron. With a great school system and lots to do, consider Akron, OH for your next home, but think about getting pre-approved for a mortgage before you do.
Pre-approval for a mortgage is your best bet as you start to shop for homes because not only will it give you a much better idea of how much you can afford, it will also let buyers know that you are serious about purchasing their home. They will be nearly twice as likely to select a candidate who has financing in place over one who does not.
What Does Pre-approval Involve?
Pre-approval for an Akron, OH, mortgage primarily involves documenting that you can pay for the mortgage you are interested in. The first step in pre-approval is deciding on the type of loan that is right for you. In Akron, most individuals choose between fixed rate and adjustable rate mortgages. Fixed rate mortgages have a higher initial interest rate, but that rate is locked in during the life of the loan. Your payments will never change during the entire fifteen or thirty year term.
Adjustable rate loans have lower payments for the first few years, but after that, they are free to adjust according to your lender’s index, the market’s fluctuations, and the caps set by your lender. Keep in mind that as the mortgage market has expanded, so have the types of loans available to borrowers, so if these two types do not work for you, talk to your lender about other options.
When you have talked with a lender about the types of loans that might be right for you, you will need to submit some paperwork so that your lender can verify that you can afford the loan. Your lender will need to see a median household income, which can be established by submitting your federal tax returns for the last two years. Your lender will also need to see a steady work history. You can establish this through your W-2 forms for the last two years. If you are self-employed, submitting your 1099 forms should work out just as well. You will also need to submit bank statements, pay stubs, and cancelled rent or mortgage checks for the last two months. Once this information is in place, and your lender has completed a credit check, your funding should be in place to start looking for a home.
Refinancing
If you already have an Akron, OH, mortgage, you may be ready for a refinance loan. This is essentially like applying for a new mortgage on your house. You will have to choose a new loan, a new rate, and a new term. You will also have to choose whether or not you want to cash-out the equity you have already built up in your home. This is a nice option, as it provides you a bit of extra money that you may need to pay other bills, fund your child’s education, or take a dream vacation. Keep in mind that unless you apply for a no documentation loan, you will have to submit all of the same paperwork you did to get your initial mortgage.
A Home Equity Loan
If the idea of cashing out your equity is an attractive one, but you do not like the idea of changing your mortgage, a home equity loan may be a better choice. You will get your money in a lump sum, and you will begin to pay interest on that money as soon as you receive it. If you would like a bit more freedom, ask about a home equity line of credit. You can get the same amount of money, but you will have the choice of whether or not you want to borrow it all at once. You will pay interest only on the money that you borrow.
Whether you are looking for an Akron mortgage, refinance, or home equity loan, we can help. Take a moment to fill out the form below, and a qualified lender will contact you right away.
