You have been looking in East Cleveland, Ohio for months and you finally found the perfect house for you and your family. To guide you through the loan process, you need to find an experienced loan officer. A loan officer can explain the process to you and help you understand the many mortgage types available.
The loan process begins with you providing information to your loan officer. Your loan officer will get to know you by asking questions about the house you wish to purchase and your financial situation. Both personal and financial information will be needed to fill out a loan application. Other documentation you will need to provide will include bank statements, tax records, housing expenses, employment and credit history, and pay stubs. The loan application and this documentation allows the loan officer to determine how much you will be able to borrow and will even effect the interest rate you will get. Written verification is needed to process the loan, so expect a wait of 3 to 4 weeks.
Types of Mortgages
Your loan officer has the expertise to help you select the loan that will fit your needs. The loans you hear the most about are fixed rate and adjustable rate. A fixed rate loan allows you to make the same mortgage payment for the duration of the loan because the interest rate never changes. Loan durations are typically 15 or 30 years. An adjustable rate loan has the possibility of fluctuating mortgage payments because the interest rate can change when the loan reaches an adjustment period. The interest rate at the time of an adjustment will be applied to the loan. There are many other types of loans on the market in East Cleveland, Ohio. Exploring all the possibilities with your loan officer will help you make the right choice.
Questions
During the loan process, you will have many questions. It is important to keep in contact with your loan officer during this time. Common questions include:
What is the current interest rate? Since your mortgage payment will be influenced by the interest rate you get on your loan, this is an important factor. Your loan officer will be able to keep you informed of the changes that can occur every day.
What fees am I responsible for? Fees can be charged for the appraisal, application, credit report, preparation, and closing. Your loan officer will inform you of what you need to pay.
What happens at closing? Closing is when you meet to finalize the purchase of your home. You will sign your name to multiple documents and make your down payment at this time. You will own your house when the meeting is over.
Options for Existing Homeowners
If you are a homeowner in East Cleveland, Ohio and want to change your mortgage payment, you have two choices: a refinance loan or a home equity loan.
Your goal when refinancing is to obtain a lower mortgage payment. A refinance loan allows you to pay off the mortgage you already have and to get a new mortgage. Be prepared to go through the same loan process as before. This type of loan is especially helpful if the interest rate is lower now than what you have on your existing loan. Maybe you have an adjustable rate loan that is nearing an adjustment period and the interest rates have risen. Whatever change is made to lower your mortgage payment, the extra money you have every month can be used to help you pay off unexpected medical bills, college expenses, or credit card bills.
If you choose a home equity loan, you will be able to borrow money on the equity you have earned in your home. The equity is the difference between the amount you owe on your home and the value of the home. Home equity loans are usually for 10 to 15 years and can either be in the form of a line of credit or a lump sum payment. You will only pay interest on the amount you borrow. You can use the equity you have earned to help pay for remodeling, start up a new business, or even purchase a car.
Fill out the form below to have one of our loan officers discuss your refinance, mortgage and home equity loan needs in East Cleveland, Ohio.
