Shaker Heights is a peaceful suburb just under 10 miles from downtown Cleveland. Being so close to Cleveland gives the residents of Shaker Heights access to all of the big city fun and activities without having to deal with all of the hustle and bustle.
The tree-lined neighborhoods in Shaker Heights show off some of the most charming homes available in Ohio. Residents feel free and safe in this suburb. Many take time out of their days to walk and talk with neighbors. Truly, this is a one of a kind area with unlimited real estate potential. Unless you are already fortunate enough to live in Shaker Heights, there is a good chance that you have considered moving there. If the complicated mortgage application process has discouraged you, the following addresses some common concerns. People who are looking to refinance or take out a home equity loan have most likely run into some of the same concerns.
Many people tend to forget this step, but it happens to be one of the most important. Pre-approval involves more then just finding out what your budget is. The pre-approval gives you an idea of what state your finances are really in.
Before you even talk to a lender about pre-approval, you are encouraged to pull a copy of your credit report. The credit report is one of the many tools used by lenders to determine what type of borrower you will be. People with great credit scores are considered low risk and qualify for prime interest loans. Those with lower credit scores can only qualify for sub-prime interest rates. The difference between prime and sub-prime can mean tens of thousands of dollars. By pulling your credit report, you will be able to see if there is anything that will lead to you being considered a credit risk. If there are any late payments or collections listed, these will definitely affect your score. Look out for errors too. If you do find any errors, report them immediately to have them removed.
Next you will need to determine what your sources of income are. If you are self-employed, be prepared to show tax information for the past several years. Any assets you have that can be claimed should also be listed. Bonds are usually considered good assets to have in your portfolio. Take all of this information to your lender, and they will begin the pre-approval process.
Homebuyers looking for a first mortgage aren’t the only ones who will benefit from the pre-approval process. If you are trying to refinance or obtain a home equity loan, you will also want to see what kind of rates you are quoted. Don’t just assume that your current lender is giving you the best deal. Speak with lenders and brokers to get a wide range of quotes.
If you have made the mistake of asking friends or family about mortgage loans, you will hear just about every side of the fixed versus adjustable rate debate. You will hear one hundred reasons why a 15-year loan is better then a 30-year term and so on. Some points are valid, and some are not. In the end, it all comes to down to weighing your options. What are your goals? Will you be living in this home for several years? If you are trying to refinance or get a home equity loan, are you trying to improve your home with the goal of selling it? The answers to these questions will ultimately determine how you should proceed.
If your budget allows for it, try for a shorter term. You will pay less interest and will gain equity in your home much more quickly. Adjustable rates carry lower interest rates for the first few years and will eventually fluctuate with federal interest rates. It is possible to refinance after a few years if the interest rates are too high.
These issues are just the tip of the iceberg. Simply fill out the form below and a trained professional will help you through the process.
