Are you ready to purchase a house in Drexel Hill, Pennsylvania? With the help of a knowledgeable loan officer, this important decision can be a smooth and stress free process.
At the first meeting with your loan officer, you will discuss what your needs are and the reasons you need a mortgage. You will be advised on what necessary documentation will be needed to start the loan process. Documentation will include your employment history, credit history, tax records, current housing costs, bank statements, and pay stubs. This information, along with the actual loan application, will allow your loan officer to establish how much money you will be able to borrow.
Your next step will be to discuss with your loan officer the mortgage types available and determine which type will work best for you and your family. There are many mortgage types on the market today. The most common mortgage types include fixed rate, adjustable rate, balloon, and interest only.
● Fixed Rate: A fixed rate loan will have the same mortgage payment for the duration of the loan. Your interest rate will never change. Typical mortgage terms are 15 or 30 years.
● Adjustable Rate: An adjustable rate loan starts out with a lower interest rate, but the interest rate changes at pre-determined intervals. At these times, your mortgage payment can go up or down depending on the interest rate at that time.
● Balloon: Balloon loans have the same mortgage payment every month but have to be paid in full at the end of 5 years.
● Interest-Only: An interest-only loan allows your mortgage payments to go towards interest for the first 10 years. The principal is added in at that time and your payments will go up.
Your next step is to be patient and wait. Soon you will receive the phone call letting you know that your loan has been approved. At this time, your loan officer will set up a time for closing. At this meeting, you will purchase your new home. There will be multiple copies of numerous documents that will need your signature. Make sure you ask questions and understand what you are signing. It will be necessary for you to bring payment for your closing costs and the down payment. This figure will be available to you before the meeting so you can bring a certified check in this amount. The meeting itself will probably take about an hour. Make sure you allow enough time just in case problems arise. At the end of closing, you will be handed the keys to your new house. You and your family can start preparing to move.
Refinance and Home Equity Loans
What if you already own a home in Drexel Hill, Pennsylvania? An excellent option available to you is a refinance loan. If you want to change the interest rate, term, or type of mortgage you have, this is the way to go. You will replace your initial mortgage with a new mortgage. This means that you will have to qualify for a loan by providing your personal and financial information and filling out a loan application. This is a great way to free up money that you can use for other expenses such as education costs, credit card bills, or even a family vacation.
Another option would be to borrow money on the equity you have earned in your home. You can either receive this home equity loan as a lump sum payment or as a line of credit. This money can help with medical expenses, remodeling or repair of your home, or to purchase a car. Interest is only paid on the amount you actually borrow. A home equity loan usually has a term of 10 to 15 years.
Contact our office today for help with a new mortgage, refinance loan, or home equity loan in Drexel Hill, Pennsylvania.
