One of the most important decisions you will make in your lifetime is the purchase of a new home. With the help of an experienced loan officer who can guide you through the loan process, you and your family will be moving into your new home in Monroeville, Pennsylvania in no time.
Mortgage Selection
There are many types of loans available for first time buyers. Your loan officer will be able to explain them to you and help you determine which will work best for you. The most common mortgage types include fixed rate, adjustable rate, balloon, and interest only.
Fixed rate loans will have the same interest rate for the duration of the loan.
This allows you to have the same mortgage payment every month. The most common terms for fixed rate loans are 15 or 30 years.
Adjustable rate loans can have interest rates that change at intervals of 1, 3, or 5 years. Depending on the interest rate at these times, your mortgage payment can go up or down.
Balloon loans have a low interest rate, but payment in full is expected at the end of 5 years.
Interest-only loans allow you to pay only interest for the first 10 years. The principal is added in at that point, and your mortgage payments will increase.
The Loan Process
Your loan officer will instruct you on what documentation is necessary to start the loan process. You will need to provide a lot of personal and financial information. This information will include your employment history, your current housing costs, tax records, credit history, and bank statements. You will also be asked to fill out a loan application. All of this information will help the loan officer determine the amount of loan you can afford.
Questions to Ask
Questions will arise during the loan process. Do not hesitate to ask your loan officer when you need answers. Common questions might include: What is the current interest rate? What fees do I have to pay? How long before closing? What happens at closing?
What do I need to bring to closing?
Closing
The final step in the loan process is closing. At this meeting you will need to pay your down payment and closing fees. You will need to be prepared to do this with a certified check. The exact amount will be available to you prior to the meeting. You will also be asked to sign your name multiple times on numerous documents, which will include the note, the mortgage, a Truth in Lending statement, and a monthly payment letter. Make sure you understand all the documents before signing them. It is also important to double check all the figures. At the end of this meeting, you will be handed the keys to your new home.
Options for Existing Homeowners
If you already own a home in Monroeville, Pennsylvania, you may want to check into either a home equity loan or a refinance loan. Both of these options will give you money to help with your current expenses, such as medical bills, education costs, remodeling, or even a family vacation.
Obtaining a refinance loan allows you to replace your existing loan. This is especially beneficial if the interest rate is lower than the interest rate on your existing loan. This will obviously lower your mortgage payment. You can also switch to a different mortgage type. Even if you have refinanced in the past, it can be beneficial for you to refinance again.
If you have lived in your home for a while, you can borrow money on the equity you have earned. Equity is the difference between the value of your home and how much you still owe on the loan. A home equity loan can be either in the form of a line of credit or a lump sum. Home equity loans usually have low interest rates and a term of 10 to 15 years.
Call our office today to discuss your mortgage, refinance, and home equity options in Monroeville, Pennsylvania with one of our experienced loan officers.
