Are you a first time homebuyer in Oak Ridge, Tennessee? If so, you need to find a knowledgeable loan officer to answer your questions and guide you through the loan process. That is why it is important to find a loan officer who you are comfortable with and who you can trust with the information you will need to provide to get the loan process started.
The Loan Process
Your first meeting with the loan officer will probably take about an hour. During this time you will provide information about the house you want to purchase and be asked to fill out the loan application. To make sure there are no delays in the loan process, fill this form out completely and accurately. Necessary information will include your employment history, pay stubs, bank statements, credit card history, tax records, current housing costs, and other assets. Your employer will receive a verification of employment form to show that you are working and your banks will receive a verification of deposit form to show how well you manage your money. Since all of the documentation needs to be in written form, the entire loan process can take from 3 to 4 weeks.
Mortgage Types
Your loan officer will also help you understand the many different mortgage types available in Oak Ridge, Tennessee. The two most common mortgage types are fixed rate and adjustable rate.
The benefit of a fixed rate loan is that your mortgage payment will never change for the duration of the loan. You will lock in your interest rate at the beginning and it will never change. A fixed rate loan is not affected by the economy or by where you live. A typical fixed rate loan term is usually 15 or 30 years. This is a great choice if you need to stay on a budget.
With an adjustable rate loan the typical benefit is the lower interest rate in the beginning. This rate can change when the loan reaches an adjustment period depending on the interest rate at that time. The current interest rate will determine if your mortgage payment goes up or down at that time. This loan works well for those who are trying to get into the housing market, since your beginning mortgage payment will be low.
There are other types of mortgages on the market today that might work for you and your family. Your loan officer will be able to explain them to you and help you make your selection.
During the loan process many questions will arise. It is important for you to keep informed, so do not hesitate to call your loan officer for answers.
Refinance and Home Equity Loans
Oak Ridge, Tennessee homeowners who are in need of extra cash might want to check out either refinance loans or home equity loans.
A refinance loan is a loan that replaces your existing loan. Since it is a new loan, you will have to go through the loan process again. Obtaining a new loan also means you can choose a different mortgage type with a new interest rate and duration. When refinancing, your goal is to end up with lower mortgage payments. With lower mortgage payments, you will have money left over every month to help pay your credit card bills, education costs, or even buy a new car.
Home equity loans are a great way to borrow money from the equity you have earned by living in and paying for your home. Equity is the difference between the value of your home and how much you still owe on it, so the longer you live in your home, the more money you will able to borrow. You can choose to receive this loan as either a line of credit or a lump sum. Interest will only be paid on the amount you borrow. Home equity loans have terms of 10 or 15 years. Why not consider remodeling or repairing your home, planning a family vacation, or starting up a new business?
Let one of our experienced loan officers help you with your refinance, mortgage or home equity loan needs in Oak Ridge, Tennessee today. Fill out the form below to get the loan process started.
