Tired of renting in Farmers Branch, Texas? Now is a great time to consider buying your first home. The decision to buy a house will be one of the biggest decisions you will make in your lifetime. This purchase will probably require you to obtain a mortgage.
Applying for a Loan
A knowledgeable loan officer will help you to obtain the mortgage that will be right for you and your family. To qualify for a loan, you will need to disclose a lot of personal and financial information. This information will be submitted at the first meeting with your loan officer. The necessary documents will include your employment history, credit history, tax records, housing costs, bank statements, pay stubs, and other assets. Along with all of this documentation, your loan officer will ask questions to get to know you better and to determine your loan needs. You also will be asked to fill out a loan application at this time. This form needs to be completed in its entirety and done accurately. Any omissions will cause delays in the loan process. Since a lot of the information needed has to have written verification, you can expect the loan process to take from 3 to 4 weeks.
Mortgage Types
Also during this initial meeting, your loan officer will explain the various mortgage types to you. The most common mortgage types are fixed rate and adjustable rate.
● Fixed rate mortgages have the same interest rate throughout the duration of the loan. This will allow you to have the same mortgage payment every month until the loan is paid in full. This type of mortgage works well for those who need to stay on a budget.
● Adjustable rate mortgages have set adjustment periods that are typically 1, 3, or 5 years. This mortgage starts out with one interest rate, but the rate can change to the current interest rate when it reaches an adjustment period. At this time your mortgage payment can go up or down. The advantage to this type of mortgage is the low interest rate at the beginning of the mortgage.
Your loan officer will have information on these mortgage types and other mortgage packages available in Farmers Branch, Texas. Working together with your loan officer, you will find the mortgage that fits your financial situation.
Closing
You have been notified that your loan has been approved and now you are ready to close the deal. Your loan officer will set up your final meeting in the loan process – closing. At closing you will be expected to pay your down payment and any closing costs that are applicable. You will also sign your name multiple times. Make sure you understand each document as it is presented to you before you sign it. After every document has been completed, you will be handed the keys to your new home.
Home Equity and Refinance Loans
If you are already a homeowner in Farmers Branch, Texas and are in need of some financial help, you might want to consider obtaining either a home equity loan or a refinance loan.
Home equity loans allow you to borrow money from the equity you have earned in your home. This equity is the difference between what you owe on your loan and the value of your home. You have two forms to choose from with this type of loan – a line of credit or a lump sum payment. You will pay interest only on the amount you actually borrow. Home equity loans usually have a shorter duration of 10 or 15 years. You can use this loan to help pay off your credit card bills, unexpected medical bills, or even to purchase a new car.
A refinance loan replaces your existing loan. Because of this, you will go through the entire loan process from filling out the loan application; picking a new mortgage type, interest rate, and duration; and attending closing. Even if you have refinanced your loan in the past, you can benefit from doing it again, especially if interest rates have gone down. With your mortgage payment lowered, you will have extra cash available to use for education costs, start up for a new business, or maybe a family vacation.
Fill out the form below to contact one of our loan officers today to discuss your lending needs in Farmers Branch, Texas.
