Mortgage Types
There are many types of mortgages on the market today. Common types are fixed rate, adjustable rate, balloon, and interest only.
● A fixed rate mortgage will allow you to have the same mortgage payment every month for the duration of the loan. This mortgage type works well for families that need to keep on a budget.
● Adjustable rate mortgages will have a mortgage payment that can change to the current interest rate at specific predetermined intervals. The initial interest rate will be low and the intervals are typically 1, 3, or 5 years.
● Balloon mortgages have low interest rates but need to be paid in full in 5 years. If you expect your family’s income to increase in the next few years this mortgage may work for you.
● Interest only mortgages will allow you low mortgage payments for the first 10 years as you will only be paying the interest. Obviously, when the principal is added in your mortgage payments will rise.
There are many other types of mortgages available that look at specific circumstances, such whether or not you are a veteran or if you have physical handicaps. First time buyers also have options that others do not. Seek the help of a competent loan officer to help you understand all your options in Puyallup, Washington.
Loan Officers
If you do your research and find a knowledgeable loan officer who you feel comfortable working with, the selection process will go smoothly. All of your circumstances will be taken into consideration to help find the best mortgage for you and your family’s financial situation.
Loan Process
Your loan officer will advise you on the necessary documentation you will need to provide to start the loan process. A Verification of Employment will be sent to your current employer. If you have changed jobs in the last two years, your previous employer will also receive a form. This form will show your job stability. Your banks will receive a Verification of Deposit form. This form will show how well you handle your money. Other documents will include pay stubs, tax records, current housing costs, credit history, and information about any other assets you might have. This information will help to determine how much money you will be able to borrow.
Questions You May Have
Do not hesitate to ask your loan officer any of the numerous questions that will arise during the loan process. You will want to know the current interest rate, how long it will take to process the loan, what fees you will be responsible for, who attends closing, and when you can move into your new home. Your loan officer will be able to monitor the progress of your loan process and keep you informed.
Are You Already a Homeowner?
Do you already own a home in Puyallup, Washington and want to know what your options are? You have the choice of either obtaining a refinance loan or a home equity loan.
A refinance loan is a loan that replaces your existing mortgage. You will benefit from changing loans if the current interest rate is lower than your existing rate or if your existing mortgage is an adjustable rate mortgage and you anticipate a rise in interest rates. Since you are applying for a new loan, you will need to go through the entire loan process to refinance. Your lower mortgage payments will free up money that you can use to pay off credit card bills, medical expenses, college tuition, or for remodeling or repair of your home.
Home equity loans allow you to borrow on the equity you have earned in your home. You can receive this loan either as a lump sum payment or a line of credit. A home equity loan has a low interest rate and you will only pay interest on the amount you borrow. Home equity loans have typical durations of 10 to 15 years. This money is yours to use as you wish.
Contact our office today to discuss your lending needs in Puyallup, Washington with one of our knowledgeable loan officers.
