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FINANCING
Obtaining a loan can be complex and confusing for
most people. Our NC realtors at Smoky Mountain Getaways can help guide you through this process
from recommending lenders to funding at closing.
Below are some articles you might find useful.
Be
Prepared
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Gather Your Financial Documents
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Bank Accounts
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Investments
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Credit Card
Statements
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Loans
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Recent Pay Stubs
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2 Yrs. Tax
Returns
Credit Rating
A higher
credit score may mean a lower interest rate on your
mortgage.
Below is contact information for credit
reporting agencies.
Your lender can give you advice on how to
raise your credit score if needed.
No Major Changes
Try to keep your payments down.
Put closing costs and additional costs such
as inspections at the top of your priorities.
But also try to keep in mind paying off any
credit card debt. Now is not a good time to make
career changes or make large financial purchases.
Lenders like stability.
Shop
Around
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Your mortgage is something that you may have to live
with for 30 years, so spend time comparing and
choosing a lender.
There are several things to consider when
choosing a lender.When searching for a lender, consider their prices,
if they have loans that meet your needs and if you
can work well with them.
Loan Types
Fixed Rate:
The most frequently used plan, the fixed rate
mortgage requires that you pay a constant amount,
usually monthly.
This type of mortgage first credits each
payment to the interest due and then applies the
balance to reduce the remaining principal.
Over time as the repayment of the principal
grows the interest declines.
Adjustable Rate
Mortgage:
With an Adjustable Rate Mortgage (ARM)
you start paying one interest rate that will usually
fluctuate up or down over time.
Because the interest may change so may your
mortgage payments.
Generally, interest rate adjustments are limited to
one per period, and a set maximum amount of
increases may be made over the life of the loan.
The borrower is usually given the right to
repay the loan in full without penalty whenever the
interest rate changes.
VA Loan:
This type of government loan is available to veterans who have
served in the U.S. Armed Services and, in certain
cases, to spouses of deceased veterans. The
requirements vary depending on the year of service
and whether the discharge was honorable or
dishonorable. The main benefit to a VA loan is the
borrower does not need a down payment. The loan is
guaranteed by the Veterans Administration, but
funded by a conventional lender.
Pre
Approved
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Pre –
Qualification
The lender will make an assessment based on
information such as employment, income, assets,
monthly debt and credit.
The lender will make a decision to
pre-qualify you for a certain loan amount.
This is however just an opinion and the
lender is not committed to any amount.
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Pre – Approval
Pre-Approval is very similar to pre-qualification in
that the lender will give you your buying capacity
based on income.
However, pre-approval is a longer and more in
depth process but will give you a more clear and
definitive guarantee on how much money you’re
entitled to borrow.
Funding
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Signing
This is the easiest part of the entire process.
Your lender has agreed to fund your loan and
now signing can start.
But before you sign make sure to verify and
finalize all documents.
Your loan documents are usually signed in the
presence of a notary or an escrow officer.
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Transferring
Funds
Your payment will either be automatically deducted
or wired.
Make sure that all important numbers are
corrected for accuracy of both parties.
Your Loan Is Now
Funded!
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