Many people fear the process of applying for a loan, particularly a mortgage; however, this process doesn’t have to be as tough as people make it sound. When someone is going to meet with their loan officer Oak Ridge, it is important to be prepared.
If people enter the room sounding like they have done their research, the process will move along faster and with fewer hiccups along the way. With this goal in mind, what are some of the things that everyone should remember when they are going to discuss mortgage loans with their loan officer?
Understand The Types of Mortgages Available
There are many different types of mortgages that are available, and it is important to understand some of the differences. Mortgages can vary in their:
- Length of time, such as a 15-year fixed, or a 30-year fixed
- Interest rates, which can either be fixed or variable
- Points due at signing, which is interest paid up front
Do some research and understand which mortgage works best for your family.
Note the Average Interest Rates
It can also be helpful to enter the room knowing what the average interest rates are for the various types of mortgages. This will help people understand what a reasonable request might be and what is a pipe dream given the current market.
The Down Payment
Understand how increasing or decreasing the size of the down payment will impact the interest rate on the mortgage and, ultimately, the amount of money paid over the life of the mortgage. Know what the family has set aside for the down payment as well. This will impact how much home you can afford.
In the end, discussing a mortgage can be an easier process by following some of the tips above. In this fashion, people will appear more prepared and could even be more likely to get the deal that they deserve. Contact a professional loan officer Oak Ridge today to learn more!