When purchasing a home in Union County, North Carolina, securing a mortgage is almost always necessary; however, the process of getting a loan can be complicated and the loan itself has many features which must be considered. Types of interest rates, APR, points, and escrow options all need to be evaluated when looking into getting a mortgage for your Monroe, Weddington, Marshville, or other Union County, NC home. Fortunately, the lending professionals at Whitley Mortgage have decades of experience servicing Monroe, NC homebuyers and helping them secure the home loans they need.
When considering a Monroe, North Carolina home purchase, there are a few steps that should be taken to ensure you’re getting the home you want at the best possible price.
Pre-qualification is a step many mortgage candidates choose to take to help them determine the amount of loan they might qualify for. This is a fairly superficial evaluation process, wherein your finances are examined by the lending agency to determine how much money they may be able to loan you. These proceedings often are finished fairly quickly, and are completed at no cost to you. This makes them a nice tool to have when planning your purchase, though no guarantees are offered through pre-qualification.
Being pre-approved for a mortgage is a more solid indicator of the money you will actually receive. During the pre-approval process, your credit is checked and your finances are examined, giving the lending agency a clear picture of your financial standing and allowing them to provide you with assurances of the amount you’ll be lent. Moreover, sometimes during this process interest rates can be set, which can be hugely helpful in allowing you to plan and budget for your new home.
When evaluating your mortgage options, one of the most important factors to consider is your interest rate. Both conventional mortgages and government insured mortgages are subject to different types of interest rates. Bankers, lenders, or brokers provide mortgage applicants with two types of rates to choose from, which each have their own benefits and drawbacks.
A fixed-rate mortgage is one whose interest rate remains the same through the duration of the loan. These are great options for those who value consistency, as you will know exactly what you’ll be paying on your mortgage from one month to the next. That said, sometimes rate averages and the market will deflate, meaning the interest rate you got at the beginning or your mortgage – however low it was for the time – may be above average down the line.
Adjustable-rate loans have interest rates that rise and fall with the market either as it changes or becomes eligible for adjustment at certain increments – often every 3, 5, or 7 years. These can be beneficial to loan recipients if the market averages drop and bring interest rates with them; however, if the market is unfavorable you may be stuck paying a higher interest rate than the one you began with. A trained mortgage specialist can look at your finances and market conditions to help you determine whether this option will be beneficial.
For more information on applying for a mortgage in Monroe, Unionville, Wesley Chapel, Wingate, or other areas of Union County, contact Whitley Mortgage today. We have decades of experience helping North Carolina residents get the loans they need to purchase the homes they love.