Buying or refinancing your home can be a daunting task for anyone, whether it’s your first home or your fifth. The world of mortgages, reverse mortgages, refinance, amortization, PMI, and so on can be dizzying for those who are unfamiliar with the process. Fortunately, you can help cut through the fog by talking to your low interest mortgage lender in Kansas City. They can help you to answer any questions and make the whole process quick and easy.
At First Fidelis, we hear a lot of common questions from both first time home buyers and people who are looking to refinance their home or get a reverse mortgage to leverage their home’s equity for extra money to pay off debt, pay bills, or finance home improvements. So we decided to answer a few of them here on our blog. If you don’t find the answer to your question, feel free to Contact Us and we’ll be happy to help!
Why are there so many kinds of mortgages? How will I ever figure them all out?
Different kinds of mortgages provide solutions to different kinds of needs. Your quick closing mortgage lender in Kansas City can help you to find the loan that’s right for you, but for a quick overview of the kinds of mortgages and how they work, try our Loan Programs page.
What’s the difference between a fixed and adjustable rate mortgage?
Fixed rate mortgages are the most common types of mortgages. The interest on a fixed rate mortgage is guaranteed to stay the same for the life of the mortgage. Adjustable rate mortgages, sometimes called ARMs for short, have a fixed interest rate only for the first few years of the loan, after which time the interest rate becomes variable. ARMs frequently offer lower initial payments than fixed rate mortgages, and can be good solutions for individuals who only plan to own their homes for a few years.
How long will it take to process my loan application?
Buying or refinancing a home is a big decision that can take time, but by going through a quick closing mortgage lender in Kansas City, you can speed the process up considerably. Your quick closing lender can even reduce closing time by a week or more by using pre-approval to make sure that you meet all the loan requirements before you go to the trouble of submitting a lot of paperwork.
What documents will I need to provide?
In order to make the loan process go as quickly as possible, your quick closing mortgage lender in Kansas City will ask you to bring all the documents you need to the first meeting: proof of income, your most recent bank statements, W-2s and tax returns from the last two years, as well as ID and the social security numbers of anyone who’s going to be listed on the mortgage. If you have any unique credit situations such as alimony or a recent foreclosure, you’ll want to bring documentation of those along as well.
What is amortization?
Amortization is one of those words that you’ll hear tossed around a lot when you’re looking at buying or refinancing a house. It can sound a little intimidating, but it’s actually something that you’re probably already familiar with. Amortization is simply the act of paying off a debt on a fixed repayment schedule by paying regular, recurring installments over a period of time. If you’ve had a mortgage or even a car loan before, then you’ve already engaged in amortization!
What is mortgage insurance? Do I need it?
Private mortgage insurance, often shortened to PMI, is generally required if you make a down payment of less than 20%, or if you refinance with less than 20% equity. Essentially an insurance policy that protects the lender if your home ends up in foreclosure, PMI is something that a good low interest mortgage lender in Kansas City can help you navigate.
Hopefully we answered at least some of your questions, but if not, or if you just want to learn more about quick closing mortgages in Kansas City or are ready to apply, don’t hesitate to contact First Fidelis today!