What to Expect During the Loan Process

Before you move forward with any loan, it is important for you to know what to expect and how the process will unfold. This will simplify your lending experience while making it that much easier to complete your loan. Here is what to expect before, during, and after your signing for a loan with Heritage Bank.

How Long Does it Take?

When applying for a mortgage, it can take around three to four weeks to approve the application. Mortgage loan tip: When filling out all information, make sure to go over the expected closing date.

Speed Up the Lending Process

One of the best ways to expedite the lending process is to make sure you have all needed documentation. This includes everything from past tax returns and pay stubs to current bank statements.

Deciding Interest Rates

Your interest rate is going to vary based on a few different factors. Most of it comes down to your credit score. The better your credit score, the better your interest rate. However, in terms of a mortgage, that will change. The more money you’re able to put down on a down payment, the better your interest rate becomes. Additionally, if you’re interested in a shorter lending period (such as 15 years instead of 30,) your interest rate will be lower. It’s best to consult with your Heritage Bank loan officer to determine exactly what your interest rate will be, depending on these variables.

When Do Interest Rates Changes?

These rates change at least once a day.

What Are Closing Costs?

The closing cost is the percentage you pay on top of the actual cost of your home. This percentage goes to cover a number of other expenses, including appraisal fees, credit report fees, attorney fees, title fees, and a number of others. Generally this is going to run around two or three percent of the loan amount, and if you’re buying the property, you’re often responsible for these costs. However, you may be able to work it into your purchase agreement for the seller to pay closing costs.

If you’re ready to apply for a loan, have more questions regarding the lending process, or want to know more about the services offered, give us a call.