Salient Features of US Bank Home Mortgage
Introduction
Whether you are planning to buy a new house or getting an old mortgage refinanced, US Bank Home Mortgage has something to cater to everyone’s needs. It offers a wide variety of products, which suit everyone. The mortgage products are flexible in nature and tailored to suit everyone’s needs. The US Bank Home Mortgage also offers loan modifications, so that you can take advantage of these new regulations and do not get behind on your payments. Before taking out a loan, you will be required to meet certain norms.
Pre qualification under US Bank Home Mortgage
The pre qualification is the amount of loan that the individual is eligible for.
Pre Approval
Individuals can opt for pre approval if they wish to get their mortgage loan pre approved even before they decide to buy a property of get their current loan refinanced.
Documentation
Get your documents ready to furnish them prior to taking out a US bank Home Mortgage. You will need your:
- Social security number
- Income proof
- Account of all assets owned
- Information about your debts
- Credit Report
Fees
Sometimes the loan officers charge a nominal processing fees for the expenses incurred in processing your loan application.
Closing
The closing is the time when the borrower gets a copy of the documents which record the details of the mortgage. As the documentation is legal, it needs the mediation of an attorney or an agent to understand the fine print. It takes place either at the agent’s office or at the office of the attorney.
Time taken for Mortgage loan
If the papers are all in order, US Bank Home Mortgage loan approval and disbursement takes from 14 days to 60 days.
Lock In Period
The Lock in period is the time that is decided upon by the borrower depending upon the type of loan that he takes. It is the decisive factor of his monthly installments. The biggest advantage of availing US bank home mortgage is that the borrower is permitted to pay off his loans or pay off more than the decided upon monthly amount. Periodical payment of lump sum amounts on the principal is also permitted.
Escrow Account
This account is maintained by the bank and is used to collect the money from the borrower for payment of property insurance dues and taxes.
PITI
- P – Principal
- I – Interest
- T – Taxes
- I – Insurance
PITI determines the different loan amounts allotted under the different categories.
- Convertible Mortgage – The borrower is at liberty to convert an adjustable rate mortgage to a fixed rate mortgage within a specified period on payment of a flat fee.
- Balloon Mortgage – This loan has a fixed payment for the initial 5 to 7 years. Beyond this, when the loan matures, the borrower will have the pay off the balance amount in lump sum.
- Jumbo Loan – This kind of loan amount is when it exceeds the guidelines for maximum amount.
Loan Analyzer
This is used to compare the different products available under US Bank Home Mortgage and compare the loan rates.
Conclusion
The advantage of US Bank Home Mortgage is that the interest rates are lower when compared with other financial institutions. This is the prime reason why people prefer taking out loans. The paperwork and the rules and regulations is also less. Most banks concentrate only on the home mortgage loans.