What to ask your Mortgage Lender?
Navigating the home buying process can be mind boggling, which is where your mortgage lenders help comes into play. Your mortgage lender should be able to field your questions and to help put your mind at ease.
Here’s a small list of just a few questions you should ask your mortgage lender when purchasing your home.
What documentation do I need? – Many home buyer’s liken the home buying process to an inquest because of the large amount of documentation that is required. You can save yourself a considerable amount of time and confusion by asking your mortgage lender beforehand what documents you need to compile. The most common documentation includes proof of income, bank statements, and any loan documents from previous loans.
How long will the loan process take? – Time is of the essence when it comes to purchasing a home. Finding out how long the home loan process will take can help you adequately plan and save.
What are my closing costs and other fees? – Buying a home costs more than just the amount of your loan. Closing costs and other fees can add up to extra expenses that you should be prepared to pay for. Asking what your costs are up-front can help you allocate your money accordingly.
What mortgage interest rate will I pay? – Although mortgage interest rates fluctuate every day, your mortgage lender should be able to give you some sort of idea of what rate you can expect to pay, based on the type of loan you are applying for.
What types of loans do you offer? – It’s important to find out what types of loans your mortgage lender offers. A large selection of home loan products is not always a positive indication of a company’s success in assisting you, but does demonstrate that they are current in offering the latest products.
Are there any possible penalties I may incur? – Borrowers are sometimes charged a fee for paying off their loans early, particularly in loans that are subprime. It’s important that you are made aware of any prepayment penalties before you sign off on any loan. Being charged a penalty for paying off your loan early is unfair and for most borrowers, undesirable.
Feel free to ask your mortgage lender any questions that you may have. It’s only by asking questions that you are certain to get the peace of mind that you desire during your home buying process.