5 Questions You Must Ask Your Mortgage Lender

Are you shopping for a mortgage? The 5 questions to ask your mortgage lender outlined below will help make sure that you make an informed decision. Here are some questions you must ask your mortgage lender before getting a loan. Below are 5 questions…
Are you shopping for a mortgage? The 5 questions to ask your mortgage lender outlined below will help make sure that you make an informed decision. Here are some questions you must ask your mortgage lender before getting a loan.

Below are 5 questions you must ask your mortgage lender:

What mortgage is the best fit for me? Your mortgage lender should be able to answer this question once you’ve completed an application and the lender takes stock of your employment, income, assets, credit, debt, expenses, down payment and other information about your finances. Source: realtor.com

What’s the interest rate? Ask for the lender's loan estimate, which breaks down the interest rate and fees. It will include the annual percentage rate, or APR, which accounts for the interest rate, points, fees and other charges you will pay for a mortgage. Source: BankRate.com

What is difference between a fixed rate and adjustable rate? Fixed-rate loans have interest rates that don't change during the life of the loan. Adjustable-rate loans have rates that are linked to an index, Prime, and therefore can change over time. Consider factors that could affect your decision, such as how a higher monthly payment would impact your budget if the rate were to increase and the length of time you plan to stay in your home. Source: CitizensBank.com

What different repayment methods are available? Make sure you understand the whole range of mortgages available. You should be told about capital and interest mortgages and interest only mortgages as well as the different repayment vehicles such as endowment policies, PEP's, ISA's and pension mortgages. Source: Independent.co.

What are my closing costs? Once all the information is gathered, assembled and delivered to the loan office or broker, the Good Faith Estimate should outline and disclose if you will be paying any points for a rate quoted and define all fees associated with obtaining that loan. Source: sheknows.com

Hopefully these tips will help you step closer to your dream property. If you have any questions or need further assistance, please give us a call.
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