Ask These Questions to Your Mortgage Lender Before Finalizing on The Loan
You have found the investment of your dreams, done your research and have your financial documents ready. The next important thing is to decide on the mortgaging company. Before you look for mortgaging companies, make yourself aware about the common aspects of mortgaging so that it makes it easier to choose the right mortgaging company.
Learn the basics of mortgage and loans:
Mortgage is a loan secured to purchase a house. Before gaining access to the loan you’ll have to sign a promissory note that serves as an affirmation that you’ll pay back the loan on time. You’ll also have to sign another documentation which specifies that your lender has the power to take over, if you fail to make the required payment.
There are many variations of loans. Some have fixed-rate interest which involves the same interest rate throughout. In adjustable-rate mortgages the interest rate fluctuates depending on the market. There are loans with varying durations. The monthly payment is cheaper for longer duration but the interest charged is comparatively more than with short duration.
Ask more questions to your mortgaging company:
Take your time in carefully scrutinizing the mortgaging company. Choose someone who has been in business for years and is known for reliability. If you are looking for ‘mortgage companies near me’, contact Sammamish mortgage. They have a team of reputed experienced professionals. Book an appointment with them and clarify your doubts before proceeding.
Questions to ask your money lender:
- How much money can I borrow? The lenders quote a value depending on your income, debts, credit history and employment status. Consider getting prequalified mortgage to make the process smoother.
- What are the home loans you offer? There are many options including fixed-rate mortgages, USDA, FHA or VA loan. Some offer specific loans for condos. If the lender presents you with more options, you are more likely to find a loan that suits your needs.
- Which type of mortgage would best suit me? Get recommendations from the lender after pitching in all the details of your situation. If they suggest a couple of options, ask them to put those in writing along with the pros and cons of each so that you get a better understanding.
- What’s the interest rate? Enquire about the annual percentage rate (APR) and interest rate. The APR varies depending on the fees and other loan-related charges. You can use this to compare the prices offered by different lenders.
- Is there a possibility to lock rates? Since interest rate fluctuates, you could save a lot by locking a low rate. If the lender offers rate locks enquire about how much duration you have to lock a particular rate.
- What is the expected loan processing time? Generally, it takes about 30 days. Knowing the average processing time of loan will help in planning the purchase.
- Are they any other added costs? Asking this would help you to be more financially prepared.
Never hesitate to ask any questions. It is good to be upfront so as to avoid confusion along the way.