Top 10 Things to Ask Your Mortgage Lender
When it comes to home buying, there are so many steps to the process and questions to be asked that sometimes a buyer can get lost in the stress and paperwork. Jacob Title LLC knows that there’s much more to buying a house than just finding the perfect home. Between saving money, credit checks and looking for a lender, here are the Top 10 questions you should be asking your mortgage provider to make sure you get the best bang for your buck.
Have you compared rates?
Different lenders may offer the same interest rate but always make sure to read the small print. Yes, the base rate may be the same but what about their taxes and added on fees? Compare all the numbers and make sure that when it is all said and done, you are getting the best rate available.
What can you do for me?
The mortgage world is extremely competitive, but you, the buyer, actually have the upperhand. When you are shopping for a car, do you take the first one you come across? No, you shop around. Being the buyer, you have the ability to negotiate with the mortgage companies about the interest rate they are offering. It never hurts to ask and you may be surprised at their willingness to gain your business.
What are my options for paying back the loan?
So you’ve found the best mortgage rate, but what about payment choices. Most mortgage lenders and banks offer different schedules for setting up your mortgage payments. You may set up monthly payments in the beginning but want to change it further down the road. Always check to see if there are any fees involved in changing repayments when you make the choice to do so.
What home loan features do you offer?
Interest rates are the main factor when comparing home loans, but you may not realise the importance of the different home loan features. These features have the capability of saving you thousands on your home loan. However, some lenders may charges fees on these features, which could end up costing you more in the end, so make sure to check with the lender before applying.
What do I need to have when I apply?
When it’s time to apply for the right loan, check with the lender to see what documentation you need to provide when you actually apply for the loan. The more organized you are in the beginning, the faster the lender can process your application.
Once I apply, how long does it take for my loan to be approved?
If you are researching mortgage loans, one of the most important questions you need to ask is “How long will it take to get approved?”. Once you’ve found the perfect home for you and your family, you want to move in as soon as possible. The last thing you want is for someone else to come in and buy “your” home because you’re still waiting to hear from the bank.
Are there any benefits to being a loyal customer?
When you are shopping for a mortgage loan, start close to home. Check with the banks or lenders that you already have accounts with and see what kind of offer they can make you. Most companies are willing to offer bonuses or discounts to customers who have a proven track record.
How much money should I have for the deposit?
Just like there are many types of houses, there are also many different types of home mortgages. Ask your lender which mortgages would be best for you and what type of down payment is needed for each of them. Lenders have the best information on mortgage types and incentives that will best fit your situation and budget.
Is it a fixed rate mortgage or an ARM?
Fixed-rate loans keep the same rate for the entire life of the loan. ARMs or adjustable rate mortgages, have interest rates that fluctuate after an initial period then at regular intervals. If you think an ARM is right for you, make sure you inquire when the rate will change, by how much and how often. The more you know about the types of loans available to you, the better equipped you are to make the right choice.
Do I need mortgage insurance, and how much will it be?
When you put less than 20% down on your home purchase, you are required to pay mortgage insurance until your loan-to-value, or LTV, ratio falls below the 80% mark. Mortgage insurance premiums can be expensive, sometimes costing up to $100 per month for every $100,000 you borrow. This is an important cost to figure into your budget when it comes to a monthly mortgage payment.
Jacobs Title LLC knows that the home buying process can be confusing. Being prepared and knowing whether to get a variable rate or fixed rate mortgage, and what aspects of the mortgage are important. The professional team at Jacob Title can help you with your mortgage insurance questions and many other aspects of the real estate mortgage world. Let us help be your guide and give you the peace of knowing you’ve made the right decision for you. Contact us today at 256-882-5673 or find out more here!