11 Critical Questions You Must Ask
The first step, before you seek advice from a mortgage agent, is to get clear about your goals and objectives. Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.
- Do you expect your finances to changeover the next few years?
- Are you planning to live in this home for a long period of time?
- Are you comfortable with the idea of a changing mortgage payment amount?
- Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?
Your mortgage agent can help you use your answers to questions such as these to decide which loan best fits your
When you sit down with a mortgage agent, please be sure to get answers to these 11 questions before you go any further in the loan process.
1. What is the interest rate on this mortgage?
2. What discount points will I be charged?
3. Will you give me a good faith estimate of my closing costs up front?
4. What are the fees, if any, involved in locking in an interest rate?
5. What is the minimum down payment of this loan?
6. Is there a prepayment penalty on this loan?
7. What documents will I need to have?
8. What qualifying guidelines are included with this loan?
9. How long does it take to process a loan?
10. What might delay approval of my loan?
11. Do you have any client testimonials?
mortgage companies will take the time to survey their clients after each closing. Be sure to review at least 5 client satisfaction surveys before you sign any mortgage documents.
Devise a checklist for the information from each lending institution. You should include the company’s name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed.
Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you.
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