Buying a home is an investment. It’s one of the largest expenses most people will have, in fact, and securing the funds can be a complex process. Professionals such as mortgage lenders and mortgage brokers help move the process along. Before you commit to a loan, however, there are a few questions you should ask them.
- Which loan is best for my financial health?
Before you commit to a loan, ask your lender or broker for more information about it. Which of the three main loan types works best with your financial health? These include negative amortization loans, interest-only loans, and adjustable-rate loans.
- What is the required down payment?
For many borrowers, the required down payment will be 20%. However, this is not always the case, and some loans might have requirements as low as 3%. If you have the option, ask about what percentage works best for you in the long term.
- How much do I pay you?
Whether you are working with a mortgage broker, a mortgage lender, or both, you will eventually pay for the service in some way. Ask them how much money you can expect to pay them and how that number is calculated.
- Will my loan be approved in-house?
Some lenders are authorized to instantly approve loans without sending them to the FHA or VA for approval. These lenders can also decide to disapprove loans instantly. An in-house approval can save buyers serious time.
- Are your closings guaranteed on-time?
Buying a house can take buyers and sellers alike through a number of different deadlines. If lenders can’t close the deal on time, you might pay more in the short-term and long-term. Ask if your interest rate is increased if the lock-in requires, too.
Are you interested in learning more about mortgage lenders and brokers and how they can affect your home purchase? Reach out to our experienced team today!