You have found the perfect home to buy and have negotiated with the seller for the price.
Now it is time to secure the mortgage lender or broker, you may find it helpful to prepare to ask him or her the following questions.
The information you receive can be used as a basis for comparing loans.
What documents do I have to give?
In order to get a mortgage loan, you will need to give proof of income and assets.
The amount of necessary paperwork will vary somewhat from lender to lender.
How much time will it take to process my mortgage loan application?
It will typically take around 45 to 60 days, although, for some transactions, it may take as long as 90 days or as few as 30 days.
The specific time will be based on how soon the lender can receive an appraisal of the property, verification of employment and bank accounts and credit report.
What is the lowest down payment I can make?
The amount of the down payment can influence whether you can avoid private mortgage insurance (PMI) and will be a factor in the interest rates and loan terms you can recieve.
Some loans are special low down payment programs while others require the standard 20 peercent down payment.
What is the annual percentage rate of the mortgage interest?
Ask for the annual percentage rate, or APR, of the mortgage interest, which is typically higher than the initial quoted rate because all of the lenders' fees are included.
This will help you compare different lenders' prgrams.
Is locking in the interest rate an option and are there any fees for locking in the rate?
Before you even close on the home, the interest rate of the mortgage you're applying for can rise or plummet.
It can be wise to lock in the rate for a specific time period, rather than let the rate float until the closing.
Does the loan have any prepayment penalty?
Learn what the duration of any penalty period would be and how the fee would be calculated.
If you think you will sell the home before the mortgage is paid off (as many homeowners do), knowing how much the prepayment penalty would be is important.
I can also help answer your questions about the purchase or sale of a home.
Call me today!
