When you opt for loans, you must pick the right mortgage lender, who will provide you with the type of mortgage at the number of fees you can pay with good terms and conditions. However, you must search for the right mortgage lender and list the right questions to ask them.
After all, questions help us clarify a lot of miscommunication and hazy details that become crucial later. Hence, we are here to present you with a list of 5 questions to ask your mortgage lender.
What will be the Interest Rate?
This is the most important question that you should be asking your mortgage lender. The interest is the additional amount you pay with every instalment of the loan. It would help if you also asked the mortgage lender about the corresponding annual percentage rate (APR) for the loan and the interest rate. The APR will consist of the number of fees and loan charges.
When to Lock the Interest Rate?
Since interest rates are constantly changing, knowing when to fixate the interest rate is a great help. Locking at a low interest rate is the ideal circumstance but, do keep in mind it only happens for shorter-term locks.
Is There Any Other Cost or Fees I Should Know of?
Keep collecting information upfront. The more information you have, the more you will be prepared to deal with any unexpected expense that gets thrown in your path at the last moment. Your mortgage lender should ideally be giving you a Closing Disclosure that has details regarding all the costs of your loan. Always compare the Closing Disclosure with your estimated loan.
Which Type of Mortgage is Best for Me?
Sometimes one mortgage is not one size fits all. Your needs could be different, and that is why you should always ask for options or types of mortgages offered by your mortgage lender. Based on the options available, you can select the right mortgage.
How Much Down Payment Will I Need?
Usually, a 20% down payment is the ideal amount that every mortgage lender would ask. However, some experienced buyers can even scoop out mortgages that have as little as 3% of down payment only or even having no down payment at all. The best mortgage lender will give their time to make you understand the available choices.
Wrapping Up
A mortgage is a very important decision to make, so asking questions is your lawful right before you decide to go with it. Ask as many questions as you can come up with but, don’t forget these five questions, which can help you narrow down your options. That way, you can get the right mortgage for your needs. At JD Title and Escrow Services, we aim to provide you with a smooth experience. So if you want more information, please get in touch with us for a free consultation.