Understanding what kinds of questions to present to your potential mortgage lender is very important, as it can put you ahead of the game and get you the best deal on your home.
Come with us as we go through the top 5 questions you should be asking your mortgage lender.
Which Type of Mortgage Is Right for Me?
This is one of the most important questions out there, as it will help you determine whether you’re talking to someone who can produce great results or someone who is simply trying to sell you something.
You need to ask your mortgage lender what your options are. The mortgage lender should then give you an outline of your various options, along with the pros and cons of each.
How Much Does My Down Payment Need To Be?
The ideal downpayment for just about every lender is 20%. However, 20% isn’t always required. A qualified buyer might be able to find a mortgage out there that only requires 3% down. If you’re really lucky, you might be able to find one with no downpayment at all!
A great mortgage lender will walk you through your downpayment choices to get you the best deal.
Do I Qualify For Payment Assistance?
If you really want to size up the value of your mortgage lender, then this is a very important question to ask. If they can’t give you a straight answer, it might be time to find another mortgage lender.
A great lender should have knowledge of downpayment assistance programs on a local, state, and national level. They should also be able to help you navigate the process of applying for one of these assistance programs.
What’s The Interest Rate?
This is a question you already should have planned on asking. In fact, it’s probably one of the most asked questions out there. What is important to note is that there are several ways in which a lender has the ability to move the needle on your interest rate. In many cases, a mortgage lender will tack on additional fees.
Talking to multiple lenders is extremely important, as you’re able to get a ballpark percentage. For example, the average interest rate might be 5%. Once you know that, you’ll need to ask about the annual percentage rate (APR).
You will also need to ask how often they adjust the rate if you are getting an adjustable-rate mortgage vs. a fixed-rate mortgage.
What Is My APR?
Going along with the last question, you’ll need to find out what your APR is. APR incorporates the loan’s embedded fees. Understanding your APR is the best way to get a better grip on how much you will be spending in the future.
Final Thoughts
Getting a new mortgage can be a scary process, especially if you haven’t applied for one in years. Ask some of the questions above, however, and you’ll gain peace of mind from having a better understanding of your mortgage.
If you’re looking to sell your home and take your next steps in life, make sure to get in touch with us here at EZ Max Offer. We’ve helped thousands of homeowners sell their homes in “as-is” condition for fair market value. You’ll never have to worry about repairs, renovations, or additional fees.
