Questions to Ask Your Lender

Do you know the important questions that you must ask your lender in order to get the best deal possible on a home? Whether it is buying a home or looking into refinance home mortgage loans, you must always ask questions. This helps prepare you for the process and also makes sure that you and the lender are on the same page. The following are some of the important questions you can ask your lender during this process.

How Will My Application Be Processed?

When you agree on a mortgage you do not want to have to sit around for a long period of time and wait for it to be completed. Lenders will often time say that it takes about 2 weeks for everything to finalize. It is possible for the process to get backed up, but you must stay on top of them and make sure they are working on your loan. Lenders have been known to take up to 60 days in some cases to finalize an application. This is way too long and you must make sure you get all this handled before then. If two weeks have gone by and you have no response, then contact them and see how the process is going.

What is My Interest Rate?

When you have an idea of the interest rate you will finally have an idea of the total amount you will be paying during the life of the loan. This is when you need to refer to your credit score and make sure you are getting the best interest rate possible, and one you truly deserve. Do not come in and accept the rate the offer right away. Let them know that you want the best rate they can offer. When you get an idea of the rate you will be getting, you can then compare if with the rates that other companies are offering you.

How Do I Work My Down Payment?

This is a step that you should not overlook. Your down payment can go along way towards helping your with the overall cost of the house. A down payment can be anywhere from 3 percent to 20 percent of the overall house. The larger your down payment the lower your total monthly payments will be. The lender may make you buy mortgage insurance if you can only pay a small down payment. Know what the down payment they expect from you is, and then figure out what you can actually afford.

What are the Total Costs?

You need to know as much about the total costs as possible before you sign for a mortgage. Know all the little fees that could be charged. Know the monthly payments, interest rate, and closing costs. It is required that the lenders give you a solid estimate on how much these costs will be. You must be informed within three days of getting your loan application. Do not overlook this step. You should always want to know what the costs are.

Take steps to avoid mortgage fraud.