Easily avoid any unwanted surprises when buying a home. Ask these 7 important questions when applying for a mortgage.
1. What is the mortgage interest rate?
When working with your mortgage broker, it’s important to get an estimate from your lender for the loan. Your mortgage broken can get you a breakdown on all the add-on charges, fees, points information, and mortgage interest rate, including your annual percentage rate (APR), associated with your mortgage.
2. What are the closing costs?
When you apply for a mortgage your lender is required to provide you or your broker with an estimate in writing for your closing costs. They must provide this estimate three days following the receipt of your mortgage loan application. This estimate should provide you with all the fee details you need to know surrounding your closing costs.
3. Does my loan have a prepayment penalty?
This is a very important question to ask. You need to be aware of any mortgage prepayment penalties, and related specifications on your loan, prior to signing any legally binding documents. If your loan does come with this type of penalty ask your mortgage broker to negotiate a lower interest rate with your lender.
4. What is the minimum down payment I need to have to secure the mortgage loan?
If you are hoping to get the best interest rate and terms on your mortgage, a lower monthly payment, and avoiding additional costs such as mortgage insurance, you might want to consider a bigger down payment (20 percent or greater).
5. What loan requirements will I have to meet to qualify for the loan?
Depending on the type of lender you go with the requirements may be less or more strict. For instance, banks are typically stricter than private lenders. You’ll want to know the specifics on what assets, credit history/score, employment, income and liability requirements you’ll need to meet in order to qualify.
6. What documents will I require for my loan application?
Most lender will ask you to provide documentation related to your assets, bank accounts and/or account activities, proof of down payment and ability to cover closing costs, income/employment, and income tax assessments.
7. How long is the loan application processing time?
It can take up to 60 day to process your loan application, or it can happen in as quick as two weeks, provide you submit all requested information and documentation in a timely manner.
Do you have other questions about your mortgage application or loan? Speak to a professional AKAL mortgage broker today.
When we say YES! We stand behind our promise.®
