5 Important Mortgage Questions to Ask a Lender
For most people, their home is the largest purchase they’ll ever make, and their mortgage is the largest loan they’ll ever take out. With that in mind, it pays to learn as much as possible about the lending process.
At Priority Lending LLC, we’re here to help aspiring homeowners on their way to finding the home of their dreams. We’re Tucson’s trusted mortgage lenders, and we understand the value of making informed decisions while securing a mortgage loan.
In this blog, we talk about five essential mortgage questions to ask when beginning your loan application. To get personalized answers to your mortgage loan questions, reach out to our staff today.
#1: What Down Payment Will I Need?
One of the most critical parts of the home buying process is the down payment. Ideally, lenders look for a down payment of 20% from most buyers. However, qualified buyers may be able to negotiate lower down payments, depending on their credit report, income, and other factors.
#2: What Will My Interest Rate Be?
Interest rates impact the overall sum of money you will pay for any property. For this reason, you must understand what your interest rate is and how it will affect the final price you pay for your home.
If you’re hoping for an adjustable-rate mortgage, make sure to ask how often the interest rate will be adjusted, what the maximum adjustment amount is, and other details before you agree to anything.
#3: Is Down Payment Assistance Available?
One of the most overlooked mortgage questions to ask during the lending process is about assistance. Buying a home is a significant investment that requires considerable resources, and help exists for those in need. Be sure to ask your mortgage lender about any down payment assistance programs in your area.
#4: What Will My Monthly Payment Be?
To help you prepare for life as a homeowner, make sure to ask your mortgage lender what your final monthly payment will be, the number of payments you will make, and other relevant questions.
Some lenders have specific policies regarding late payments, so ask about those factors before signing. Be sure to ask about early payment guidelines, too, as some lenders have restrictions on early loan repayment.
#5: What Other Closings Costs Will I Pay?
Finally, you should ask your mortgage lender about any additional costs you will pay at closing. Since down payments for buying a house can be hefty, it’s best to know how additional charges will impact your initial investment before proceeding with a loan application.
Some common additional closings costs include:
- Property taxes
- Loan origination fees
- Discount points
- Appraisal fees
- Title searches
- Deed recording fees
- And more
Get Expert Mortgage Guidance Today
Not all loan applications are created equal. Some home loan programs have regulations that dictate minimum and maximum interest rates, income-based eligibility, and more. Those seeking VA loans or other specialized home loans should coordinate closely with that organization during the application process. To learn what mortgage is best for you and other mortgage questions to ask during the lending process, reach out to our team at Priority Lending LLC today.