While the lender will be asking for you for a lot of background
information in order to ensure you are the best fit for the money
they will loan out, there are basic questions you should ask the lender in addition. Failure to ask mortgage lender the right questions can consequence in misunderstanding and ultimately the loss of a meaningful amount of money. Doing your research, asking the questions, and taking the time to understand the mortgage loan you are being asked will consequence in substantial savings, both in money and headaches.
First, find out exactly how long it will take to course of action your
mortgage if you are obtaining pre-approval to buy a home. This may not be as basic, but if you have already placed an offer on a home with a contigency of obtaining financing, this can be basic. The deal can be lost and someone else may buy the home out from under you, while you’re nevertheless waiting around for underwriting to go by. So save yourself the headache, and get a clear picture upfront of how long the lender expects the time of action to take.
Secondly, ask the lender if they will be any kind of pre-payment
penalty on the mortgage loan. Suree, your thinking about paying off the loan now. today you are just thinking about getting approved and then making the monthly mortgage payments. However, there may come a time in the future when you either have an opportunity to pay off the balance of the loan or you wish to re-mortgage. In either of these instances, the existence of a pre-payment penalty on the mortgage loan will become crucial. Its best to find out now instead of later.
While it may sound ridiculous, many homeowners overlook asking the lender what the interest rate on the mortgage loan will be. They are so caught up in the excitment of purchasing the home, and the anxiety of obtaining financing they simply assume they are getting a good rate and forget to check out the fine print to make sure they really are. Quoted rates and actual rates can sadly, sometimes be two thoroughly matters. don’t get stuck with an absurdly high interest rate. Make sure you take the time to verify the interest rate you’re going to be paying for over the term of the mortgage.