When applying for a mortgage, it’s important to ask as many questions as possible to not be surprised should anything come up.
From looking through endless paperwork to searching for optimal loan terms, purchasing a home can be as mentally taxing as trying to learn quantum mechanics. While there won’t be as much math involved, channeling your energy into finding the perfect home is way more pleasurable than having to suffer through potential lenders and loan applications. Here are some questions you should ask your mortgage lender before you go shopping for the home of you dream that should get you started on the right foot.
- What are the closing costs associated with this loan? Closing costs typically fall within 2 and 5 percent of the total loan. It will only benefit you if you to know where the closing costs lie to know you’ll have a better idea of what you can afford.
- Are points included in the quoted interest rate? Points, in real estate, means the amount paid to reduce the rate on the loan. Knowing this number is important to clarify whether the quoted interest are the quotes, or how long they will last so you can think it over.
- What is the required down payment? A variety of loans and not all of them require the same downpayment. Make sure to ask how much you will be required to put down and, if it’s less than 20 percent, as if tackling on a PMI (Private Mortgage Insurance) will be an additional requirement.
There is no such thing as a stupid question, and your lender wants you to ask questions because the more you know, the less of a problem you’ll be for them. For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.
