Mortgage Comparison: Ask Your Lenders These Questions

Best Practices for Paying Off Your Mortgage

Mortgage Comparison: Ask Your Lenders These Questions

Before you go with the very fist mortgage you are offered, take the time to get a second opinion and compare mortgages. 

Financial information, like your credit score and salary, are set numbers, but many financial institutions can interpret information differently. These inconsistencies can play to your advantage because they can mean lower interest rates, or play to your disadvantage if you get stuck with a higher interest rate–merely because of your choice in lender. The good news is that you can call two different lenders to apply for a mortgage. The trick is knowing what questions to ask and what answers to listen for. Here are questions you should ask your lenders to ensure you get the best possible mortgage.

  1. Are points included in the quote? A mortgage quote with an interest rate from your lender may or may not include points. Points are the extra fees paid to the lender when you close escrow on a home. Understanding what points are will only benefit you and help you get the best possible mortgage for you.
  2. Will my downpayment amount affect the interest rate or fees? If you put down less than 20 percent of your mortgage, you’ll likely have to secure private mortgage insurance. You should understand the minimum down payment and how it will impact the rest of your dues.
  3. Can I lock in a rate, and how long will that last? When you get a quote for a mortgage, you can lock in that rate. It doesn’t last forever, so make sure to ask how long you have until it expires. You can use this time to shop for another mortgage and ask the same questions.

Proper mortgage lenders will work with and for you. For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.