Mortgaging your house is not an easy job. There are several things you need to be aware of, some important monetary situations or loan requirements etc. No matter how qualified you think you are when it comes to mortgaging a house, it is still important to be thorough with your lender or broker and be prepared for anything.
As already discussed, mortgaging is not an easy job rather it can be the most expensive purchase you’ve ever been interested in. In order to secure the best deal and be stable despite the purchase, there are some questions you need to your lender before closing a deal:
Q# 1: Am I qualified enough for a loan? If so, then which one?
Buying a house needs a loan. However, there are different loans with different interest rates available. Ask your lender to task you with the one beneficial to your situation.
Q# 2: What are my interest rates?
Your interest rates depend upon the type of loan you have acquired, your credit score and your total gross income. Your lender usually hides information from you or spring it on you when you’re completely off guard. Hence make sure to ask this question before you close off the deal.
Q# 3: How much down payment should I provide for the purchase?
Down payment is important during a purchase. So, ask your lender about it instead of the bank or the buyer. Your lender will provide you the best details along with the loan and other tax payments you need to pay first.
Q# 4: Should I opt for fixed mortgage or Adjustable rate mortgages?
Adjustable rate mortgages are only applicable if you don’t plan on living in the house for long. Fixed mortgages clings on to you until you pay it off completely. However, some people receive changes in their mortgage rate earlier than expected so make sure you ask your lender how this entire process works.
Q# 5: What paperwork will I need to get approved?
Paperwork is required when you apply for loan, purchase your house, decide your equity or mortgage etc. By asking your lender such question, you’re confirming everything and making sure nothing else is left behind. You also need to know about your credit records, tax returns and other such asset returns. Your lender provides you a detailed sketch when you ask.
Q# 6: Am I allowed to pay “points”?
Points is a one-time fee which you pay to decrease your interest rate by 1 point. You can pay more as well or apply for the ones which completely diminishes your interest rate. Consult with your lender and he/she will guide you in the correct direction.
Q# 7: Can my loan approval be delayed?
Loan approval is usually never delayed but sometimes they are. In such cases, you need to be aware of your next step or what possible measures you should take to get a quick approval.
Q# 8: What are the total payments?
By total payments, you will actually mean the entire cost. Meaning the fee of lender, tax payments, side payments to the mortgage, monthly payments of mortgage with interest and tax etc. In short, the cost of your purchase in entirety.