Are you finally ready to make the plunge and buy your dream home? If so, you’re probably shopping around for the mortgage lender that best fits your needs (hint hint, OneTrust Home Loans). Since many first time homebuyers, or even current homeowners don’t know everything about mortgages, they should be asking as many questions as possible when speaking to a mortgage lender. If you aren’t quite sure what to ask your lender, here’s our top 5 questions.
1. How much money do I need to put down?
Now that you’re ready to buy your dream home, I am sure you’re wondering how big of a down payment is required. To get the best rate, terms, and lowest monthly payment possible for your loan, you will want to put at least 20% down. If the term “20% down” leaves you shaking at the knees, don’t worry! We have plenty of options with the various mortgage programs and down payment assistance programs to help land you in your dream home.
2. What are the typical estimated closing costs?
Homebuyers pay fees at closing for the services provided by the lender and other parties, such as title or escrow companies. Make sure you ask your lender to estimate your closing costs so you can budget accordingly.
3. What’s the interest rate?
If you’re shopping for a mortgage rate, ask your lender to provide a rate quote, be sure to look at both the interest rate and the annual percentage rate (APR) for the loan. The APR demonstrates the yearly cost of the loan over the term, including any closing fees or additional costs associated with the transaction; it’s the holistic view of the loan so don’t look at the interest rate alone. Collecting this information will allow you to compare lenders and you will be able to find one you’re most comfortable with. It’s also likely the real estate agent you’re working with has referred you to their mortgage partner. Chances are you’re in good hands, but it doesn’t hurt to get a second opinion, especially if that could mean a major difference in dollars spent on interest.
4. What documents do I need to provide?
Sending all of the required documentation to your lender as quickly as possible will speed up the loan process. The amount of information needed may vary depending on the type of loan program. Click here to download our checklist of items needed to get pre-approved.
5. Is there anything that could cause a delay?
There are plenty of ways to avoid having your closing delayed. Always make sure to keep your lender updated with the most up-to-date information. Keep them in the loop and make sure to not make any drastic financial changes while going through the mortgage process because yes, this will affect your closing. Here are a few changes you should definitely avoid while going through the mortgage process:
- Changing jobs
- Buying a new car
- Opening a new line of credit
Interested in learning more about the wide-world of home loans? Check out more of our blogs or call us at (877) 706-5856 for your home financing needs.