Is it your first time buying a house? Buying a home can be quite exciting, but there are quite a lot of things that you have to consider. One of these is your mortgage. Unless you are wealthy and you have enough cash lying around to pay the whole amount of a house, then you only have loans to go to so you can buy your dream house.
In this article, we have listed ten questions you should be asking your mortgage lender for your Mortgage Loans Arlington.
How much can I borrow?
Lenders usually check your current financial status, your employment status, your debt-to-income ratio, and credit history. Talk to your lender about getting qualified before you look for a house so you know how much you can borrow. Also, there are several special government-sponsored mortgage programs. It is essential that you ask your lender if you might qualify for any of these.
How much is the down payment?
When buying a house, you will be required to pay a specific down payment so you can get the best terms and rates for your loan. As such, you should save as much as you can for this. It’s quite expensive. However, it is often at least 20 percent of the total purchase price. Lower down payment may mean that you will add the monthly private monthly private mortgage insurance (PMI) is going to be added.
What’s the interest rate?
First things first, when you meet your lender, don’t forget to ask for a quote for the interest rate including the loan’s annual percentage rate (APR).
What is the difference between an adjustable-rate and a fixed-rate mortgage?
You have to choose among these two mortgage types and find out which is best for you.
How many points does the rate include?
Ask the lender just how many points are going to be included in the quoted interest rate as well as the benefits in buying fewer or more points.
When can I lock in the interest rate?
Interest rates are always fluctuating. It is quite advantageous for you if you lock in a low rate. Ask your lender for how long and when you can lock a specific rate.
How much are my closing costs?
Remember to include the various fees when you are buying a house especially the closing costs. These include the appraisal fees, loan origination fees, attorney fees and a lot more.
Are there other fees I should know about before I proceed?
Your lender should provide you a Closing Disclosure. In which details to associate all of the costs with your loan. Read this carefully and if you have things you can’t understand, always ask.
When’s the closing going to be?
Your exact closing date can be affected by a lot of factors so always ask your lender when the expected schedule for the closing is.
What could delay my closing?
Sometimes, there is a possibility of delays in your closing. It is normal but to avoid this, try to keep in touch with your lender and always provide updated documentation as fast as possible.