|
|
|
Home Mortgage Articles and Loan Articles
Signing a Mortgage? Ask the Right Questions First!
There is one rule that dominates in the home mortgage industry: That you never go solely according to the mortgage interest rate. Instead, it makes good sense to take a close look at the wording surrounding a mortgage program. You can even check with lenders, a mortgage broker or shop on the Web for comparative rates. When you shop around, be ready to ask your mortgage lender a few key questions given here. The answers that you get may help you decide which mortgage is best for you.
How soon can I expect my mortgage loan application to take?
Typically, an application for a home mortgage takes about 45-60 days to be processed and approved. Of course, there have been times when they've taken just 30 days or less! But really the time required depends on how soon the mortgage lender can get the property appraised, a credit report and employment details and bank accounts verified.
What financial documents will I have to provide?
A certificate that verifies your total income and your assets will be necessary to get a home mortgage loan. However, lenders ask for different documents, so it depends on which lender you choose.
What qualifies me for a home mortgage loan?
Your mortgage lender will look at your credit history, income, employment status, assets and debts before considering you for a home mortgage loan. If you're a first time home buyer, you stand a better chance of being granted a mortgage.
How much will I have to put down as a down payment?
First, finalize the down payment amount on your home mortgage loan. Based on this your lender can offer you a range of interest rates, loan terms and perhaps even not require private mortgage insurance. While some loans demand a 20 percent down payment; others are much lower than that.
How much mortgage interest will I have to pay annually?
To compare well against different lenders' rates on your home mortgage loan, ask them for their annual percentage rate or APR of the mortgage interest.
How much will I have to pay for origination fees on the mortgage loan?
Origination fees are usually paid as prepaid mortgage interest on your entire home mortgage loan. Your lender could ask you to pay this in points at closing time just so that you get a lower interest rate on your home mortgage loan.
Can the interest rate be locked at a certain rate during the application process?
The interest rate of your home mortgage loan is variable, so it could rise or fall before you closing time. So, it is wise to lock in the interest rate for a specified time period rather than have a floating rate until closing. Ask your mortgage lender about any fees for locking in an interest rate and if you can lock in points.
What is a "good faith estimate" of closing costs?
Mortgages, including home mortgage loans, are accompanied by a whole litany of fees. So, ask your mortgage lender to show you the whole list of estimated closing costs before you actually apply for the mortgage. Keep in mind that certain fees must be paid upfront, for example, the credit report, property appraisal and mortgage application fee.
Are there prepayment penalties on the mortgage?
This is an important matter for mortgage home loan shoppers to consider. You need to know the duration of the penalty period and how the prepayment fee will be calculated. While some prepayment penalties stand at only one percent of the loan amount, others aren't as easily calculated.
Can I expect any delays in my home mortgage loan being approved?
Everything on your home mortgage loan will move like clockwork if you provide the mortgage lender with complete and accurate information about your financial status. However, there may be delays if the mortgage lender finds credit problems in the financial statements that you provided. To avoid such an eventuality, notify your mortgage lender on your personal or financial status if there is a sudden change after you have sent in your mortgage application. For instance, if you have a change in employment, received an increase or decrease in your salary or if you have a change in your marital status, be sure to inform your mortgage lender.
|
|
|
|
|
