Questions to Ask your Mortgage Lender

Questions to Ask your Mortgage Lender

Oct 05, 2016 (0) comment

Buying a house isn’t always a walk in the park, and buyers may have certain apprehensions when looking to buy their home. With the help of a mortgage lender, you will have the guidance and support you need in order to make an effective decision. Choosing the right loan that will suit your financial budget is a huge decision, and choosing the right lender to help you do so is a crucial step in this process, and thus you should always make the most informed decision you can in choosing your mortgage lender.

Here are some important questions that you should ask your mortgage lender.

1) What is the Annual Percentage Rate (APR)?

APR is the total amount of credit you’ll be paying on your loan, based on the terms of an annual rate.

2) What is the Amount Financed?

The ‘Amount Financed’ is your mortgage amount without various charges such as insurance fees, loan organization fee, commitment fees and other adjustments.

3) Why must I sign the Disclosure Statements?

This statement is an acknowledgment of the fact that you’ve been made aware of the necessary information and does not obligate you or your mortgage lender in any way.

4) How does my credit score affect my financing?

A strong credit score will indicate a positive financial background, which will boost the chances of you qualifying for a mortgage loan.

5) How long will the loan application process take from start to finish?

On a typical basis, around 30 days if you’re refinancing your house, otherwise, it will depend on the agreement with the lender for the loan which you are applying for.

6) What is the difference between a pre-qualification and a full pre-approval?

Pre-qualification is the process in which your credit report is analyzed to check your financial background, and it does not guarantee that you’re qualified for the loan. On the other hand, when a ‘pre-approval’ is given, the underwriting department gives an approval by reviewing your documents, which increases the chances of your application being accepted.

7) How do I know which type of mortgage is best for me?

This very much depends on a variety of things, from objectives to credit history, financial health to the nature of the property you’re aspiring to buy, debt, etc. Various types of mortgage loans are available that are designed to be suitable for different needs. Your mortgage lender will guide you in choosing the right one.

8) How much cash will I need to purchase a home?

You must have enough liquidity to cover finances such as deposit money, down payment and other closing costs such as processing fees, paperwork, refinancing, etc.

If you’re seeking a mortgage lender in Massachusetts, Drew Mortgage Associates is a leading firm among Boston’s mortgage lenders, with a panel of expert agents who can help you qualify for a mortgage loan that is perfect for your financial situation. For more information, please visit: https://www.drewmortgage.com/mortgage-loan-faq/

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