Questions to Ask Your Mortgage Lender
Buying a home is no cakewalk. There are many aspects that a home buyer needs to understand before going ahead with the process. Most people apply for mortgage loans. However, they often remain unaware of the key features, benefits, and processes involved in applying and repaying the mortgage loan. It is crucial to choose the best mortgage lenders in Massachusetts that can guide and support you in making an informed decision. Most home buyers are clueless about the terms; they don’t ask proper questions and stay in doubt even after getting the mortgage process done. Are you also wondering what to ask your mortgage lender? We understand your situation. Here’s a list of questions that you must ask your mortgage lender before signing the mortgage deal.
Questions to Ask Your Mortgage Lender
1)What rates do you generally offer?
Mortgage lenders have a range of interest rates. Most mortgage lenders will not claim that you will get a definite rate without checking your credit score and financial background. However, they will be able to share general rates in the initial phase. Mortgage associates may ask for your financial information such as existing debts, source of income, annual income, and more. They will verify every information only after you agree to apply for the mortgage. Hence, getting a general rate idea is crucial.
2) How does my credit score affect my mortgage loan approval?
A credit score reflects a person’s creditworthiness or potential to repay the debt. A strong credit score shows that a person has a positive financial background and can repay the debt without any problems. There are different credit score criteria for other mortgage loan plans. Make sure you check which is the most suitable option for you.
3) How long does the loan process take?
Well, this is also a very important question to ask your mortgage lender. Every mortgage company has its policies, agreements, and processing time. Make sure you have enough time between the process of financing and purchasing a home. The best idea is to get pre-approval. It will save you time and avoid lots of stress due to lack of time. Typically, it takes around 30 days for refinancing a home. Also, it widely depends on the agreement with the lender for the loan you’re applying for.
4) What fees are included in the approved loan?
Don’t be shy; ask upfront about all the fees included in your mortgage. Most times, the additional fees are rolled into the mortgage. As a mortgage borrower, you should be aware of the fees that you will need to pay in the future. It is your right to know about it. Feel free to ask your mortgage lender. They will also help you with the right information.
5) Do you need mortgage insurance?
Yes, mortgage insurance exists. The answer to this question will depend on the loan amount and the type of loan you apply for. Your mortgage lender will outline all the options for your financing situation and evaluate if you need mortgage insurance. If you don’t want to use a mortgage that comes with mandatory mortgage insurance, your lender can give you more mortgage options that might work for you. Discuss the ways you can eliminate the need for such mortgage insurance in the future.
6) How much down payment do I need to do to purchase a home?
Mortgage Loans cover a big amount of the total property cost. However, be ready to cover finances such as down payment, deposit money, and related closing costs such as paperwork, refinancing, processing fees, etc.
The list of questions is endless. There are many things to consider when opting for a mortgage loan. Suppose you are looking for a mortgage lender in Massachusetts. In that case, Drew Mortgage Associates is a leading organization with expert associates to help you qualify for a mortgage loan that is perfect for you. Get in touch with us today!