4 Questions To Ask Your Mortgage Lender
The best way to get to know your mortgage lender is to ask questions. Don’t be nervous about giving them personal questions and don’t be afraid of asking difficult ones. The more you know about each other, the better. Here is 4 questions to ask your mortgage lender:
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What is the current interest rate?
The interest rate you will get will depend on your credit score and the loan amount is determined by the lender. It will also impact on the monthly payments. However, if you get a loan with a lower balance, you can reduce the amount you set aside for those payments. If the interest rate fails to satisfy, clean up your credit history. That way you can qualify for a lower interest rate.
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How much do I have to pay monthly?
Your home’s budget should be based on how much you can pay monthly for the mortgage. Therefore, make sure that you take taxes and insurance into account during calculations. Plus, don’t forget about your short-term goals such as vacations and retirement plans. In other words, you should pay just enough monthly to take care of other financial obligations as well.
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Do you charge extra for anything?
Every lender will charge differently. For example, some will charge an application fee or ask for a fee for the appraisal upfront. Before settling on one, shop around for other lenders for a deal you can afford. Your focus should be to find a loan program you can live with. You shouldn’t have to make more payments to a lender before you have found a property.
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Will I be penalized certain payments?
Some lenders charge a prepayment penalty if a mortgage is paid off early. However, most loan programs today don’t have this fees attached. If you pay more of the principal balance, this fee will not be applicable on your loan.
These were just some of the questions that your mortgage lender should be able to answer. Shop around for a reliable one who will be upfront with you. If are planning on purchasing a home in the Scott county area of Minnesota and want to learn more about the mortgage process contact Loyal Partner Homes.