Buying an asset can be very stressful, mainly if the investment is expensive or the process is demanding. Due to these reasons, most people decide to use a mortgage lender to make the process easier. A mortgage lender will save you from the pressure and relieve you from having unrealistic presumptions. You need to have the correct information about the lending process to protect you from landing in trouble.
Fortunately, several licensed mortgage lenders like Alan Brinsfield – Homespire will offer you a worry-free experience, and since they deal with home buying, you can manage and refinance your home. To proceed with your mortgage lender decision, you need to inquire about several things.
Here are nine questions you should be asking your mortgage lender;
How Much Can You Render?
The question is essential before getting a loan. The amount of money depends on your income, payment consistency, and credit history. A mortgage lender cannot lend you more than your capability to avoid payment issues. If you have an adverse credit history, you might be denied the loan.
What are the Different Types of Home Loan Options?
It would be best to look into different home loan options before choosing. The good news is that you don’t need to do the selection yourself; some personal loan consultants will help you. One of the options is the 30 years fixed-rate mortgage, which expects you to pay a certain fixed amount monthly for the loan length. The second option is the 15 years fixed-rate mortgage which is the best option for people with a predictable and constant income. The option will also help you finish paying off the loan faster.
The third option is the adjustable-rate mortgage, where the payment keeps shifting based on interest rates. The fourth option is the USDA loan, which works well for people who want to buy houses in less populated areas, such as in rural areas. Federal Housing Administration loan is the fifth option that requires you to apply for a reasonable rate for advanced payment.
How can I Pay Off my Mortgage Faster?
Paying off your mortgage can be stressful, especially if you have never been on credit before. To stay calm, you can choose a flexible way of paying your mortgage or a fixed method depending on your source of income. Some of the methods you can use include, instead of spending your mortgage after every month, you can decide to pay after every two weeks. Also, you can choose to refinance your mortgage to get off the debt faster. You can talk to your loan consultant and change the thirty-year fixed rate mortgage to a fifteen-year fixed-rate mortgage.
How Much Security Deposit do I Need?
If you are willing to buy a house, you must prepare yourself with a down payment. If you want good rates, you need to have a reasonable amount of security, for example, 20%. Remember your deposit will determine your payment method and interest rates; hence you should go for what is comfortable.
Can I get Advance Payment Assistance Programs?
Sometimes paying for a mortgage can be quite a hustle, especially since employment is unpredictable. `If you are a militant, you can apply for a veteran administration loan(VA), which has better payment terms. Another assistant program is the FHA 203(k) program for people who don’t mind renovating an old home. However, the type of mortgage will help with financing for the fixing process. You can also apply for FHA for affordable mortgages with a low down payment rate.
What are Your Interest Rates?
Before settling for a mortgage lending company, ensure that you ask for an interest rate quote. The company advises that you compare interest rates from different lenders.
What is Refinancing?
Refinancing means getting a new house after getting another loan and paying for the old house. When getting a new home, the lender will confirm your pending loan, source of income, and your intentions for taking the second loan. On the other hand, the lender will require you to provide the current house’s value to decide the amount of money they need to offer you.
Refinancing your home is a good option when the interest rates keep fluctuating. Refinancing can help you pay off your mortgage faster and get a new home. Refinancing requires you to have first-hand information; hence it is essential to consult personal consultants.
Am I Expected to Pay any Extra Fees?
You must find out about extra payments to avoid inconvenience or disagreement. However, additional fees may arise during the payment process, or you may find out that you have paid a different amount. During the closing period, your lender will give you a closing disclosure, which you will compare to your initial loan estimate. The closing disclosure contains all details about your loan payment journey, such as mortgage interests and whether you have paid for homeowner insurance and taxes.
When will be the Closing Date?
It’s good to know when you are going to finish paying off. However, different factors affect your closing dates, such as your financial issues or death. However, some companies may delay your closing period; hence you need to show your progress through the document. The best way to handle the issue is to ask the lender about a time estimate before beginning the process.
