Deciding to buy or refinance a home is a big decision with a lot of moving parts and pieces. Making this purchase also requires a level a vulnerability to trust that a mortgage lender has your best interest in mind. One thing that can increase your comfortability level is asking the right questions. Below are a few questions to start your list and get you thinking about what to ask.
What are my loan options?
A reputable lender would not throw out loan options before first determining precisely what you are looking for. It is important to choose a lender who is knowledgeable and can steer you in the right direction because each loan has pros and cons.
Furthermore, there are many factors a mortgage lender considers to determine loan qualification. Your financial history and credit score are a couple of things that play a role in the decision-making process.
What is my interest rate?
Interest is factored into your monthly payment and will determine the amount of interest a buyer is required to pay over the life of the loan. Your credit score, among other things, helps determine this rate.
A mortgage lender should also explain the difference between annual percentage rate and interest rate. Knowing these essential percentages are helpful in choosing the best loan for you.
Is this an adjustable or fixed mortgage?
An extremely important question. Home buyers often prefer fixed-rate mortgages, however, there are scenarios where an adjustable rate mortgage seems to be a better option. If this option appeals to you, you need to know the variations throughout the life of the loan.
Again, these are just a few questions to get you started, so add to the list whatever comes to mind!
Questions? Give us a call at 949-356-6400.