Questions to Ask a Mortgage Lender
When you purchase a house, it is one of the biggest investments that you will make. Finding the right mortgage payment is important to keep your costs down and to meet your monthly mortgage payments. It is important that you know what to ask your lender before getting a mortgage.
One of the first things that you should ask is the interest rate. Getting a low interest rate is ideal so that you will not be plagued with paying a big payment every month. Make sure that your lender is very well tuned with the mortgage market and he will keep you constantly updated when the rates change.
Next, you should keep in mind the mortgage fees. The lender will charge your extra fees once you sign up. Make it a point that you know the fees that are needed and that has to be paid out. You can ask for a summary on fees like the closing costs.
We usually wonder if we can pay extra on top of our monthly payments. This can get you ahead of your loan but it is better if you can request for a flexibility mortgage so that you do not need to incur penalties. This is one thing to consider. Read up on it and ask you lender the details on the benefits of getting a flexible mortgage.
Mortgage rates tend to go up and down depending on the economy. Ask your lender about this and maybe he can give you another type of mortgage that can secure the interest rate in a certain period of time. In a rising market, you can have a fixed rate so that you do not have to pay more. You should have that flexibility to switch between fixed to variable loans, without paying any fees in the process.
Today, a minimum of 20% deposit is required. Ask your lender this as well because some lenders may just ask for 3-5% down payment, but you are asked to pay mortgage insurance as a result. Again, this will depend on your finances or your budget. It is important that you sit down with your lender and discuss the mortgage that will fit you the best.