Committing to a mortgage is no small deal. From arranging for a lump sum down payment to deciding a fixed interest amount each month to digging into the closing costs, there are numerous aspects to research. That is why home buyers are always on a hunt for a reliable mortgage broker who can help put a full stop to the endless hassle and help search for the right type of loan programs for them.
Mortgage brokers know the nuances of the industry and can give you advice, assistance, and accurate information that no one else can. They can help steer you in the right direction and aid in choosing amongst distinct loan options. So, no matter it is your first mortgage, a refinance, or a second, having an elaborated conversation is necessary.
Here are the basic questions that you must ask your broker –
Q1. Which loan program is the best for me?
You cannot just barge into the office of a broker and ask what loan options they have for you. You have first to share all the necessary information before they recommend a particular type of loan to you. Fixed-rate loans, adjustable-rate loans, interest-only loans, and others come with their pros and cons so once they have your details, they can help you find out the right fit.
Q2. What will be its total cost?
A mortgage broker is required to mention all types of fees in his/her loan estimate. It includes the loan interest rate, along with charges such as closing fees, taxes and insurance. You also get an estimation of your monthly payment. Based on the figures given, you can make your final call of whether to apply for it or look for other viable options.
Q3. How can I prepare my loan application?
Every mortgage broker has a checklist of paperwork and formalities that you need to fulfil before applying for a loan. So, when you get clarity on the type that is appropriate as per your needs, gather documents at the earliest. Usually, the paperwork you require is basic for all; thus, it is best to arrange for them beforehand.
Q4. Can I lock my interest rate?
If you have had an experience with mortgages in the past, you know how unexpectedly interest rates can fluctuate. That can be detrimental to your finances, especially if the interest rates move up. However, some lenders lock in your loan rate in exchange for some fee. So, discuss that aspect and ask about their fee and time duration of lock-in. Make sure you get that in writing.
Q5. How long will it take to process my loan application?
Your loan processing time can take anywhere from thirty to forty-five days, depending on what city you are in and what is your loan type. But, you must ask your broker for an anticipated time that is needed to fund you the loan so that you can make other related decisions.