Home buying or refinancing your home is a stressful experience, especially if you do not know what to expect out of it. Thus, you want to make sure that every decision is carefully made. In order to do so, you need to make sure that you choose the best lender and ask the right questions before hiring one.
Although there are many Mortgage Lender
in the city that can offer you various king of services, but none second the Sammamish. They have been in this industry for more than twenty-five years, and they under what exactly their clients need. Besides, you will also get competitive rates for your loan.
Here are some questions to ask your lender.
Which Loan Suits You?
There are many different types of loans available in the market. You could choose from either fixed rate or adjustable, short-term loans or long-term loans. Know from your lender, which type will be suitable for your financial situation.
How Much Can you borrow?
Knowing how much you can borrow makes the whole process, of your buying a home, a smooth one. You lender can tell you how much you can afford by checking your credit history, income level and your employment status. If you are a military veteran you will get government-sponsored mortgage loans.
How Much Will Be The Down Payment?
You can get good terms on your monthly payments and interest if you can put at least 20% of the purchase price and is ideal for every lender. However, as a qualified borrower, you can even make 3% as down payment or sometimes no down payment will be needed. Ask your lender for more information related to this and they will walk you through the available choices.
If you are making the down payment less than 20% ask your lender whether you will have to pay mortgage insurance and how it will be charged.
How Much Will Be The Interest Rate?
Apart from interest, your loan may also include some other fees. Ask your lender about the annual interest rate and other loan related charges so that, you can compare between lenders to choose the best one.
If your loan has fixed interest rate, your monthly payments will be stable over the period of your loan. On the other hand, if your loan has adjustable interest rate, your monthly payments will vary depending on the market. Know from your lender how often will the interest be adjusted?
Also ask your lender whether you can buy discount points by paying extra fees upfront and how many points will be beneficial for you.
Can You Lock In The Interest Rate?
When the interest rate is fluctuating, locking in a low rate can really yield you the profit though lower interest rates will be offered for short-terms only. You may want to lock your interest at some point. Ask your lender whether they charge on interest rate lock.
How Much Will Be The Closing Cost?
At the closing time of your loan, there will be additional costs charged like origination fee, appraisal fee, attorney fee and so on. Ask your lender to provide you the loan estimate that gives you an approximate cost so that you can plan your budget accordingly.
When Will Your Loan Close?
Buying a home and moving-in are not an easy process. Ask your lender for an estimated period for closing your loan. It depends on various factors. Keep in touch with your lender to avoid any unnecessary delays in the process.
Do your research and ask questions for a smooth home loan process.