Important Questions to Ask Your Lender

Buying a home is exciting and also extremely overwhelming. You probably already have a long list of questions to ask your lender. However, we have some important questions we want to make sure you include on this list so you don’t miss out on helpful information!

1. Which Type of Mortgage is Best for Me?

When you speak with your lender, you’ll want to make sure you ask them what mortgage will work best for you. There are different options, and your lender should help you determine which of them is best suited to you.

There are conventional loans, fixed-rate mortgages, adjustable-rate mortgages, and more. Your lender will be happy to explain each of these and why one will be better for you over others.

2. Do I Have to Pay Mortgage Insurance?

Are you putting down less than 20% towards your mortgage? If so, you will most likely be paying mortgage insurance.

Be sure to ask your lender how much the insurance will cost you. It’s also always worth an ask to see if there are other options, such as a loan program that doesn’t require mortgage insurance.

3. What Will My Monthly Mortgage Payment Be?

It’s always a great idea to have an idea of what you will be paying each month. Knowing how much you need to set aside each month will help you decide if you’ll be able to make these payments or not.

Along with this, it’s also a good idea to ask if there are any penalties for paying off your mortgage early.

4. What Are My Estimated Closing Costs?

Along with your down payment, you also need money set aside for your closing costs. Your closing costs cover a wide range of additional fees such as loan origination fees, application fees, title fees, and so on.

We recommend checking with your lender to see how much you will owe in closing costs so you are fully aware of how much you’ll need to provide. If you are worried you won’t be able to cover all of the closing costs, you can also try to negotiate certain fees and even see if the seller will cover some of the fees.

5. How Long Does the Process Take?

You’ll want to ask your lender for an idea on how long it will take until closing. This is important to know so you are aware of when to have everything taken care of on your end.

We suggest keeping an open line of communication with your lender so you both can explain what you need from one another. This helps keep the process smooth, and won’t cause the process to slow down because of missed paperwork and so on.

If you’re ready to ask any of the above questions, or have more questions of your own, Team Crescenzo will be more than happy to help. Contact us today!