Four Important Questions to Ask Your Mortgage Lender
When you’re applying for your first mortgage, it’s easy to get swept up in the complexity of the process and simply rely on your mortgage lender – the expert – to walk you through from start to finish. When entering into a high-stakes financial commitment, however, it’s wise to take an active role in the process. Make sure to ask the following four questions before agreeing to the terms of a mortgage loan.
What types of mortgages do you offer?
Home loans are not one-size-fits-all, so it’s important to explore your options. Ask your lender to explain each mortgage instrument they offer, from FHA loans to jumbo mortgages, so you can make an informed decision.
How do I know you’re giving me the best interest rate possible?
You want a lender you can trust, and the answer to this question may shed light on the lender’s practices, customer service skills, and personality. Each will play a role in your decision to borrow through their company.
What are my estimated closing costs?
Most borrowers zero in on the down payment and monthly payments, but understanding how much you’ll pay at closing will give you the full picture of your short-term financial commitment.
Are there any fees I should know about?
Many a borrower has been surprised by a hidden fee, whether for the mortgage application, the appraisal or homeowner’s association fees, just to name a few. The lender should make it a priority to highlight any such costs for you, but taking the proactive step of asking means you won’t be blindsided.
Any mortgage lender worth their salt should be able to easily answer these questions, and they should invite you to ask as many as you need to in order to feel comfortable. After all, purchasing a home is the ultimate financial commitment, and on that you – and your lender – should treat seriously.
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