WHAT QUESTIONS SHOULD I HAVE WHEN LOOKING FOR A NEW MORTGAGE
Having a list of mortgage questions is just the start. Knowing the answers to your mortgage questions you have helps you get ahead of the mortgage process.
1. Which type of mortgage is best for me?
This question always helped me separate myself from other mortgage brokers or advisors in my industry. When asked, “What are my options?” for each type of loan discussed, I’ve always discuss the pros and the cons of the individual’s unique position or circumstance.
2. How much down payment will I need?
A 20% down payment is usually ideal, but there are different choices depending on your qualification. Qualified buyers can find mortgages with as little as 3.5% down, or even no down payment. There are always unique considerations for every down payment option. I look forward to walking you through each option. Contact Rich Surek Here.
3. Do I qualify for any down payment assistance programs?
I value my experience combined with knowledge of local, state and national down payment assistance programs. If you have this question, now more then ever you need help to navigate the mortgage process for purchasing or refinancing your home.
4. What is my interest rate?
Sure, you’re going to ask this one. It’s the something we can all usually have an idea about.
My guess is you may have already looked online and shopped what nationwide rates are, maybe you already have an interest rate you’ll may qualify for. Let’s say it’s 4-5%. We’ll call that your payment interest rate because that’s what your monthly mortgage payment will be based on. Knowing that, we need to move on to the next part of the question what is my annual percentage rate, or APR.
This may be effected because we may be discussing an adjustable-rate mortgage rather than a fixed-rate loan. We’ll next discuss when is the payment interest rate adjusted? What is the maximum annual adjustment? What is the highest cap on your interest rate?
5. Are you doing a hard credit check on me today?
It’s always good to know when the lender is going to perform a “hard” credit check, called a “hard pull.” That type of payment history inquiry shows up on your credit report. I will need to do this to give you a firm interest rate quote, but I can discuss options before doing this for you. Contact Rich Surek Here.
You should stop shopping more than one source everyday, you’ll want these hard credit pulls to occur within a short period of time — say within just a week or so — to minimize the impact on your credit score. While working with me, I can assure you the best outcome for any situation you may be in to also help minimize the need to shop for mortgages any further.
7. Do you charge for an interest rate lock?
You may want to lock in your interest rate. This ensures that your interest rate doesn’t go up, though your interest rate won’t go down, either. The basic answer is there is no charge for me to lock your rate.
8. Will I have to pay mortgage insurance?
If you put down less than 20%, the answer will probably be “Yes.” Even if the mortgage insurance is “lender paid,” it’s likely passed on as a cost built into your mortgage payment, which increases your rate and monthly payment. You’ll want to know just how much mortgage insurance will cost and if it’s an upfront or ongoing charge, or both.
I will walk you through other loan programs that you might qualify for that don’t require mortgage insurance “PMI.” I may also suggest a higher down payment for some loan products as well.
9. What will my monthly payment be?
This is one of the more important questions anyone should ask me. Knowing what your monthly mortgage payment will be is kind of key to the whole deal. You should also want to know if there is any prepayment penalty if you pay off the mortgage early or refinance later. I would like to go through every detail so you know and more importantly understand the options, even including tax payments, home owners insurance, condo or HOA fees are all in front of you when you make your decisions.
10. What are your fees?
Everyone should have what their clients closing costs and/or any real estate fees that are going to be addressed when we close. I don’t like leaving anything to chance or to be left out on any transaction which could spur questions that may come after you close and didn’t understand beforehand. No question is wrong to ask, this one is crucial because it separates the advisor’s role from a salesperson’s.
11. How often will I be updated on the loan’s progress?
Having a single point of contact throughout the mortgage loan process and/or real estate transaction is IDEAL. I pride myself on being one of very few out there that can help anyone through both sides of a new home loan. How I will update you on the progress of your loan: by email, phone, video chat, or of course in person!
12. How long until my loan closes?
You obviously want to know what your target closing and move-in dates are in a home purchase transaction so you can make preparations. Just as important is how long your refinance can be to help settle your payment structure. Note: I’ll advise you on what to do with your purchasing or anything else that can effect your closing properly in the meantime.
Richard Surek | Senior Mortgage Advisor | 608-960-4363 | firstname.lastname@example.org | richsurek.com