5 Questions To Ask Your Mortgage Lender

Lets start with what a mortgage Lender does ->  A mortgage lender is a financial institution or mortgage bank that offers and underwrites home loans.  They are responsible for setting the terms, interest rates and creating a payment schedule for a mortgage borrower. 

  • What type of Loan do you recommend for me and why?

    • There are many different types of loans to choose from that your lender can explain to you.  Depending on what you choose, it is important to know why it is the best for you and how the loan terms work.

  • Will a down payment vary based on the loan I choose?

    • Loans can vary on down payment requirements.  It's important you inform your lender on your financial status and your cash flow so you cand find a loan that you feel comfortable with.

  • What is the interest rate and annual percentage rate (APR)?

    • The interest rate and APR are just as important as one another.  The APR is a combination of the interest rate and the fees a lender charges to originate the loan.

  • Can I lock in an interest rate? If so, for how long?

    • Right now Interest rates are at an all time low, based on this it would be wise if you are already a homeowner to think about refinancing your mortgage. If that wasn't the case today and there was a chance rates could go up, you can ask your lender to lock in your rate for a specific period of time.

  • What will my closing cost be?

    • Closing costs usually run about 3%-6% of the loan value so be sure to know how they will be covered.

It is important you understand this process.  Be sure to ask your lender questions for clarification on things you might not understand so you can be fully prepared to make informed decisions.