There are a number of questions that you will have once you decide you want to buy a house. Here are the first four questions out of the gate that you need to ask your mortgage lender.
What mortgage types do you offer?
A conventional loan may not be your best bet. Consider other types of mortgages. These loans can differ in the amount offered, interest rates, length and payment type. Common mortgage types include the following: Federal Housing Authority (FHA) mortgages; Fixed-Rate Mortgages (FRMs); Adjustable-Rate Mortgages (ARMs); and Jumbo Loans to name a few.
What is the interest rate?
You will get a loan offer and an interest rate based on your credit. The interest rate, along with the mortgage balance and loan term, will determine your real monthly payment. A loan with a lower balance or a lower interest rate will make for a smaller monthly payment.
What is the monthly mortgage payment?
As you develop a budget for your new home, make sure you can afford the monthly mortgage payment — and be sure to include insurance and taxes in your monthly payment calculations. And don’t forget about short-term financial goals — say, saving up for a vacation or buying a new computer — and long-term retirement goals to consider. Your monthly mortgage payment shouldn’t be so high that your money can’t work toward your other financial goals.
What can I do to avoid slowing down the process?
While your mortgage lender will have specific recommendations to ensure speediness, here are some general recommendations. Fully complete all required documents; be readily available to answer any questions; be prepared to explain any past credit issues; go over your credit report for errors; and, do not take on any new debts, switch jobs or change careers during the process.
These questions are designed to get you started. There are more, so talk to one of our mortgage loan experts at Chelsea State Bank. Contact our office by phone: (734) 475-4210 or online.