When you buy a home, you’re in it for the long haul. You’ll have a mortgage payment for 15, 20 or 30 years, so it’s smart to shop around to find the best mortgage lenders out there. Choosing a lender might seem like a no-brainer if you go with whoever quotes you the lowest rates and fees. On the surface, that seems like a win-win strategy. But the lowest rates and fees can’t make up for poor service or a lack of transparency. To get the lowdown on how to cut through lending jargon so you know exactly what you’re signing up for here are 15 questions to ask your lender.
1. What are the most popular mortgages you offer? Why are they so popular?
2. What fees are included in a loan; and what fees will be due at closing?
3. Are your rates, terms, fees and closing costs negotiable?
4. Do you offer discounts for inspections, homeownership classes or setting up automatic payments?
5. Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required?
6. What are your escrow requirements?
7. What bill-pay options do you offer?
8. What would be included in my mortgage payment (homeowners insurance, property taxes, etc.)?
9. Which type of mortgage plan would you recommend for my situation?
10. Who will service this loan—your bank or another company?
11. How long will the rate on this loan be locked in? Will I be able to obtain a lower rate if the market rate drops during the lock-in period?
12. How long will the loan approval process take?
13. How long will it take to close the loan?
14. Are there any charges or penalties for prepaying this loan?
15. How much in total will I be paying over the life of this loan?
Even if you’re just beginning to think about buying or refinancing a home, it’s wise to talk to a lender early on to learn how you can set yourself up for success when the time comes. The emerald coast is lucky enough to have several reliable lenders in the area. Need help navigating the real estate market? Connect with us so we can get you started on your real estate journey!