What Questions Should I Ask A Mortgage Lender?

What questions should I ask a mortgage lender? Read here and find out what all mortgage applicants should ask before applying!

For many people, purchasing a home requires taking out a mortgage from a bank. There are hundred of mortgage lenders available who are willing to lend. Unfortunately, many lenders offer different products with different terms and stipulations which can make the process very confusing. This article discusses which questions you should a mortgage lender to ensure you get the best mortgage possible.

What fees do you charge?

The first question which should be asked is what fees are charged. Mortgage lenders receive a large portion of their revenue from fee income, and most mortgage brokers receive a commission based off of fees. Fees can be charged for loan origination, underwriting, and closing points to pay down the interest rate. Fees can often be as high as 2% of the mortgage balance. Be sure to get an understanding of the fee structure and compare it to other lenders bids.

What credit score do I need?

Another question which should be asked of a mortgage lender is what credit score is needed. Most mortgage lenders advertise a certain interest rate on their website, but that rate is normally required for only people with score above 740. Many lenders now require at least a 680 to approve a mortgage applicant. Be sure you understand which lenders can offer you the best rate based on your current credit score.

Is the Interest Rate Fixed?

The next question to ask is if the interest rate is fixed. Many people have gotten themselves into trouble by accepting adjustable rate mortgages which have adjusted and caused their payments to be unaffordable. Be sure your mortgage interest rate is fixed so you know what your payment will be throughout the term of the mortgage.

What Questions Should I Ask A Mortgage Lender?

Related posts:

Leave a Reply