There is much you need to know, and understand, about a mortgage and it’s difficult for anyone know all the right questions. That’s why we created this list of questions to help you know what to ask your lender.
Before choosing a lender and filling out an application for your mortgage loan, make sure all these questions are answered to your satisfaction. (And, of course, any other questions you can think of).
For All Mortgages
- Do you offer a fixed-rate loan?
- What points can I expect to pay at closing? (Remember, one point is 1 percent of the loan.)
- What other fees can I expect to pay?
- Are funds available for a second mortgage?
- Is there a prepayment penalty clause?
- Would my loan be open-ended?
- What is the grace period of the loan?
- How late can a monthly payment be made before a late charge is assessed?
- What will happen if I miss a payment?
- Is this an assumable mortgage?
- Do you require me to carry mortgage insurance?
For Adjustable Rate Mortgages:
- How often will the interest rate be adjusted?
- Is there a maximum limit on each rate change?
- How often will the monthly payment be adjusted?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?
- Can I convert the adjustable loan to a fixed loan at a later date?
- Can I lock in my interest rate? For how long?
Buying a home is a long-term commitment, and getting the right loan takes both time and energy. As always, if you have questions, feel free to contact us at any stage of the process.