Sometimes getting a mortgage loan can be challenging. When looking to start the home buying process, it is important to educate yourself about what questions you should ask your lender and what information lenders will require from you. The first meeting should be an introduction and consultation session in which you will learn about mortgage programs, current mortgage rates, mortgage terms, and other mortgage options that are available to you.
Before you schedule your appointment with the lender, it is important to learn about the different types of mortgages and mortgage terms associated with the various programs. These terms include:
- Annual Percentage Rate (APR)
- Interest rate
- Fixed Rate Mortgage
- Adjustable Rate Mortgage (ARM)
- Hybrid Adjustable Rate Mortgage
Discuss your options
During your first meeting with your lender, inform them of your budget and housing expectations. The lender will then go over your figures from your paperwork. After crunching the numbers, your lender will then provide to you a pre-approval letter based on your figures. This letter will notify you of your approved loan amount and the type of mortgage you are eligible for.
Make sure you have all paperwork prepared ahead of time as the lender will need these documents to calculate your income and debt ratios
Ask questions to your lender
Before you sign on the dotted line, ask some important questions to your lender.
- How much are closing costs and what will the down payment be?
- What is the APR and fees, penalties, and interest?
- Do you offer adjustable rate or fixed-rate mortgages?
- How long is the mortgage process?
- What will happen if I fail to make payments on time?
- Are there prepayment penalties?
- What documents do I need to provide to you?
Compare Different Programs
Don’t be in a hurry when comparing different loan options. Is it best to take some time before proceeding and determine which program is best for you. The above set of questions and tips will help you prepare you for the loan process.
Contact United Financial Counselors
We understand that the mortgage process can be scary, therefore, we are here to assist you with all of your questions about the home buying process. In addition, we offer Free Home Buyer Education Seminars and other counseling programs .To learn more about our financial services, please visit www.unitedcounselors.org.
** OUR NEXT FIRST TIME HOMEBUYER SEMINAR IS JULY 29TH 2017. Click here to register today!