What Questions To Ask Your Mortgage Lender?
Your mortgage lender can be a wealth of knowledge when it comes to financing and closing a deal on your new Port Alberni home. These are the people who are intimate with the processes happening behind the scenes to get all the paperwork aligned for the purchase of a home, so you can ask for their advice on all things financial that your trusted Realtor may not have answers for.
Be sure to get the scoop on the money matters by bringing these 4 questions to your next mortgage lender meeting so that you will have the most accurate and up-to-date information regarding how the financial process will work in conjunction with the Real Estate purchase you are about to make.
How much money do I need to put as a down payment?
To get the best possible rate and terms for your loan, it’s usually recommended to put down 20% of the home’s value. However, a lower down payment doesn’t necessarily disqualify you.
The amount you decide upon for a down payment will affect other variables of the home sale as well, such as your rate, terms and monthly payments. So feel free to ask your mortgage lender about the minimum down payment required for your loan and decide what will be the best decision for you based on your needs rather than just the going rate for down payments.
What are the estimated extra fees for buying the house?
Be sure to factor in the various fees that are associated with buying a home, especially the closing costs. These can include loan-origination fees, appraisal fees and attorney fees, just to name a few. You can ask your mortgage lender to estimate what the closing costs could be so that you can plan your budget accordingly. The more information that you can collect prior to making any big home-buying decisions, the better. This will help you be well prepared for what could arise, and make the closing of buying your new Port Alberni home easy.
Are there any special requirements to be aware of?
There is a long list of qualification guidelines for home buyers looking to finance a house. Typically the requirements relate to your income level compared to the amount of debt you have accrued your employment status and credit history. However, if you are a first-time home buyer, you may be eligible for special government-sponsored mortgage programs. This is something that your loan provider can assist you with as well, so be sure to ask for their advice.
What is the estimated time before closing?
Your mortgage lender can help you to determine if there are any issues that could possibly cause a delay to the deal. There are many things that can hold-up the process, many of which are entirely out of your control. However by staying in contact with the mortgage lender and delivering the most accurate and up-to-date documentation required is the best way that you can avoid delays.
Ask your lender for an estimate as to when closing might be expected so that you will have an idea of how long the process will take, and then follow-up throughout to stay on top of any curve-balls that can be thrown your way.
As always, if you have any questions that can’t be answered by the mortgage lender, please feel free to Contact Us and we will do our very best to advise you, so that you can get settled into your perfect Port Alberni home.