Are you looking to purchase a new home? In case you plan on borrowing either some or most of the purchase price of the house, you must get prepped for the entire mortgage process. We have outlined four key questions that you should ask your mortgage professional as you begin working on your home loan.
What’s The Best Mortgage Option For Me?
It is common knowledge that there are an array of mortgage loan options as well as programs available today. You may be eligible for several mortgage loans as well as a few government programs or specialty mortgages. For each kind of mortgage loan, your mortgage advisor can assist you in discussing the pros as well as cons to help you opt for the right option.
What Interest Rate And Amortization Period Fit My Budget?
The next step involves determining the combination of the loan term and interest rate that result in an affordable monthly payment for you. For instance, in a few cases, a lower interest rate may be preferred over a longer amortization period such as 20 or 30 years, which essentially decreases your monthly payments. Alternatively, you may wish to pay back the loan faster and opt for a shorter term with an interest rate that is slightly higher.
What Fees And Closing Costs Will I Incur?
When borrowing a mortgage to purchase a house, a few additional costs and fees will be incurred. Some of them are associated with the home itself, including legal fees, home inspection or home appraisal fees. The rest of the fees are associated with the mortgage and are related to loan origination fees or discount points that you decide to purchase for the lowering of your interest rate. To learn more regarding the fees you must pay and those that you can avoid, consult your mortgage advisor.
What Documents And Paperwork Do I Need To Prepare?
Lastly, you may require some assistance regarding the documents and other paperwork that must be ready, such as those associated with your income and credit history and those meant for risk assessment purposes, including past income tax forms, pay stubs, bank statements, or other materials in case you’re self-employed. When you meet your mortgage advisor, these are a few points you must cover.
To learn more about the mortgage process and how you can get things started, get in touch with us today. Our mortgage team will be more than happy to answer any questions you might have!