Who isn’t excited about the idea of buying their next home? Home is your biggest investment and you must look into every detail before buying one.
Not everyone can afford to pay in one go, but that doesn’t mean you do not have other options to buy your dream home. Apply for a home mortgage to a reliable mortgage company.
Do your research before hiring a mortgage broker and prepare a list of questions. Asking questions to your mortgage agent is important because years of your life can depend on the answers you get. The more your broker knows about you, the better advice and assistance will he be able to provide you.
Here is a list of potential questions to your mortgage agent before you commit to a loan-
1) If your credit score is not good, will you still get your loan approved?
The first thing an agent will check is your credit card score. So it is better to clear off all the debts before you apply for a mortgage. Even if you have a low credit score, let your agent know since he can provide with various solutions and loans that will accept borrowers with a low score.
If your card score is low because of errors that don’t exist, then be ready to present the financial history.
2) Being a first-time home-buyer, how much do you need to pay as a down payment?
In case of a mortgage, aim for at least 20 per cent of down payment. That will get you better terms of the loan and you can avoid paying for Private Mortgage Insurance. If you cannot afford to pay 20%, then do not put down it to lower than 10% since it will cost you extra interest and fees.
3) What documents will you be asked to provide?
Your mortgage agent may ask you to show bank statements of your accounts, two years’ worth of tax returns or two to three months of consecutive pay stubs apart from credit score. If you want your work to be done on time or as early as possible, then collect all the documents to represent it to your agent.
4) Are property taxes included in your monthly mortgage?
Lenders often roll property tax into borrower’s monthly mortgage payment, but many private lenders calculate your annual property tax burden to estimate your tax payment. If you are paying more property tax, then you may get a refund. If you are underpaying your property taxes, then you will be asked to make an additional payment.
5) What are the closing costs?
Closing means you are on the verge to complete the mortgage process. Hire a professional mortgage agent who can provide with the breakdown of following costs-
- Title insurance and Home insurance
- Escrow accounts and Private Mortgage Insurance
- Recording and transfer costs
- Flood certification fee
- Survey fee
- Discount points to get a low-interest rate
- Loan preparation fee
- Title search fee
- Attorney costs for closing the loan.