Buying your first home? Finding the right mortgage company is a key part of the process, and you should take the proper steps to ensure you do it right.
Here are some questions for you to ask your mortgage professional so you can be confident you have chosen the best mortgage company for your situation:
- What is the interest rate and Annual Percentage Rate? Bear in mind that if you are getting an adjustable-rate loan, there is no accurate way to calculate the APR, so be certain you ask about the adjustment frequency, maximum annual adjustment, and cap.
- What are the discount points and origination fees? Discount points are a way you buy down the interest rate by paying a higher down payment, so this may be worth pursuing. Sometimes, the seller may pay some of the points. Sometimes, in addition to points origination fees are assessed, so make sure to ask about them.
- What fees do you charge? Always ask for a full breakdown of all fees the lender charges.
- What else is due at closing? Ask your lender what the closing costs are, such as appraisal and property taxes. You don’t want a sudden bill on closing, especially if you are lower on funds.
- Is there a prepayment penalty? Prepayment penalties are a penalty charged if you pay the loan off early, which can become due if you refinance later. Some states have made these illegal. Some lenders will allow you to avoid the penalty if you refinance the loan through them.
- Do I qualify for any down payment assistance programs? This is the question that separates the excellent mortgage professionals from the rest. If they don’t have an answer, look for another loan officer. A good loan officer will know about these programs and will help you determine if you qualify for any of them.
When looking for a lender, make sure to ask these key questions, which will help you determine how much loan you can afford and also compare lenders properly. First Home Mortgage and have years of experience helping people buy their first home. Drew Gilmartin is a true professional in the mortgage business, understanding the different loan options and assistance programs to best meet your needs. Contact Drew today for more details.