The Right Questions to Ask a Lender Before Committing to a Mortgage
The Right Questions to Ask a Lender Before Committing to a Mortgage
Even though the premise of getting a mortgage is the same regardless of where a Glendale home buyer goes, the actual mortgage can vary lender to lender. A mortgage is provided to a buyer to make a purchase on a Glendale house through their lender. The terms and conditions that come with that mortgage can change by a lot, with every lender providing something different.
Before committing to one lender and a mortgage a Glendale home buyer has to get all of the facts by asking the right questions.
Start With the Basics
Some lenders may offer more mortgage types than others. This is the first place to start with any lender, especially if there is a certain mortgage the Glendale buyer already has in the mind.
Common mortgage types can include fixed rate, adjustable rate, interest only, and negative amortization. Each one can present benefits and drawbacks depending on the borrower. Ask the lender to go over what each mortgage will mean to them if they were to offer it to a borrower.
The Extras
Knowing how much a bank may offer for a mortgage is a good start. However, knowing the total cost of getting a mortgage through the bank is a better way to choose a lender.
Always check what fees the lender will charge. There are a number of fees that they can include which can really stack up in the end when closing on the loan.
Offered Rates
The interest rate is arguably one of the most sought after pieces of information a Glendale buyer can get from a lender. The better their interest rate, the more money a home buyer can save in the long run. Asking what the average interest rate is does little good to a home buyer. Interest rates depend greatly on a borrower’s credit score.
Prepayment Penalty
Some loans have a clause that will charge a Glendale borrower a penalty for paying off their loan early. Not all areas allow these prepayment penalty on loans, but it is good to check with each lender.
Few homeowners who do not plan to live in one house or one area for the rest of their life are going to want to pay off their loan early. Know what the penalty is for that early pay off before signing for the loan.
How Long the Process Takes
Banks all have different time frames for how quickly they will process a loan. A Glendale borrower that needs a shorter process timeframe has to make sure this is plausible with their lender. Some borrowers think they will have their new home within a few weeks while the process really takes up to a few months.
Having reasonable expectations is important when searching for a mortgage. First-time Glendale home buyers may mistakenly think that every mortgage is created equally. But this is far from the truth.
Each mortgage type and each lender brings different terms to the table. These terms are what a Glendale home buyer must understand to be able to choose a mortgage that best fits their situation.