Buying a house is very exciting for any individual but it brings a lot of challenges. People who do not have adequate knowledge about the financial sector often misunderstand mortgage loans. We completely agree with the fact that buying a house and that too with a loan is not very easy. So are you planning to buy a new home? We are going to explain to you some questions that you must ask your mortgage lender. This will help you in getting a clear idea of what the company is offering. Hence, users must not refrain from asking these questions to the agent.
Top questions to ask your mortgage lender
1. What will be the total payment monthly?
The very first question that you must ask your mortgage lender is the total amount of money that you will have to pay every month. The reason for asking this question is that you need to pay some fixed amount of money form of registration fees and insurance. It is approximately 20% of the value of the property. Hence, the user must be aware of how much savings will he have to give to the mortgage lender every month.
2. The rate of interest
This question will probably help you to compare different mortgage lenders. The rate of interest is something that is most crucial. The company which offers you the lowest rate of interest is the best. It helps in reducing the monthly installment that is told to the land. The rate also depends on your credit score.
3. Do you charge an additional/hidden fee?
There are many companies that will not tell you about the loan processing fees or the other hidden fees. This will result in you doing a higher monthly installment to the company. Hence, which is a better option to understand all the additional fields that are charged apart from the interest rate. The agent is liable to tell you each and every detail about the loan fees and interest.
This a very crucial question because you must know the amount that you have to pay upfront to the mortgage lender. It is basically the amount that the home buyer must pay in the form of property tax and other fees. It will give you a rough idea of how much you will have to pay upfront apart from the monthly payment. Moreover, the homebuyer must also ask if he has to pay the insurance fees upfront. Hence, you can decide if it fits in your budget or not.
5. Why do mortgages get declined?
Imagine having planned everything and your mortgage lender declines the payment at the last moment. This happens quite often when the lender finds it risky to approve the loan. Hence, it is better to ask the company directly about the previous cases where the company has declined payment. This will help you in understanding if your mortgage loan will be approved or not. In case you feel no, you can approach other companies or non-financial lenders. Hence, everything must be clear beforehand.