5 questions to ask your mortgage lender
Speaking to a mortgage lender is one of the first steps that you must take when you decide to buy a home. Since this is a huge investment, it is important to know as much as possible about the professional who will guide you through the loan process.
These are 5 questions you may ask when you meet with the lender.
1. What documents do I need to provide?
You will have to provide proof of income such as most recent paystubs, W-2´s for the past two years, tax returns, etc. You will also need to provide bank, credit and personal information. Read our article Loan application check list to find out more documents you will need.
2. How long will it take to process my loan application?
The answer will depend on how busy the lender is, but also how quickly you turn in all the documents. Since there are other professionals involved such as inspectors and appraisers, the time is also subject to them. However, it can take from two weeks to two months.
3. What mortgage types do you offer?
Each lender works with different types of mortgages. These are some of the most common types of mortgages than can be mentioned by your mortgage lender:
• Veterans Affairs (VA) mortgages
• Federal Housing Authority (FHA) mortgages
• Navy Federal
• Conventional loan
4. What is the interest rate in this mortgage?
The lender should have the answer at the tip of his tongue. The interest rate includes the annual percentage rate or APR, which accounts for fees and other loan related charges. This number gives you an overall idea of the mortgage cost.
5. What´s the difference between a fixed rate and an adjustable-rate mortgage?
Fixed rates do not change over time, while adjustable rates begin with a fixed period, but then they go up or down depending on the market. Usually you get a lower initial interest rate with an adjustable rate, but this rate might increase over time.
For more information or clarification on the mortgage process, please sign up within the pre-approval page or finance page so one of our lending partners can answer your questions and guide you through the lending process.