5 Questions to Ask When You Apply for a Mortgage
If you’re looking to purchase a home, it is important that you fully understand your financing options before you begin house hunting. Without the proper research, knowledge and questions, you may not get the best product or the best price. Be sure to ask our questions below when you visit the Home Point Financial branch nearest you.
1. What’s the interest rate?
One of the first things you should ask for is a direct interest rate quote and the corresponding annual percentage rate (APR) for the loan for which you are applying. Because the APR accounts for fees and other loan-related charges, it is best to ask for this first to ensure this type of mortgage is something you can afford.
2. What fees do I have to pay?
There are a variety of one-time fees, which are referred to as points, that are due at closing. Be sure to ask how many points your interest rate includes and what those points are for, because for every point you pay, your lender will decrease your rate by 1%.
3. When can I lock in the interest rate? Will it cost me to do so?
Interest rates can fluctuate from the time you apply for a mortgage and closing. If you are worried about this, your lender may be able to lock in your interest rate for a time. While this does usually cost extra, it can help you save in the long run with a lower interest rate.
4. What are the qualifying guidelines for this loan?
Just like the income and reserve requirements differ depending on the loan you choose, the guidelines are different as well. It’s important that you fully understand the loan for which you are applying, so you can do your own research on it.
5. Do I qualify for other products with lower rates?
If you’re looking to shop around, the best way to do so is to start with your current lender. Most lenders offer different types of loan programs, and they may have an option that is better suited for your current financial situation.
Apply for a Loan Today
If you’re ready to begin talking to a lender about which mortgage option is best for you, trust the professionals at Home Point Financial to find you the best loan for your current situation. For more information or to get started on this exciting process, please contact us today.