Top Questions To Ask Your Mortgage Broker
Prior to committing to a loan, you want to be certain that you get all of your questions answered. It is very important to ask any question that you might have prior to making your decision. Below, we will be going over some of the top questions that you should ask your mortgage broker.
Top Questions To Ask:
1. What’s the Interest Rate?
Perhaps the first thing that you will want to do is be certain that you are aware of the interest rate and the annual percentage rate. Knowing these things is crucial to being able to really tell how much you can expect to pay. You want to figure out what the maximum annual adjustment is, the margin, and more. Knowing the rate that you can expect to pay will help you determine whether or not it is one that you can afford. Therefore, you want to be sure to nail down these details prior to agreeing.
2. Down Payment?
Another important thing that you want to figure out is how much the down payment will be. While there is a typical down payment that is required which sits at 20%. However, that amount is not always fixed. Therefore, you might actually qualify for a lower down payment on the home and some might even be able to get away with only putting down as little as 5% or even less depending on the loan. There are always pros and cons to choosing a specific down payment amount. Therefore, you want to factor these into your decision to try to identify the best option.
3. What Are The Costs?
When you are looking to ask questions to your mortgage broker, you want to ask them what the costs will be. The costs of your entire loan will not only include the fees that go directly to the lender, but also the fees that you will be expected to pay to the third-party vendor. Therefore, you want to ensure that you are including all of the costs associated with the loan into the equation. Having an accurate estimate of all of the included costs is important to do prior to applying for a loan.
4. Is There A Penalty For Prepayment?
You want to see whether or not there are any penalties associated with prepaying. Figure out whether or not there is a penalty associated with paying the loan off early because it might handicap you to having to stick to your normal payment cycles. Some might be interested in prepaying the loan off if they have the extra funds. Therefore, you want to ensure that you are away from these terms prior to agreeing to them. While some prepayment penalties are only valid for the first few years, some might be for the entire duration. Therefore, you want to figure out the exact specifics prior to agreeing.
5. How Much Time Will It Take?
When you are looking to get a loan, you want to figure out the total amount of time that it is expected to take. The average processing time takes a month or so. Therefore, you want to figure out whether or not it is going to be done sooner or later. This will help to ensure that you are able to coordinate your date proper with your lender and they should be able to tell you whether or not you might have specific things that could hold up the process entirely.
6. Is There A Charge For An Interest Rate Lock?
Once you have decided on a lender, you want to look to lock in the rate in order to avoid having to deal with fluctuations in interest rates. After all, these rates are in a constant state of flux. Because of this, you want to lock it in to avoid having to worry about these fluctuations. You should ask whether or not there is a charge for an interest rate lock which will allow you to eliminate the chances of having your rates creep up during the process.
Summary – Working with A Belfast Mortgage Advisor
Overall, there are plenty of things that you want to get sorted and that you will want to ask your Belfast mortgage broker prior to choosing one. You want to find out the answers to each and every question that you have. You shouldn’t have any pending or unanswered questions when you are agreeing to a loan. Find a qualified expert that you can count on. You should question anything that you are unsure about because it will allow you to make a much more well-informed decision. Having all of the information and answers will really help you avoid getting into a situation that you didn’t want yourself to get in. By following the tips above, you should be able to get all of the answers that you need to feel comfortable making a decision.