Calling on the expertise of a mortgage broker will make it easier to get the right home loan for you and your family. Take the time to ask the following questions to ensure you understand everything about your mortgage.
1. What Home Loans are Available?
can typically find you any type of home loan available, but there are times the offerings of various lenders don’t include all kinds. Make sure you find out if you are getting the most comprehensive selection possible.
2. How Do I Qualify for a Home Loan?
Some types of home loan programs have specific qualifications you must meet in order to get the mortgage. Your credit score and ability to pay the loan back are essential elements of getting qualified.
3. Which Home Loan is Best for My Situation?
Your mortgage expert should be able to find the best type of home loan for your exact situation and level of qualifications. Find out about home loans that help with veterans, troubled credit, and other criteria. The CMS Mortgages website is a useful resource if you would like to learn more information.
4. What is the Difference between Prequalification and Preapproval?
Being prequalified to get a home loan is different from a preapproval. Being prequalified is the process of gathering basic information to determine which type of loan you qualify to get. Preapproval requires gathering the actual bank statements, other documentation, and credit retrieval to see if you are approved for a home loan.
5. What is the Amount I Can Borrow?
Your mortgage broker can help you through the process of getting a home loan approval that’s based on your ability to repay. You will be given the specific limit you can borrow after approval.
6. How Much Down Payment Do I Need?
The amount of down payment you need to purchase a home is generally 20% for a conventional loan. USDA and VA home loan programs can get you 100% financed. Other low-percentage down payment programs are available, such as an FHA loan.
7. What is the Interest and Annual Percentage Rate?
Each lender may offer a different interest and annual percentage rate for home mortgages. The interest is the percentage you pay for the actual loan. The annual percentage rate includes the closing costs with the loan.
8. What is My Home Loan Estimate?
Your home loan estimate will break down all the costs associated with the mortgage. It will show you the payment amount, fees, and terms to make you fully aware of where your money is going. Ask for an itemized breakdown if one is not immediately offered.
Always ask your mortgage professional when there are areas of a mortgage and the mortgage process you don’t understand.