Purchasing a home is one of the biggest decision a person can make. It’s not just that they’re picking a home they will love, but they’ll also be taking on a lot of debt. People will spend hours and hours looking at different homes before deciding on which one they ultimately make an offer on. Yet, when it comes to getting the mortgage for the home, they’ll go online fill out a form and then spend some time on the phone talking to an agent about what they can afford.
If you’re planning to purchase a home, you want to put as much thought and research into the mortgage you’re going to get for your home. That company that you found online might be quoting some nice numbers, but their could be fees included you’re not aware of. Or their could be better
options because of your credit history and financial situation.
There are a number of excellent mortgage lenders in the Dubuque area. They’ll be glad to sit down with you to review your finances and go over your options for a mortgage. In fact, going in you might want to have questions in mind to ask them. To truly know what all your costs will be and what you can do to get the best possible deal. Even if you’re satisfied with the first one you meet, you want to talk to at least 2 or 3 lenders to compare what they’re offering.
Buying a home often means taking on a lot of new debt. So put the time and effort into researching the mortgage as you do on the features of the home you want to buy. Here are 10 potential questions you might want to ask your mortgage agent when you decide on who your lender should be.
How much can I afford to spend on a home? This is the big questions for most people as then they’ll know the price range they can look for homes in. One of the first things you should do is to get preapproved for a home mortgage even before you begin looking for a home. This way you’ll know the price range you can afford when looking.
What types of mortgage should I choose? Mortgages are available with either fixed rates or adjustable rates. There are advantages to each and your potential lender can go over these and help you decide.
What interest rate will I pay? Interest rates fluctuate. You want to know what the current interest rate is and how that impacts your costs.
Can I lock in the current interest rate? If the current rates are excellent, you might want to lock them in, in case they increase while you’re still house hunting. Your lender can tell you whether this is possible.
What is the minimum down payment I can make? If you’re putting down less than 20% then you’re likely going to have to take out PMI insurance. This is an insurance you’ll pay until you reach that 80% equity threshold.
How does my credit rating impact my costs? Your credit ranking will have a definite impact on your loan, particularly if you’re having to pay PMI insurance. This is why you should do what you can to improve your score before even beginning the house hunt. Hitting certain thresholds could help lower your costs.
What are points, and do I have to pay them? A point is 1% of your mortgage. There are two types of points you might pay, origination points and discount points. One of these might benefit you, while the other could result in additional costs. Your lender will go over both and how they impact your specific loan.
What documents will I need to provide you? You’ll likely have to show proof of income and your assets to your lender. This may include bank statements, tax returns, W-2 forms and recent pay stubs. They may also require additional information about loans and other costs you have.
What other costs will I have to pay at closing? There are fees associated with purchasing a home and your lender and Realtor will be glad to go over these. You don’t want to be surprised at some fees you weren’t aware of as you get ready to close on a home.
How long will it take before my mortgage is finalized? Even if your pre-approved before you start looking for a home (which you should consider doing), the actual loan process can take time. Your potential lender can give you an idea of how long this might take and if it will delay you getting into the home of your dream.
If you’re ready to start searching for home and don’t know where to begin, contact one of the experienced Realtors at American Realty. We can give you the names of a number of local lenders who will be glad to answer any questions you might have and help you get the loan that best works for you. Then you can begin working with your American Realty Realtor to find the home of your dreams.
Call us at Call us today at (563) 556-4577 if you’re looking to buy a home in the Dubuque area or contact agents at our Dyersville (563-875-9455) or Cascade (563-852-7653) office if you’re looking in those communities.