Too many people who are looking to buy a home spend all their time researching homes and almost no time at all researching mortgage lenders. This can be a huge mistake that could cost you thousands if not tens of thousands throughout the course of your loan. As your mortgage lender the following questions to make sure you’re getting the best loan for you.
- What is the interest rate? This is a question that almost everyone knows to ask a mortgage lender, it’s a key determining factor.
- What is the point situation? How many points will you have to pay, how much are they and what kind are they? This information will also affect the size of your loan.
- What are the closing costs? The closing costs can add thousands onto your loan from the get go.
- Are there prepayment penalties? Prepayment penalties hit in a number of situations, if you refinance, pay off a loan early, or sell a home and you want to avoid them if possible.
- What is the down payment? Some loans require a minimum down payment, and the percentage required can vary drastically. For people without much savings this is critical.
By asking these questions you’ll have a better feel for your loan and be able to get the best loan terms possible.