Things To Know Before Approaching A Mortgage Lender

Introduction

● If you’re searching for a home online, then you’re on the right track. ● It’s fun to look for homes online and go to those open houses than to research about the home loans. ● While hunting for a house, you’ll find many wonderful homes. ● However, it’s the high price of the house that stops you from buying.

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● When it comes to home loans, many people do not know where to start from. ● Some home buyers don’t look for a mortgage lender. ● Look for mortgage lenders and stick to the one who can understand your requirements well. ● Before selecting a mortgage lender, you should ask some important questions to know more about vital information.

Let’s look at some questions you should ask.

1. Ask a lender about the process for pre-approval and closing ● Ensure the timelines of the lender that is aligned with your home purchasing goals. ● Know when they will consider your credit score. ● During that time, don’t open or close any accounts or use your credit for any purchase. ● It’s better that you should read your own credit score first to review for any issues so that it doesn’t negatively impact your credit score.

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● Know the expiry of the pre-approval. ● Know the lender’s closing process and where it is going to take place. ● Will they work at a particular law office or will it take place in their home? ● Some lenders can close mortgage loans online or in your home.

2. Ask how the communication will take place with homebuyers ● Know everything about the mortgage loan. ● Know how they will handle your loan process and all the required steps. ● Ask whether you’ll get an account representative who will inform you about all the updates? ● Ask whether you’ll get an online system for notifications? ● Know how you would communicate and what works for your schedule.

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3. Ask what will be your down payment requirement ● Your minimum down payment will depend upon the type of loan. Ask the lender about how much you can put down and your goals for a monthly payment. ● If you’re a member of the military, you can select VA loans, which offer zero percent down. ● Ask the lender whether they can help you participate in any down payment assistance programs. There are several homeownership programs available that can help you save on your down payment and closing costs.

State and local housing agencies administer a variety of programs. They approve lenders who can issue loans with those programs.

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● You should find out the low down payment programs and accompanying down payment assistance programs that lenders can offer. Look for programs available in your market and talk to your lender and realtor. ● Don’t forget to ask about the Interest Rate and Annual Percentage Rate. The annual percentage rate (APR) is created by a complex calculation that covers the interest rate and lender fees divided by the loan’s term.

Ensure that lenders compute APR correctly. Ask about interest rate adjustment frequency, the maximum annual adjustment, the highest rate, index, and margin.

4. Ask about the discount points and origination fees ● Some lenders charge origination fees along with the points. ● The more points you pay, lower the interest rate. ● Points are also tax deductible. ● The important question you should ask - is there anything that could delay your closing?

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● Purchasing a home is a complex process that involves many stages and requirements. ● The delays are common; the best ways to get rid of them is by talking to your lender and by providing the updated documents as quickly as possible. ● Along with your pre-qualification, submit additional information for review and approval.

5. Ask how you can qualify for a loan ● A lender looks at many factors to qualify you for a mortgage. ● Your credit score, financial history, current earnings, and savings matters. ● Mortgage lenders look at how much debt you have compared to how much you earn. ● Ask as many questions as possible or clarify all your doubts before you take the loan.

Read more : https://www.drewmortgage.com/questions-to-ask-before-selecting-mortgage-lender/

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� If you’re looking for a mortgage lender in MA, Drew Mortgage Associates, Inc. can help. Drew Mortgage Associates, Inc. is a mortgage company in MA that can provide mortgage loans at a lower interest rate.

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DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/

Peabody Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 Phone: (978) 750-1080

Boston Mortgage Lenders 232 Commercial St Boston, MA 02109 Phone: (617) 523-3060

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