Navigating the world of lending can be challenging, but don’t be intimidated. To help you get started, here are eight questions that you should ask your lender:
1. What type of loan is best for me? Finding the perfect loan for you may take a bit of work, so you’ll want to let your lender know a little bit about your current financial situation and future goals.
2. What will my interest rate be? Keep in mind that the rate you get will depend on a variety of factors including your credit situation and the type of loan you get.
3. What is the annual percentage rate? The annual percentage rate (APR) is different from the interest rate in that APR includes all of the embedded fees and costs of your new loan.
4. Should I lock in my rate? A lender will let you lock in your interest rate ahead of time, but you’ll need to calculate whether or not the fees associated with locking in will cost you more in the long run.
5. Will I need a down payment? To avoid having to pay mortgage insurance, you’ll generally need to make a down payment. However, some types of loans require only a small down payment.
6. What are the costs associated with the loan? Although some costs are standard, lender-specific fees can vary widely. Make sure you ask what the total cost of your new mortgage will be.
7. How long will the process take? How long it takes can vary, but it’s a good idea to get a general timeframe so that you can work out a schedule for your home purchase.
8. What information will you need from me? All lenders require the same documentation—such as tax returns, bank statements, etc.—but some may ask you for different information.
As you go along, you’ll probably have more questions. Fortunately, your mortgage professional will be with you every step of the way.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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