Top 7 Questions to Ask Your Lender
1. How do I qualify for a loan?
Your credit score and financial history matter, as well as how much you currently make and how much you have stashed away. They’ll also look at how much debt you have compared to how much income you have, known as your debt-to-income ratio.
2. What are the mortgage fees?
When you are ready to close, you will be expected to pay a few one-time fees.
3. What is my interest rate?
Part of your monthly payment will be interest. How much interest you pay is determined by the interest rate, and your interest rate is determined by a number of factors, including your credit score.
4. Is the mortgage fixed or adjustable?
One of the questions to ask your mortgage lender is if a mortgage has a fixed rate or if it’s an adjustable-rate mortgage (ARM). The interest rate on a fixed-rate mortgage remains the same for the duration of the loan, while an ARM is typically fixed for a shorter period and then fluctuates at regular intervals.
5. What will my down payment be?
The more you put down on a house, the better. But saving up for a big down payment can be tough. The down payment amount will vary, depending on the type of loan you qualify for.
6. Will I have to pay private mortgage insurance?
If you put down less than 20 percent, you’ll likely be required to pay private mortgage insurance, or PMI.
7. What will my monthly mortgage payment be?
The number you’ll be living with on a monthly basis is, of course, your mortgage payment. When you find out how much the mortgage payment is, be sure you can afford to pay it and the other costs of homeownership, like maintenance and repairs.