The Best Questions To Ask A Loan Officer When Buying A House
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Loading... - Louie Powell
- 24 Feb 2023
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Are you wondering what you should ask the lender you’re planning on using?
When buying a home, choosing your mortgage lender is an important decision. But before you decide which loan is right for you, there are some questions to ask a mortgage lender. These questions will ensure you make the best decision that could significantly affect your finances.
When you meet with a loan officer, ask these questions to make the best decisions.
What types of home loans are available?
You need to find out if the lender offers the type of loan that suits your situation. While they will provide fixed-rate and adjustable-rate mortgages (ARMs), how long is the fixed-rate period on the ARMs?
If this period isn’t that long, you will pay more interest as the lower introductory rate ends sooner.
Are they offered if you want a loan backed by the government, like FHA or VA? Understanding what the best mortgage loan is for you should be a primary concern.
Which mortgage is right for me?
Your lender should recommend the right mortgage based on the information you provide. They should give this in writing so you can see the benefits and the drawbacks, making it easier to compare to other loans.
Ask them to explain alternatives and any costs you aren’t entirely sure about. You should feel comfortable with questions to ask a loan officer and the answers they give; if not, they might not be the lender for you.
How much will the interest and annual percentage rate be on the loan?
Two interest rates will be provided by the lender, one of these is the base interest rate, and the other is the annual percentage rate (APR). The APR includes the base interest rate along with the closing costs.
The difference between these rates indicates how high the costs are on the loan. Read More…
