Homebuying September 14 2018

8 Questions to Ask Your Lender

It is your mortgage lender’s job to help you get a loan that is best for you. It can be intimidating and confusing treading new territory when buying a home. Familiarizing yourself with the terminology used in real estate and finding a lender who will walk you through the process makes all the difference in the world. Discussing the following questions with your lender will help you go forth with confidence so everybody can be on the same page and you can make the decision that’s best for you.

1. How long will I have to repay the loan (what is my loan term)?

The loan term is how long you will have to repay the loan. This will affect your monthly principal and interest payment, your interest rate, and how much interest you will pay over the life of the loan. In general, the longer your loan term, the more interest you will pay, and vice versa. Loans with shorter terms usually have lower interest costs but higher monthly payments than loans with longer terms.

2. What is the interest rate?

Be sure to ask your lender for a direct interest rate quote, as well as the corresponding annual percentage rate (APR) for the loan.

3. Is the interest rate fixed or adjustable?

Interest rates come in two basic types: fixed and adjustable. Your choice will affect whether your interest rate can change; the amount of monthly principal and interest payment and whether it can change; and how much interest you will pay over the life of the loan. With a fixed-rate loan, your interest rate and monthly principal and interest payment will stay the same, but your total monthly payment can still change. Adjustable-rate mortgages (ARMs) are often less predictable but may be cheaper in the short term. The interest rates can change based on the market so your payments can go up and down.

4. What type of loan am I getting?

Mortgage loans are categorized based on the size of the loan and whether they are part of a government program. This affects how much you will need for a down payment, the total cost of your loan (including interest and mortgage insurance), how much you can borrow, and the house price range you can consider. Each loan type is designed to fit different situations. These include conventional loans, FHA loans, and special program loans.  

what does a loan officer do?

 

5. How much money do I need to put down for a down payment?

Generally, the larger the down payment you are able to make, the lower the interest rate you will receive and the more likely you are to be approved. If you cannot make a down payment of 20 percent, lenders usually will require you to purchase private mortgage insurance or obtain an FHA, VA, or USDA loan.

6. When can I lock in the interest rate?

Mortgage interest rates can change daily, sometimes hourly. If your interest rate is locked, your rate won’t change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer. If your rate is not locked, it can change at any time. Ask your lender when you can lock down a certain rate and for how long. Keep in mind lenders will usually offer lower interest rates for shorter-term locks and higher interest rates for longer-term locks.        

7. What are the total estimated closing costs, all in all?

Closing costs include loan origination fees, appraisal fees, and attorney fees (if any), home inspection fees, and a slew of others. Your lender should provide you with a loan estimate form itemizing the approximate costs of your loan so you can budget accordingly.

8. When will the closing be?

There are a lot of factors that determine when your exact closing date will be. Many of these will be entirely out of your control. Ask your lender for an estimate of when you might expect to close. This way you’ll have a good idea of how much time you’re working with.  

To get these questions answered and more

speak to an eagle loan officer today!

  Sources: https://www.consumerfinance.gov https://www.khanacademy.org  

Search Results for query

November 12 2018

What to Keep From Your Closing

After several stressful months of buying or selling your home, it may be tempting to put the transaction in the past and dispose of the evidence—which is often more than 100 pages. However, there are several important legal and financial documents...

Read More

November 05 2018

What is an Appraised Value?

Everyone wants to sell their house for more than they bought it for, but real estate is trickier than that. Markets change, and home values change right along with them. Fortunately, there are licensed professionals called appraisers who will come to your home,...

Read More

November 02 2018

Pros and Cons of Buying a Condo

Whether you are a first-time homebuyer or searching for home number ten, buying a condo instead of a house may be the perfect choice. Most condos are essentially a hybrid between an apartment and a single-family home. They are great for certain lifestyles but...

Read More

October 29 2018

What a Home Inspection Should Cover

Before making what may be the largest investment of your life, you’ll want to get a home inspection. Home inspectors are trained to examine the physical structures and systems of a house. If you’re going to spend hundreds of thousands of your...

Read More

October 26 2018

3 Reasons to Invest in Real Estate

Increasingly, Americans are choosing to invest in real estate instead of stocks, bonds, or mutual funds. From 2000 to 2016, real estate outperformed the stock market at a ratio of about 2-to-1. For three years in a row, Bankrate found more U.S. adults feel...

Read More

October 22 2018

What Does a Realtor Do?

Ever wonder about the difference between a real estate agent and a realtor? They’re the same, right? Not so. Working with a real estate agent can take a lot of time and stress out of the home buying process, but not all real estate agents are the same....

Read More

October 19 2018

Your Final Walk-Through Checklist

By the time you get to the final walk-through step of buying a home, you may be a dangerous combination of excited and exhausted. You’ve negotiated the perfect price, had the home inspected and requested repairs. You’re ready to move in! But a lot...

Read More

October 17 2018

7 Tips to Buying in a Hot Housing Market

Buying a home can be overwhelming under any circumstances, but especially in a hot housing market. Home prices go up, and the number of homes available goes down. With emotions and stress running high, you may be pressured into making a purchase you’ll...

Read More

October 15 2018

Finding the Perfect Neighborhood

Amid the excitement of hunting for the perfect house for you and your family, don’t forget to pay attention to your surroundings. It doesn’t matter how perfect your chosen house is — disliking the neighborhood can make your living situation...

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?