Important Mortgage Loan Questions to Ask

There are a lot of questions to ask and answer as you search for a new home. While the act of finding a property can be downright exciting, the same cannot always be said for securing a mortgage.

From local lenders to those that do business all over the country, you will be faced with many options along the way. How you make a final decision is up to you, however, there are steps you can take to improve your chance of success.

Here are three mortgage loan questions to ask, regardless of which lender you are speaking with:

1. What is the best interest rate you can offer? Like most, this is the first question you are going to ask. There may be many details to consider when comparing mortgage lenders, but it is common to make a decision based on the rate you are offered.

If everything else is equal, the lender offering the lower rate will win out. The lower the rate the more money you will save over the course of the loan.

2. Could you estimate the closing costs associated with my loan? This is a big part of taking out a mortgage to buy a home.

You may be thinking about nothing more than the loan itself, along with your down payment. As important as this is, don’t overlook the closing costs. This is money you will need to bring with you to the closing table.

3. What will my monthly mortgage payment be? Once you tell the bank how much you want to borrow, and they provide you with an interest rate, you should be able to get a clear idea of how much your monthly payment will run you.

Note: don’t forget about property taxes, home insurance, and private mortgage insurance (if you don’t intend to put down at least 20 percent).

Any question you have is one that is worth asking. Once you collect answers and begin to compare your options, it will not be long before you are making a final decision as to which mortgage lender is best for you.