Important Questions to Ask a Lender

Your lender may seem like this intimidating, tough figure. Actually, you should be the one in control because it is your money that is being spent. It is because of this that you must know what is going on with your mortgage at all times. There are many questions that you need to ask from the beginning all the way to home mortgage refinance. The following are some of those questions. You always need to get the straight answers.

What is the Interest Rate?

This might be the most important thing that you can end up asking your mortgage lender. The interest rate is what can make or break your mortgage payments. This is also the way that you will know exactly what you should be paying during your loan. You must fight to get the lowest interest rate possible. This is when it would really help to know your credit score because that can also help you get a good rate. If you have a high credit score then make sure that they know about it. You should also compare rates between companies and see who will help you out the most.

How Will You Process My Application?

You want to get this process over and done with quickly. They should not be messing around during this process because it is too important. Find out how long they will take to process your application, because you want to know how long you will be waiting around. There can be times when the process can get held up a little bit if they have a lot of business they have to get through. A lender will tell you that it should take 2 weeks to get your mortgage processed. Some people have had to wait 60 days. That is entirely too long and you should not settle for that.

What are the Total Costs?

Know what they expect out of your down payment. You always want to make sure that they are impressed because that will help you get a better deal. Figure out what they want for the down payment, and then match it or go a little larger. If you pay too little then they might see you as a risk. Finally, you must also know about closing costs and how they fit in. You lender is required to give you a written estimate of how much your closing costs will be within three days of your loan application. You need to know this number because then you can manage your finances in a much more successful way.