Before you purchase a new home, it’s imperative you speak with your lender about a few key pieces of information. You should make sure to ask questions that pertain to your mortgage, the future of your home, and your finances. At The Deibler Group, our knowledgeable lending team is available to answer your questions anytime to help make the lending process simpler and more enjoyable. The buying process is one that can be quite stressful at times, and it’s the Deibler Group’s mission to make it as seamless as possible when you apply for home loans in Frederick MD. Keep reading to see the most important questions you need to understand when purchasing a home.
What will my mortgage payment be?
Most lenders max qualify you for a home loan, and don’t ask you what your specific budget is, and what you can afford in your unique situation. They only see what you can qualify for, but don’t take into account another very important factor: YOU. Make sure they understand what you want the payment to be so that they can find a mortgage payment that fits into your budget. Bring this question up early so that they can keep your needs in mind throughout the home loan process.
What is the Interest Rate?
You should never sign a mortgage document without asking this question first, and without finding out why your rate is where it is. You must know what the rate is, how long it’s locked in while you go through the closing process, and if it will change or stay the same. There are two different rates available, and it’s imperative you know which one you’re signing up for. The adjustable rate mortgage can change every few years. A fixed rate mortgage allows you to pay the same interest rate for the life of your loan. Knowing the difference is what makes your home affordable.
How Much Do I Need to Put Down?
Money down is a big question, and it’s a loaded question. It’s not the same for everyone, but you should ask about this. There are many loan types available for a variety of borrowers, and it’s imperative you know which one you’re working with. It’s confusing for many buyers to understand the differences between loan types, what’s required for a down payment, and why you make a down payment. You need to know what’s required for you to finance your mortgage, but the general rule recommends putting down at least 20% of the cost of the home to avoid paying private mortgage Insurance.
What Documents Do I Need?
This is one of the most important questions to ask about your loan. You must know what documents are required of you throughout the lending process and on closing day when you take advantage of home loans in Frederick MD. Ask this question right away because some documents are more difficult to obtain than others. For example, if you need a copy of any prior year income tax returns for income verification purposes, you must know right away. It can take up to a few weeks to receive these from the Internal Revenue Service.
Knowing what you need, what you’re getting, and what you have before it’s too late is what makes the mortgage lending process work so seamlessly. A good lender knows the process, knows what’s expected, and they anticipate and answer your questions long before you have the forethought to ask these questions. If you’re looking for a knowledgeable loan lender, contact the Deibler Group today.