You’ve decided to purchase a home or refinance your existing home? How do you go about choosing your mortgage broker or lender? Do you use your bank or credit union or do you shop around for rates and closing costs? My suggestion is to talk to several.
You wouldn’t expect a doctor to suggest surgery before assessing your medical situation, so choose a broker who gathers enough information from you before recommending a particular type of loan. Keep in mind that the more your broker knows about you, the better advice they can give you. Don’t hesitate to share your personal information. Once your lender recommends a loan type, here are a list of questions you may want to ask your mortgage broker or lender.
- What is the annual percentage rate (APR)?
- Is this a fixed or variable interest rate?
- Is there a penalty for early pay-off?
- How much is the down payment?
- Are discount points available that would help me lower my interest rate?
- What are the loan origination fees?
- What are the total estimated fees? This should include the appraisal, credit reports, title policy, and escrow funds.
- When will you lock in your interest rate and is there a charge to lock in?
- Are your underwriters in-house that review the loan? Otherwise, it may take longer to get your loan processed.
- How confident are you that we will be able to close on time?
If you are thinking about buying or selling a home, give one of our agents at Right Size Realty a call.
Dianne Nelson, Broker (601) 421-7094
Andrew Tyre, REALTOR (601) 842-4270
Rodney McCoy, REALTOR (601) 383-1019
Jamie McCoy, REALTOR (601) 259-0461
April Fedric, REALTOR (601) 955 5332
References:
Weintraub, E. (March 30, 2020). 10 Questions to Ask Your Mortgage Broker or Lender. Retrieved from: https://www.thebalance.com/questions-to-ask-your-mortgage-broker-or-lender-1798464