• Tel: (267) 521-1502
    Email: info@everesthomemortgage.com

  • interest rates

    With the nation’s economy improving, the housing sector is one of the areas influenced by such growth. A decision to buy a home is probably one of the most important decisions that you will ever make in life. Therefore before taking a mortgage, you need to have all the necessary information that will help you take the best cause of action. We have compiled the key questions that you need to ask during mortgage application so that you can go down this path with confidence.

    What Are The Qualifying Guidelines For The Loan I Am Applying For?

    The qualification guidelines relate to your assets, liabilities, income, employment and credit history. Qualification requirements for veteran affairs loans, first-time home buyer programs, and other government-sponsored mortgage programs have easier qualifying guidelines.

    What Documents Do I Need To Provide?

    A typical lender will require a proof of assets and income including bank statements and tax returns before a loan is approved. Other subsidiary documents may be required depending with the lender. In case you have a high credit score, you may qualify for a non-documentation mortgage although you should expect a very high down payment and very steep interest rate to cover the risk.

    What Is The Interest Rate On The Mortgage?

    This sounds obvious, but it's always important to understand the interest rate and how the fluctuate with time. The interest rates are influenced by several factors within the economy hence may not be fully controlled by the lenders. However, a lender should seek a direct interest rate quote and the corresponding annual percentage rate (APR) for the mortgage. Don’t be afraid to shop around until you get APR that you are comfortable with since it also accounts for fees and other mortgage-related charges.

    What Is The Minimum Down Payment Required For This Mortgage?

    Your down payment figure will determine the terms and rate of your loan. In many situations, the down payment ranges from 5 to 20 percent of the purchase price. If you can make a high down payment, there is a possibility that your rates will be lower, and your terms will be better.

    How Many Discounts And Origination Points Will I Pay?

    Lenders typically charge prepaid mortgage interest points that can lower your interest rate or have no advantage to you at all. Make sure you find out how many discount and origination points you are required to pay and their components in detail. Furthermore, many lenders offer a hand-written good faith estimate of you closing cost- within three days of receiving a mortgage application. It is advisable to avoid brokers and lenders who do not provide a good faith estimate.

    What Are The Closing Costs?

    To stay ahead of the game, a borrower should know with certainty all the fees relating to the mortgage. Mortgage fees arise due to various services provided by the lender and also other parties involved in the mortgage application and processing. Get these facts as soon as possible.

    Is There A Prepayment Penalty On This Loan?

    Ask about redemption penalties and note in case these extend beyond the discounted period. If there are no penalties, you can be able to shift your mortgage and take advantage of any arising incentives.

    Can I Lock The Interest Rate And What Will It Cost Me To Do So?

    You should be aware of the fact that your interest rate will fluctuate with the mortgage agreement period. It is always prudent to lock in the rate to avoid the interest rate going up. Ask about lock-in fees and keep watching the current interest rate.

    Is The Mortgage Portable To Another Property If I Decide To Move?

    You need to find out what will happen in case you move to another property. This is specifically crucial if the redemption penalties last long time or the when you are taking a long-term fixed or discounted mortgages. In the current market, many lenders are allowing borrowers to transfer mortgages to other properties with the same terms and conditions.

    Are There Any Other Conditions Attached To The Mortgage?

    Will you have to buy insurance? Imposition of compulsory insurance can scare away borrowers from very attractive rates. Instead of having side payments, let the lenders quote an all inclusive quote and choose the one that is favorable.

    How Long Will It Take To Process My Mortgage Application?

    Many factors will influence the processing loan application form, but the nature of the lenders organization structure has more impact on how long it will take. Ask your lender to give a guesstimate.

    What Might Delay Approval Of My Mortgage?

    Any change relating to your assets, liabilities, income or credit history may delay your mortgage approval. You should put your financial life in a consistent pattern to avoid these delays.

    Is There An Arrangement Fee To Pay And If So Will I Get This Back If My Application Does Not Proceed?

    Ask whether any fees payable up front is refundable in case the application does not go through. Understanding the situation at the outset will save your fee from lenders who retain it even if they decline your application.