What You Should Think About Before Applying For A Mortgage
If you are considering refinancing your current home mortgage, it is important to understand the mechanics of your mortgage loan. Before you sit down to speak with your loan officer, you should consider preparing a list of questions you feel may need to be answered.
Yourloan officer will be available to assist through the entire mortgage process but it is important to know some things ahead of time. Here are some questions that you may need to get answers to before completing your application:
What Type Of Loan Would Be Best For Me?
Your loan officer can discuss the various loan programs available to help you refinance. Some borrowers will benefit greatly from adjustable rate mortgages while others will prefer a fixed rate. Discuss various loan terms such as 30-year or 20-year mortgage loans.
What Documents Are Required?
Be prepared to provide yourloan officer with several documents. The most common documents include pay stubs, bank statements and tax returns. Loan officers will also need a complete list of debts including auto payments, credit card payments and student loans. Make sure to get everything to your loan officer in a timely manner. This will help things go smoothly.
What Costs Are Involved?
Prior to a loan closing you will be required to pay some costs up front. These may include but are not limited to an appraisal fees, credit report fees and application fees.
Discuss all these costs with the loan officer to determine how much money will be required prior to the loan being approved. In addition, discuss any funds that will be required to complete the loan closing.
Can I Select My Own Appraiser?
When you apply for a refinance loan, lenders will require a property appraisal. Lenders typically maintain a list of approved appraisers and supply those lists to the loan officers. Typically, the loan officer will assign an appraiser to review the property. Borrowers generally have no input regarding the choice of appraisers.
When Will I Get A Good Faith Estimate?
Good Faith Estimates must be issued after you have completed your loan application. A second GFE is typically presented along with the HUD1 prior to closing. Keep in mind, the GFE is only an estimate of costs and that actual costs may be slightly higher or lower.
Never hesitate to ask your loan officer any questions you may have. The more questions you have addressed during the application process, the less likely you will be to be confused at the time of your mortgage closing.
Always remember, your loan officer is there to answer your questions and guide you through the entire loan process. If you have questions about getting the process started for a new home loan or refinancing your current loan please call Mark Taylor at 602.361.0707 or email mark@awesomerates.com
Thanks for taking the time to read comment and re-post today's blog on:
Comments(3)