10 Questions To Getting The Best Mortgage: To get the best mortgage, asking basic rate and fee questions isn't enough. Just as important, is making sure your mortgage consultant asks you questions to determine your goals and objectives so they can help you make informed decisions and get the best mortgage for your situation. To do this, you want to work with someone that you trust. So, with getting the best mortgage in mind, here are 10 questions to ask:
1) What are the rate and total fees?
Of course you'll ask these questions to get the best mortgage, but, keep in mind that rate quotes need to be done on the same day, as close to the same time as possible. This is because financial markets change constantly and the best mortgage rates may change several times a day. When comparing fees, you should expect a quote detailing any loan-related fees, such as: underwriting fees, processing, appraisal, credit report, title insurance, escrow fees, etc. Note that for a purchase transaction, escrow and title companies may not be known until the property is identified, so estimates for these items will have to be used in a pre-purchase consultation.
2) What are the expected turn times for loan approval and close?
Is my scheduled close of escrow realistic? Specifically for a purchase, you and your Realtor need to know projected milestones for contingency removals and close of escrow! Turn times vary by lender. Some lenders manage this better than others, but during heavy volume, turn times can increase dramatically. These questions help you know what to expect and avoid stress during escrow.
3) What is the lock period and when can I lock?
While the best mortgage rates assume shorter lock periods, there is a tradeoff. That 15-day lock is doable if your loan is already approved and you're ready to draw loan documents and sign. However, if you're just starting the process, a 15-day lock isn't enough time and a 30- or 45-day lock may be necessary, which incur added costs. Also, lenders' lock policies vary. Some require formal underwriting approval before locking, while others allow a borrower to "pre-lock" before submission.
4) If the lock period expires, what happens?
Delays do happen occasionally and for various reasons. One of my clients who purchased a home in San Diego, had to extend the loan when a pipe burst and the property flood during escrow. Completing the necessary repairs delayed close of escrow six weeks, and the seller paid for the extension. If a lock extension becomes necessary, asking such questions will help you understand the logistics and who would pay for it.
5) If looking for an adjustable rate mortgage (ARM), what is the index and margin? And, what is the best mortgage index?
Your mortgage consultant should help you determine the best mortgage for you and explain the pros and cons of an ARM loan versus a fixed rate loan. And, keep in mind, everyone’s situation is different. So, the best mortgage for one borrower isn’t necessarily the best mortgage for you.
...
Conclusion: You can see where I'm going with this, when it comes to getting the best mortgage, asking questions is important! Beyond just rates and fees, these questions will help you find the best mortgage and work with someone you can trust! One other piece of advice, avoid the temptation to simply email these questions to various mortgage professionals! Just like you would interview your Realtor or Financial Advisor, getting the best mortgage requires you to interview your mortgage professional! It may take a bit of extra work, but these questions should help you get the best mortgage for your situation!
Continue to 10 Questions To Getting The Best Mortgage - Part 2
Questions? To contact me, click here to visit Troy Village's activerain website or here to email me.
Comments(0)