Before you even start looking for a home the best thing to do is get pre-qualified for a mortgage (click here to get started). Pre-qualification will give you an accurate assessment of how much home you can afford and key numbers that will factor into your family’s budget. And when you working with your mortgage professional, here are some “must ask” questions.
Questions to Ask Your Mortgage Broker / Loan Officer
- Which loan type is the best and what are the pros and cons for each?
- What is the APR of the loan and any applicable lender fees? If the loan will be adjustable ask about the adjustment frequency, maximum annual adjustment, the Cap, Index, and margin.
- Lenders are required by law to give you a GFE (good faith esitmate) within 3 days after applying for the loan, be sure to ask that all of these fees are included in the GFE: appraisal, credit report, lender’s title policy, pest inspection reports, escrow, recording fees, and taxes.
- Are there any pre-payment penalties?
- How long will it take the loan to process (i.e. time to fund)? This could take anywhere between three and six weeks.
Mortgage Pre-Qualification Keys
- Price range of homes you are interested in purchasing
- What your approximately monthly house payment will be
- How much down payment, if any, will your need or want to put down
- What are your approximate closing costs
- What kind of loan program is best for you based on your wants, needs, and desires