Basic Questions You Should Ask Your Mortgage Broker To Clarify The Terms
Before signing on the dotted line of any loan agreement
, there are some basic questions you should ask your mortgage broker to clarify the terms. These questions will help you get a clear idea of what really amounts to the loan and the exact amount of your loan will cost. It also lets you be prepared with all necessary paperwork for the loan can be processed without delay. These are the basic questions you should ask your agent to better understand their loan.
Costs and expenses...
Ask your mortgage broker exact cost implications of any process or closing fees, the existence and extent of prepayment penalties, fees and exchange rate any other charges that apply to your loan. These charges can significantly increase their costs. I would not be surprised by this after you sign for the loan.
Blocking rate options...
Check whether the lender offers a rate lock in your loan. With a lock, you can opt for fixed interest rates, if market trends indicate interest rates tend to rise. Or you may want to opt for variable rates if you feel that future interest rates will drop lower than their current fixed rate loan charges you.
Annual Percentage Rate...
The annual percentage rate or APR helps you compare loans from various lenders with precision. Ask your lender what the APR is for the particular loan and see how it compares to the APR of similar offerings from competitors. The APR includes all lender fees and give a more accurate picture of what each loan will cost effectively.
Guaranteed GFE...
You may be required to pay the fees at closing or the repayment of a loan. These conditions will come out of a good faith estimate (GFE) by the lender. Before closing the loan agreement, ask for the GFE and ensure that the lender keeps your GFE. After all, a GFE that is not supported by the lender is practically worthless.
Loan processing time...
Once you've identified the loan you want and all the paperwork is in place, you will want to know how long would it take for funds to reach you? The idea is to go to lenders that can make funds available immediately once the paperwork is done. This will seal your loan agreement and will protect you from any unexpected sudden change in the economy.
Here are some basic questions you should ask your mortgage broker before the end of the loan. The answers to these questions will give you a good idea of exactly how the loan will cost and how you need to plan your future expenses to fulfill the obligations of the loan in time. These consultations will also reveal the cost advantages that you can choose to serve certain types of loans or certain features within a loan. Discuss this with your agent to get the most cost effective loan available in the market.
Faced with problems of exclusion, many of us have resorted to the conventional method of refinancing your home for salvation to save our auction houses as possible! If you're one of those who have gone the mortgage payments and facing possible foreclosure proceedings, to know how much you can save by refinancing your home will definitely help your cause! When you refinance, you can replace your existing mortgage for one that is more favorable in terms of interest rates and deadlines, allowing you to better meet the payments every month without any struggle.
by: Michael SeoVida Francis
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