To continue with the post I made a few days ago, I wanted to give you a few more questions you should ask your mortgage lender to ensure you’re not being taken for a ride.
What’s my minimum required down payment?
This one’s kind of important since it will tell you exactly how much money you’ll need to put down in order to get into your dream home.Â Different lenders have different requirements, as do different lending programs, so the only way to find out is to ask.
Will there be prepayment penalties?
This is another big one since many people plan on paying off their mortgage early.Â It’s much better to find out right now if you’re going to have to worry about paying prepayment penalties for getting it paid off early, than to breathe that big sigh of relief as you write what you think is the last check, only to find out you’re going to get hit with massive penalties.
How long will it take to close the loan?
The average closing is typically between 30-45 days from the time the final offer is accepted, but it is possible to close much faster.Â It really comes down to all pertinent parties involved, the buyer, the seller, and the lender.Â If you need to close in 10 days, even though it’ll be a mad dash to the finish, it’s certainly a possibility so be sure to ask your lender how quickly you can take care of things.
Is there anything that might delay my loan?
This is a question that will help you avoid a lot of stress, head aches, and heart ache during the loan origination process.Â Asking your lender what they need upfront, and then following up to find out if there’s anything that might delay the load is simply a good idea so you can avoid any unnecessary delays in getting to the closing table.
What documentation will you need?
This is another one that will simply save you time, headeaches, and hassles as the lender works through their process.Â Also, it’s extremely important (and relevant) for you to stay in touch with your realtor during this time in case something comes up that they need you to provide.Â Although you should have a good indictation as to what documents might be missing.
Overall, the process of buying or selling a home can be quite stressful.Â But being an informed consumer can really help you feel more confident about the process AND make sue you’re banking a good future.