Tuesday, January 14, 2025 / by Ameil Gill
QUESTIONS TO ASK YOUR MORTGAGE LENDER
QUESTIONS TO ASK YOUR MORTGAGE LENDER
Buying a home is a big deal, and having the right team on your side makes all the difference. Your lender is a key player in the process, and choosing the right one is just as important as picking the right agent.
Here are three important questions to ask any lender before choosing who will assist you in financing what is likely one of the largest purchases of your life:
1.What are all the costs involved with my loan?
Besides the interest rate, make sure to ask about all potential costs, including closing costs, origination fees, and any other “hidden” fees. This will help you avoid surprises down the line.
Make sure you go over the estimate In detail, and if you don’t understand something, ask questions!
2. What is the annual percentage rate (APR)?
The APR reflects the true cost of your mortgage, factoring in both interest and fees. It’s essential to compare APRs from various lenders before selecting a loan to ensure you’re getting the best rate & fees.
3. When can i lock in my interest rate?
Locking in your interest rate can shield you from potential rate increases. Make sure to ask how long the rate lock is valid and whether there are any fees involved with locking it in now.
Don’t be afraid to shop around! Compare rates and fees, and look for a lender who is transparent, communicative, and willing to guide you every step of the way. Asking the right questions can help you find a lender that fits your financial needs and keeps your home-buying journey stress-free.
If you’re thinking about buying a home, getting pre-approved is the first step. I work with a few trusted lenders and would be happy to connect you—just reach out!