Applying for a Mortgage? Ask These 3 Questions, Applying for a Mortgage? Ask These 3 Questions

Applying for a Mortgage? Ask These 3 Questions

Rhonda Duffy

Have you finally found your dream home? Many homeowners are excited to move into a luxurious home that will be a place where they can create long-lasting memories with their family and friends. You deserve to live in a home that you love, which means that you need the right mortgage that will match your needs.

If you are applying for a mortgage loan, there are a few questions that you should ask before you sign on the dotted line:

Can I lock in the interest rate?

Locking in the interest rate while you are finalizing the loan paperwork is a good idea because small daily changes in the interest rate can have an impact on your monthly payment. When you are asking lenders for quotes, find out if they can lock in their quoted interest rate. Typically, there is a certain period that the interest rate can be locked in, so you need to make sure that you close on the property within the window of time to get the interest rate that you’ve locked.

Locking in the rate makes it easier for you to plan your budget for the home. This proposal with a locked interest rate gives you a clear picture of the amount that you will need to pay on a monthly basis.

How much does my down payment impact the fees or interest rate on the loan?

If you don’t have enough money to put down 20% on the property, then you will likely have additional costs that are incurred. Most lenders require a home buyer to purchase private mortgage insurance if they do not have an adequate down payment.

Find out the lender’s requirements so that you can avoid a higher interest rate, additional fees, or the cost of private mortgage insurance. These things can impact the terms of the loan, which has a domino effect on the amount of money that you will be paying for the loan.

Am I pre-qualified or pre-approved for the loan?

It is important to understand that there is a difference between pre-qualification and pre-approval. When you start looking for a home, you might be pre-qualified. But, you need to ensure that the pre-approval process is complete as you are nearing the time when you are ready to make a home purchase.

This process will give you more information about the amount of money that you will be able to get for the home. These details make a difference to help you choose a property that is within your price range.

Do you have any other questions about mortgages or buying a home? Talk with the leading real estate team in Atlanta: Duffy Realty of Atlanta. We want to be sure that you have access to an experienced team so that you can easily find the home of your dreams. Contact us anytime for more information about our real estate services: (678) 318-1700

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