Buying a home is an exciting time. It can also be a daunting time, especially if you need to finance your purchase. To keep your experience as positive as possible, make sure to talk with your mortgage lender right away.
Here are five questions you’ll want to ask your mortgage lender.
- Can I buy a home? Number one question – will I qualify for a mortgage loan to buy a home? When you talk with a mortgage lender, they will get a snapshot view of your financial situation so they can prequalify you for a mortgage. This will tell you if you can finance a home and how much home you can actually afford to buy.
- How much of a down payment will I need? This is always a concern for homebuyers. And oftentimes it holds people back from buying a home because they just don’t know. Again, it’s a great question to ask a mortgage lender because he or she will let you know what types of mortgages are available to you with different down payment options.
- What mortgage types do you offer? This is you next logical question to ask a mortgage lender because the type of mortgage you get will depend on your budget and lifestyle. The good news is a mortgage lender will help you decide which mortgage loan is best for you such as first-time homebuyer mortgages, low-income mortgages, conventional mortgages and construction loans where self-contracting is allowed. Typical mortgages include Federal Housing Authority (FHA) mortgages, Fixed-Rate Mortgages (FRMs), and Adjustable-Rate Mortgages (ARMs) to name a few. It’s important to explore all of your options.
- What is the interest rate? Your mortgage loan officer will determine your interest rate based on the mortgage type for which you qualify and your credit. Again you will have important options to explore.
- What is the monthly mortgage payment? Based on all the above questions, you will have a good idea of what your monthly payment will be owning your new home. As you develop a budget for your new home, you’ll want to make sure you include insurance and taxes in your monthly payments. You’ll also want to consider home maintenance costs like planned and emergency repairs or issues like roof damage. If you are currently renting a home or an apartment, sometimes your monthly mortgage payment is actually less than your rent or close to it. It pays to check all your mortgage options.
To make sure your homebuying experience is an exciting time, you’ll want to ask your mortgage lender these five questions. The daunting part can enter because you will need to be prepared to complete lots of documents, answer many questions and perhaps explain any past credit issues.
These questions are designed to get you started. There are more, so talk to one of our mortgage loan experts at Kalamazoo County State Bank. Call us today at 269.679.5291 or visit us online at https://kcsbank.com/mortgages/.
Kalamazoo County State Bank is an Equal Housing Lender.