You're tired of paying high rent for an apartment in your city, and it's your goal to move into a home that you can fix up to meet your needs. You know that you'll need to get a mortgage to be able to afford it, but do you know the questions you should be asking when you shop for a loan?
There are many things you'll want to keep in mind when you decide to get a mortgage. If you don't ask these questions, you won't be fully informed about your mortgage. Here are a few questions you need to have answers to before you agree to a mortgage.
1. What are the closing costs?
Find out about closing costs. Lenders need to estimate these so you know what to expect. Some lenders will allow a down payment and closing costs to be combined with the loan at a higher interest rate, which could help some people buying with little capital.
2. What is the interest rate?
One of the most important questions to ask is what the interest rate is for the loan. You don't have to take the first mortgage loan that you're offered. Getting the lowest possible interest rate is the key to reducing what you'll owe over time.
3. What's the minimum down payment?
There's a possibility that you could get a lower interest rate if you have a down payment for a portion of the home.
By asking these questions, you'll help yourself make better decisions regarding your mortgage. A good mortgage helps you save money in the long term on an important investment in your future.
Source: Bankrate, "10 mortgage questions to ask your lender," Janna Herron, accessed May 15, 2018