How much should I pay upfront? Closing costs and down payment are important factors which could come into play years down the road. Purchasing discount points may cost you a little upfront, but if you plan to stay in your home for a long time, the interest they save you down the road could be substantial.
What is the total cost of my loan? How much interest will you pay over the life of this loan? If you intend to hold the property for a long time, this is an important question. Don't forget to include closing costs, and any discount points that you are purchasing upfront. When comparing loans, always look at your total cost.
Are there pre-payment penalties? Your mortgage broker should disclose this upfront, but it never hurts to ask. Sometimes fees apply if you try to pay off the loan early.
How can I be sure what kind of loan is right for me? There are many different financial products available to today's consumer. Some are very sophisticated and difficult to understand. Just because the rate is low or you qualify instantly doesn't mean it's the best product for you. Your mortgage consultant should be asking you plenty of questions to make sure they're recommending the right options. You don't want to make a 15 or 30 year commitment without fully understanding what you're getting into. In the past, people bought houses and planned to live in them for 30 years or more. Today many people purchase homes even if they aren't going to live in it for very long. Communicate your long term plans to your mortgage consultant so they can help you find the right product for you.
How will you communicate the status of the loan to me once I'm approved? A loan is never finished until closing. It is usually a process spread out over weeks and sometimes months. It is important to be able to check on the status of your loan throughout the entire process. A big factor in any smooth closing is how you communicate between your lender, the seller, and any realtor(s) involved.
If you have questions about how this could help you, call Jason Biro at Team One Lending: (561) 868-1808 ext.3