Keith Richardson, Saint Augustine, FL
Keith Richardson is a licensed mortgage broker located at 22 Desoto Pl, Saint Augustine, FL 32084. See full profile and details below.
What to Ask When Applying for a Mortgage
Getting ready to purchase a home? Make sure to ask these questions when you are applying for your mortgage
What is the interest rate? Right away, you need to ask your lender for an interest rate quote, and the annual percentage rate (APR) for the loan. Since the APR accounts for fees and other loan related charges, it gives you a comparison among lenders. Make sure to shop around until you find the loan you are comfortable with
How many points does the loan include? A point is a fee that is paid to the lender at closing in exchange for a reduced interest rate. For example 1 point = 1% of your total mortgage amount. Make sure to ask how many points are included in the quoted interest rate and what the benefits might be to buying more or fewer points.
How much do I need to put down? To get the best possible rate and terms for your loan, it is usally best to put down at least 20% if possible. If you put less than 20% down, more than likely you will have to pay private mortgage insurance. A down payment can also affect other things like your rate, terms and monthly payments. Ask your lender about the minimum down payment that is required for your loan and then decide what is right for you.
When is the interest rate locked in? Interest rates are always fluctuating. Sometimes locking in a low rate can really pay off for you. Ask the lender when you can lock down the rate and for how long. Lenders will usually offer lower interest rates for shorter term locks and higher interest rates for longer term locks.
What are the estimated closing costs? Remember, factor in the various costs and fees associated with buying a home. Particularly, closing costs. Closing costs include loan origination fees, appraisal fees and attorney fees (if any) to name a few. Get an estimate of your closing closts so you can budget accordingly.
Are there any special requirements? There are many qualification guidelines for home buyers applying for a mortgage. Typically, requirements relate to income level compared to debt, employment status and credit history. However, if you are a veteran or a first time home buyer, you may be eligible for a government sponsored mortgage program. Talk to your lender to see if you qualify.
What could possibly cause a delay? The best way to avoid delays is to stay in constant touch with your lender and to always provide the most up to date and accurate documentation in a timely fashion.
This gives you some idea of what types of questions to ask your mortgage broker. We are not affiliated with any mortgage companies or brokers listed on this site and are merely an information source for consumers.