JoshApplying for a mortgage is an exciting time, it means that you’re either moving forward with purchasing or building your dream home. Chances are this is one of the biggest spends you’ll make in your lifetime, so you’re going to want to take a minute to make sure you’re making the best decision for you and your family. If you’re just getting started, or wanting to double check you’re getting off on the right foot, here are my top 4 questions to ask a mortgage lender:
1. What Type of Loan Would be a Good Fit
A Phoenix mortgage lender is a great option if you want a personalised loan service. That’s why I suggest asking what type of loan would be a good fit for your financial situation. There are so many different types of loans available it can be overwhelming trying to sort through them yourself, so asking for the best one or two options is an easy way to get started.
2. What Will the Interest Rate Be
This is one of the biggest factors of your loan as it will impact how much you end up paying over the course of the loan. Try to negotiate an interest rate that is as competitive as possible, as this will save you hundreds if not thousands of dollars over the course of your loan.
3. Is There an Early Repayment Penalty
Paying back your mortgage as quickly as possible can be an excellent way to reduce the overall amount of money you pay. It also can be a wonderful way to feel that extra level of security you can enjoy once your mortgage is fully paid. It’s important to check to see if there are any additional fees or expenses for paying your loan back early. You can use this this repayment guide for reference.
4. How Long Will It Take?
I have personally had a bad experience where I applied for a mortgage to build, and the process took much, much longer than expected. This resulted in a delayed build, which has meant I’ve had to spend extra time in rented accommodation. Knowing how long the mortgage process takes before you need it can help take the pressure off the building or buying process. Depending on your situation, it might be a good idea to seek mortgage pre-approval well ahead of time so there’s nothing holding you up.
Being as informed as you can be before signing along the dotted line can help transform your finances for years to come.
