Questions You Need to Ask Your Mortgage Lender When Securing A Loan In New York
Buying a new home is a huge expense and the kind of financial decision that takes planning and preparation. Unless you have large stash of cash lying around, chances are you’re going to need to get a loan or mortgage to pay for the home you’re about to buy. When you’re trying to find a mortgage lender, there are several ways to go about this. Your first thought might be to head over to your bank and apply for a loan there. While there’s nothing wrong with this approach, you may end up limiting yourself to the loan products that your bank offers. Although most banks do have home loans and mortgages available, you can’t be certain this is always the best deal. Here are some tips as you look for a mortgage broker in New York and the needed questions to ask a mortgage lender.
Working With A Real Estate Agent
Whether you’re a first-time home buyer or a seasoned investor in real estate, it’s highly recommended that you enlist the services of a real estate agent. Aside from the help and guidance they provide throughout the buying process, their experience and knowledge make them the perfect person to tell you how to get the best deal on property in New York. But most importantly, your real estate agent can also refer you to a trusted mortgage broker in New York. The relationship between your real estate broker and your mortgage lender means that there can be closer communication between the two which allows for quicker clarifications on the property in question as well as your agent being able to look for houses that will qualify for the kind of loan you’ll need.
Questions To Ask A Mortgage Lender
When you meet your mortgage lender for the first time, there are some key questions you should ask. These questions and their answers will greatly influence your budget and the kind of home you can ultimately buy and will also prepare you for all the financial requirements of the purchase.
How Much Can I Borrow To Purchase A Home?
Lenders consider many factors when you apply for a loan such as your income level, debt, employment status, and credit history. The amount that they’ll be willing to lend will be a major factor in your budget for your new property. Talk to your lender about getting prequalified and preapproved before you start shopping to make the process go more smoothly.
How Much Money Do I Need To Put Down?
Almost all loans will require an upfront down payment and the amount that you pay up front will affect the rate and terms for your loan. If your down payment is too low, there’s a chance that a monthly private mortgage insurance payment will be added, increasing your costs. Ask your lender for more information about the minimum required and if you’re eligible for any down payment or cost-saving assistance programs.
What’s The Interest Rate?
From the get-go, you should ask your lender for a direct interest rate quote and the corresponding annual percentage rate (APR). The APR accounts for fees and other charges so it gives you a direct comparison among lenders.
When Can I Lock In The Interest Rate?
Interest rates always fluctuate so ask your lender when you can lock a particular rate. Locking in a low rate can really pay off. Remember, lenders will usually offer lower rates for shorter-term locks and higher rates for longer-term.
What Are My Estimated Closing Costs And Are There Any Other Costs Or Fees?
Closing costs can include loan origination fees, appraisal fees, and attorney fees. Your lender should provide you with a Loan Estimate so you can budget accordingly. You should also be provided with a Closing Disclosure detailing all the costs associated with the loan. Be sure to work with your real estate agent as they can also give great insight to any expenses you can expect during the buying process.
Get In Touch With Us For Your Agent Or New York Mortgage Broker Needs
If you’re trying to find a mortgage lender or even a real estate agent, contact us at Procopio Team at Hunt Real Estate. We help our clients in every step of the buying process and can help you get pre-approved for a loan from our trusted partners.