Finding the right home for you can be quite challenging, but an experienced mortgage lender having your back will make a big difference. In order to assist you in getting the most out of your chosen mortgage lender, here are 5 questions you should ask your lender when buying a house in Baltimore:
DO I QUALIFY FOR ANY PROGRAMS?
The first big question to ask your lender is if you qualify for any special rebates or programs that will lessen the financial burden when buying your home.
Military veterans qualifying for a loan through the Department of Veterans Affairs can purchase a home with no down payment and no need to pay monthly into Private Mortgage Insurance. First-time homebuyers that qualify for a loan through the Federal Housing Authority can oftentimes purchase a home with reduced down payment and closing costs.
Give your lender the details of your current situation and see how they can make them work for you.
WHAT ARE THE RATES?
If you go to apply with a lender online, you should be able to find a section that details their current interest rates and Annual Percentage Rate, or APR.
Take this up-to-date information with you to any meetings with your lender prior to locking in your rate to discuss any possibility of locking in your interest rate. Regarding locking in your interest rate, make sure you find out when this can be done, and for how long.
Some lenders will only allow you to lock in an interest rate prior to closing for a certain amount of time, so keep this in mind when trying to lock in your interest rate relative to your closing.
HOW WILL YOU STAY IN CONTACT WITH ME?
Much like every other portion of a real estate transaction, communication is key.
You want to hire a mortgage lender that you know will take every step they can to ensure communication between you and the lender is quick and crystal clear. Find out with whom you will be communicating throughout the buying process, especially when you have questions to ask your lender.
Can you expect to always hear from one particular individual, or will there be a team of people with which you may discuss details? You want to leave your lender knowing exactly who to reach out to during the process.
HOW MUCH WILL THIS COST ME?
Any person buying a house has money on their mind at all times.
Being upfront with you about the expected costs means your lender wants to keep you prepared in order to make this real estate transaction a success for both of you. From the very beginning with your lender, you may encounter an origination fee, which is an application processing fee. These days, quite a few lenders have done away with origination fees to the benefit of the home buyer.
Once you have been pre-approved, you’ll meet with your broker and get the details of additional expenses, like inspection, appraisal, closing costs, and down payment.
WHAT IS A REALISTIC TIMEFRAME FOR CLOSING?
Finally, planning how and when you are moving is a giant part of buying a home.
You don’t want to be moved in without electricity or gas, so there are utility start and stop dates to precisely arrange. While some delays due to inspections, appraisals, and underwriting are to be expected, it’s extremely helpful to have a ballpark idea of when you could be moving in from the get-go.
Guidance on Questions to Ask Your Lender in Baltimore
The home buying process can be confusing, especially when it comes to your mortgage. If you have questions you want to ask your lender, contact us today at (410) 276-7827!