Mortgages can be confusing to navigate, especially if you’re looking to become a first-time homeowner. To understand your mortgage better, you need to ask your mortgage company the right questions. While there are questions you could ask, we’re going to break down the six most important questions that you should ask when working with your mortgage company.
What Types of Loans Do You Offer and Which One is Best for Me?
While this might seem like we’re combining two questions into one, we feel that these two questions go hand-in-hand. First, finding out what kinds of loans your mortgage company offers can give you an idea of the potential options you have moving forward. Most mortgage companies offer ARMs and fixed-rate mortgages. The important thing here is to find out what the lengths of these types of mortgages are so you see if you can save money in some way.
Some mortgage companies also offer fixed loans that go for anywhere between eight to 30 years long, but not everyone offers the same terms. You also need to consider things like if they offer a VA, FHA, or USDA loan, or if they have special financing offers for a condo. All of these things are important when deciding if a mortgage company offers a mortgage that best fits you.
The second part of this is determining exactly what’s best for you. When you’re speaking with a mortgage company, be sure you give them as much information as possible so they can find the best match for you. This also allows the mortgage company to line up multiple options and even provide you with side-by-side comparisons, so you can weigh the pros and cons of different options before making a final decision.
What Will My Annual Percentage and Interest Be?
Interest rates can be confusing, especially since they can differ based on several factors. When looking at interest, there are two rates you’ll be looking at. First, you have your base interest on your loan. This is the standard interest that you see on your mortgage, which usually depends on things like your credit score, where the home is located, the amount of the mortgage, what kind of down payment you make up front, the term of the loan, and what kind of mortgage it is.
The other interest rate you need to consider is the APR or annual percentage rate. This rate is your interest rate plus additional things like different fees and expenses, such as prepaid interest. Your mortgage company should be able to explain what all of this means and what factors will go into determining what your rates are.
Will The Underwriting Be Handled In-House?
What is underwriting and why should you care? Underwriting is the process where your mortgage company verifies all of your information to ensure that you qualify for the mortgage that has been offered to you. You should find out if they will be handling everything in-house and what to expect during the underwriting process.
You should stay in contact with your mortgage company during this process so you can follow up with them about any updates and provide any additional information they may need. Ask your mortgage company about the best way to stay in contact with them during this process.
Are There Any Hidden Fees?
While your mortgage is in the servicing phase, there may be several hidden fees that come up along the way. You may not be able to get a straight answer from your mortgage company with this one. They may not know which fees you’ll be charged, because there’s a good chance that they will sell the servicing rights to your mortgage so they can make some extra money after your mortgage closes. That being said, it’s still worth asking since this isn’t always the case and it allows you to try and prepare yourself as much as possible while going through the servicing process.
What Do I Need For Closing?
It’s critical to be prepared for closing. We recommend asking your mortgage company what you need to bring when going to the closing table. The most common things you’ll usually need include a cashier’s check and your driver’s license, but each mortgage company has their own policies in place. Asking your mortgage company about these policies allows for a smooth closing process and helps you prepare for this situation.
Will My Loan Ever Be Sold?
While it’s not guaranteed to happen, your mortgage company will most likely sell your mortgage to a mortgage investor like Fannie Mae, Freddie Mac, or FHA. This doesn’t mean that you’ll lose all contact with your mortgage company. If there is a question or an issue with your mortgage, your mortgage company is the one you’ll contact. For example, let’s say you run into trouble with paying your mortgage. You would still call your mortgage company to see what options you have available for relief.
If You Have Any Questions About Getting A Mortgage, Call M&M Mortgage Today!
Getting a mortgage can be a hard and confusing process. At M&M Mortgage, we’re more than happy to walk you through the process and answer any questions you may have. Our team of consultants is knowledgeable about different kinds of loans and will help you find the perfect loan for your situation while creating a partnership with you with a healthy foundation that will last a lifetime.
We offer a culture of fresh thinking, perspective, insight, and a whole lot of hustle. Give us a call at (651) 639-9800 to schedule a consultation today or go to our website at themmmortgage.com to get a mortgage quote instantly. We’re in the pursuit of excellence and we put our clients first. We turn your dream home into a reality. Put the M&M Mortgage team to work for you!