When people think about talking to a real estate professional before buying a Kenai house, they usually think about a real estate agent. But there is another professional that can be key to you being able to purchase a house: a mortgage lender. If you don’t have cash saved up to buy your house outright than you’re going to need a mortgage.
You might think that all mortgage lenders are the same, but they aren’t. That is why you should shop around to find the right mortgage lender the same way that you should shop around to find a real estate agent. Different lenders have access to different products. To make sure you get into the right mortgage, you need to know the right questions to ask.
While most people automatically think about the standard 30-year mortgages there are many other options that you can choose from. There are fixed rate, adjustable rate, interest only, and negative amortization. Chances are good that when you talk to a lender, they will try to steer you into a certain program, but it’s your right to explore all your options.
If a lender fails to mention a program that could be a better fit for your situation then you are going to be making the wrong financial decision without knowing about it.
It’s important to find out before choosing a lender that you understand exactly how much the loan is going to cost you. Each lender has different fees that they charge for processing the loan. For example, there could be charges for things like the home appraisal and credit check.
Make sure you understand what the fees are and what you will be paying out of pocket.
In order to get the lowest rate you’ll need to have a high credit score and show that you are responsible with paying back your loans. However, the exact rate that you get will be determined based off many different factors.
Make sure you compare rates between multiple lenders. But you also need to make sure that you are comparing on the same day because rates can change at any time.
Some lenders have prepayment penalties. It’s important to understand how your loan will work if you decide to pay it off early. Make sure you understand the terms and what penalty you’ll pay in this situation.
If you are in need of closing quickly this is one question you don’t want to skip asking. The closing time can range from several weeks to a couple of months. While your lender may not be able to give you an exact amount of time it will take to close they should be able to give you an estimate.
Don’t let the excitement of the Kenai home search process distract you from getting the details about the loan. Your mortgage is important for your financial future, so always ask before signing on the line