What is the right loan for you? There is much to know about the various types of loans out there. As a potential buyer, you’ll want to know what your best options are and you want to thoroughly discuss this with your loan officer before committing to any of the numerable offers out there. Your officer will know their ins and outs on the various options out there and will help you with the best option. Your needs are going to be different and individualized to your self so you will have to discuss your financial situation and where you hope to be eventually.
You are going to want to ask about the interest rate and annual percentage rate of a home. In addition, you’ll want to ask if your interest rate is adjustable, highest rate, index, and margins.
What are ALL the costs? There are often costs that go beyond the lender fees. There are often third party fees for appraisals, pest inspection, credit report, escrow, title fees, taxes and etc. You will want to ask your lender for an estimate for all of these so that you can get the best picture of what you’ll be spending.
Is there a prepayment penalty? This allows the loaner to collect 6 months of “unearned interest”. Most states don’t allow this but it is something you should ask about in case you do.
Anything that you might not be 100% sure about. Knowing how to manage your home mortgage is no simple task and isn’t something everyone is an expert in. If your unsure of something, it never hurts to ask your loaner to clarify it.