5 Questions You Should Ask Your Mortgage Company

A loan can be very helpful when you are ready to purchase a home, but you should understand what you are getting yourself into prior to signing. When applying for a loan, you want the best deal possible so here are some important questions to ask your mortgage company before signing:

1. What is the Interest Rate?

Depending on the loan you apply for and your credit history, you will be offered an interest rate. You want to ensure your interest rate is reasonable enough so that you can afford the monthly payments without burdening your household.

2. What Documents Do I Need?

When you need a loan, it can be a time-sensitive issue, so you want to do everything you can to speed up the process. By finding out what documents you need before applying, you can get the ball rolling and receive a quicker response.

3. What Type of Loan is Best?

There are many different types of loans suited for various family situations, such as conventional mortgages, FHA loans, USDA Loans, VA Loans, and more. There are also refinance mortgages, loans for purchasing 2^nd homes or investment properties, and construction loans. Varying interest rates, qualification criteria, payment types, and other factors all play a part in selecting the best loan for you. Talk to the lender and guarantee that you receive a loan that fits your needs.

4. What is the Minimum Down Payment?

Different types of mortgage loans require different levels of down payment. Once you know how much you will need to put down, you can assess your finances to determine if you will have enough for things like closing costs, regular living expenses, furnishing your new home, etc. Many people would rather pay a small down payment, but if you make a larger one, you will have smaller monthly payments.

5. Can I Lock My Rate?

Interest rates tend to change, and if you don’t take one you are given, you run the risk of losing it and getting a higher rate later. Locking your rate gives you peace of mind by allowing you to hold on to the preferred rate throughout the process and avoid any spikes in the market.

Apply with Butler Mortgage

Getting a mortgage loan stays with you for a long time, so it is imperative that you ask all the right questions and get the best loan for you. Butler Mortgage wants to work with you and use our 20+ years of experience and many loan programs to meet your unique needs. Call us at 407-931-3800 and request a free consultation today.