Buying a home is an exciting, nerve-wracking, and emotional process for most buyers. Knowing more about mortgage loans can help reduce the stress and increase the anticipatory pleasure of finding your dream home.
Some questions you should ask from any mortgage lender are:
What is the interest rate and term of the loan?
What are points, and how many am I paying?
How much are the property taxes and insurance for this home?
Is the interest rate fixed or adjustable?
Will there be a balloon payment due, and if so, when is the due date?
Are there pre-payment fees or penalties?
How does the loan and escrow process work?
These are basic questions you should always ask to make sure you understand the deal that the bank is offering. Also, read every page of the loan contract and ask for clarification of any terms or sections that are unclear. Ask a lawyer or real estate specialist to read over the contract whenever possible. Don’t be shy about telling the loan officer you want to have someone read over the loan paperwork. This is a very common practice and is quite wise to consider when you are spending thousands of dollars!
Finally, after selecting your mortgage and signing the papers you need to make that mortgage payment a priority. Keep your account in good standing. Having a solid, on-time payment record will help your credit rating. In addition, if you ever decide to refinance, a good credit record is vital to get the best deal.
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