Questions You Should Ask Your Mortgage Lender

By -
When it comes time to buy a home at the Lake of the Ozarks, there is a lot that you will need to think about. There is more to buying a home than finding the home with your desired square footage and location. One of the biggest factors in the home buying process is your mortgage. Most people can't afford to buy a home outright so we rely on financing to allow us to buy a home. It's easy to become overwhelmed when it comes time to take out a mortgage and that's why the Fran Campbell Team has put together a list of questions to ask your lender before signing the papers.


1. What is the Interest Rate?

The first thing you should ask your lender for is a direct interest rate quote, as well as the corresponding annual percentage rate for the loan. The interest rate, along with your mortgage balance and loan term will determine your real monthly payment. A loan with a smaller balance or lower interest rate will make for smaller monthly payments. If you're not sure about the interest rate your lender has quoted you, don't hesitate to shop around with other mortgage lenders to try to get a lower rate.

2. What is the Monthly Mortgage Payment?

Buying a new home means starting a new budgeting plan. As you begin budgeting for your new home, it's important to make sure you can afford the monthly mortgage payment. Be sure to include insurance and taxes into your budget, along with other living and leisure expenses. Your monthly mortgage payment shouldn't be so high that your money can't work toward other financial goals.

3. What is the Minimum Down Payment Required?

Different lenders will have different down payment requirements. Most mortgages require a 20 percent down payment. But, for example, if you qualify for a FHA loan your down payment required could be as low as 3.5 percent. Keep in mind that typically loans with lower down payments cost more. Often, when putting down less than 20 percent, you're required to pay for mortgage insurance until your loan value falls below a certain amount. Your down payment has an effect on other loan aspects as well, such as your rate, terms and monthly payments.

4. Are there Any Prepayment Penalties?

Some mortgage lenders will put in the loan agreement that if you pay your loan amount off in full before a certain time frame, you're required to pay a penalty fee to them for early repayment. The reason for this is to ensure the lender that they will be getting paid regardless of how long you hold a loan with them. So it's important before signing off on a mortgage to ask your lender in advance if there are any prepayment penalties. Read through your loan documents carefully so that you understand any repercussions you may face for early payoff.


5. What Closing Costs will I Be Responsible For?

Closing costs are expenses over and above the price of a property in a real estate transaction. It's a good idea to get closing cost information upfront so you can begin preparing for this expense. Closing costs may include loan-origination fees, discount points, appraisal fees, title searches and insurance, surveys, etc. Ask your lender to estimate your closing costs so you can budget accordingly.

6. Are There Any Special Requirements I Need to Be Aware of?

There are all kinds of guidelines when it comes to applying for a mortgage. Typically, requirements related to debt to income ratio, employment status, and your credit report. But in some circumstances, you may be eligible for special mortgage programs offered by the government. The best way to find out is by speaking to a lender about all of the options that may be available to you.

When you're ready to start searching for a home at the Lake of the Ozarks be sure to reach out to the Fran Campbell Team and our experienced real estate agents at the Lake of the Ozarks can help you find a home. For more real estate related guidance, contact the Fran Campbell Team, the best real estate team at the Lake of the Ozarks to help you through the buying process!



Location: Osage Beach, MO 65065, USA

Comments

Post a Comment

Popular posts from this blog

Fran Campbell Team Attends RE/MAX Mid-States Success Celebration!

By -
Image
Fran Campbell Johnson, RE/MAX Lake of the Ozarks, was honored at the RE/MAX Mid-States Success Celebration in Kansas City on February 26, 2009, with the Platinum Club Award for 2008. The award honors successful agents who have earned at least $250,000 in commissions in the past year. In 2008, only 4% of the RE/MAX network achieved this prestigious award. The RE/MAX Mid-States Region is comprised of Arkansas, Kansas, Western Missouri, and Oklahoma and currently has 1,964 active realtors. On March 5, 2008, at the RE/MAX International Convention held in Las Vegas, NV, Fran was also honored with the “RE/MAX Hall of Fame Award” during the “Night of the Stars” Awards Ceremony. The “Hall of Fame Award”, which honors successful agents who have earned more than $1 million in commissions during their careers with the company. Fran Campbell Johnson has been working in the real estate industry for more than 20 years and joined RE/MAX Lake of the Ozarks in May of 2004. Winning these awards are a tr...
Read more

Declutter Your Home Like a Pro!

By MSW -
Image
Once you decide that it's time to  sell your home at the Lake of the Ozarks , one of the first things you will need to do is get your home ready to show to your potential buyers. You won't want to wait until after you put your home on the market to start cleaning and getting your home organized because you could have showings right away. Clutter and an unorganized house will put off your buyers because it's hard to focus on the unique features of your home when you have clutter everywhere. Not sure where to start on decluttering your home? Read on for some expert tips from the  Fran Campbell Team ! Set Goals The thought of decluttering your home can be overwhelming. Where do you even start? Making a plan and setting goals will help you stay focused and be efficient in decluttering your home. Start with a list or map of all the rooms and specific areas that need tackling. Then prioritize them by which area needs the most work. Set goals for when you want each area com...
Read more

5 Kitchen Upgrades that'll Improve Your Home's Value & Marketability!

By MSW -
Image
Are you thinking about  selling your Lake of the Ozarks home  in the near future? If you are, have you thought about making a few updates before you list? Sometimes the difference between selling your home quickly and not is making a few updates to appeal to your modern buyer. A great room to start in is your kitchen! The kitchen is generally one of the most criticized rooms and today, our team of  real estate agents at the Lake of the Ozarks  have a few suggestions for things to consider updating in your kitchen that could increase the value and draw in more potential buyers. 1. Backsplash A tile backsplash is all the rage right now. "Backsplash" refers to tiling the area of the wall above the countertop and below the cabinets above it. Modern kitchens use the backsplash to bring out certain colors in the decor scheme and accent surrounding features. Feel free to make your backsplash the color of your counters, your cabinets, your walls, your floors, or a unique col...
Read more