Things you should clarify before taking a mortgage

Most people would opt for a mortgage if they are planning to buy a house. Always look for the mortgage lender who can provide you with relevant data which has been gathered from your financial records and who could recommend you the best suitable type of loan. You need to check the following questions with your lender before you opt for a particular finance for your house.

    • Cost of mortgage: Before choosing a particular mortgage loan always check for the costs associated with it. The cost should include the fee of the lender, appraisal fee, title fee, credit report fee etc. You should even check for the origination fee and the discount points. Check with the lender the rate of interest and the annual percentage rate of the loan before choosing one. As these costs could influence the overall cost of loan makes sure that you know everything about the loan.
    • If the lender is big or small: This is because choosing a direct lender would be a right option rather than choosing a big bank as he would have much control over the entire process of your mortgage loan. The direct lender could make your process run at a faster rate. It would be easy for you to get all your queries cleared as you can directly ask the lender. They ensure to handle all the in-house works for you when you are working with the lender.

  • Experience of the lender: There are different types of mortgage loans available in the market. According to the customers’ requirement, the banks or lender would suggest the right and best suitable mortgage loan which would be beneficial for the customer. You can ask the lender regarding the lending institutions and their specialists who could assist you in choosing the appropriate one that would meet your needs.
  • Working of appraisal process: You may check with your lender how the appraisal process would work. This is because you cannot get stuck with a lender who could always choose lowest bidder. You need to have number of appraisers or various options to choose your own appraiser. Choosing smaller pools would be the best idea as the local appraisers would have in depth knowledge about the housing prices in your area. It could be feasible for the local appraiser as they can speed up the mortgage process and can get back to you within a short period of time.

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