Let’s face it. It’s much more fun to look at houses online, and scour Brighton neighborhoods for “for sale” signs than it is to start researching home loans. In fact, when the time comes, some may just decide to keep looking at pictures online and avoid taking steps towards getting a mortgage.
However, with the proper help regarding your Brighton mortgage, it’s not as hard as it might look. In fact, knowing the right questions to ask will make things much easier! Here are several questions you’ll want to ask.
#1 What type of loan should I get, and why is it best?
There are five common mortgage loans. Let’s take a look at their definitions so we have a better understanding of them.
- Conventional loan: “A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity.”
- Jumbo mortgages: “A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA).”
- FHA loan: “An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA).”
- Fixed rate mortgages: “A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan.”
- Adjustable rate mortgages: “An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.”
Obviously, everyone is going to need something different. And not everyone will need to learn more in-depth about every kind of mortgage. However, this is an important question to ask. And the company helping you should give you more information about the kind of loan that is right for you.
#2 How much money do I need to put down?
Generally, this is another question that varies from buyer to buyer. However, it is very important to make sure you have your ducks in a row. The surprise of owing two or three times what you thought won’t make for a very happy start-off. Don’t be embarrassed to be honest about how much you can or can not spend.
#3 What is my interest rate?
It may be helpful to brush up a little on what this question about interest rates means. But if you go to a trusted mortgage company like Mortgage One Brighton, you don’t need to worry. We’re here to help you. Even if you don’t understand what this has to do with your mortgage, it’s a vital question to ask, and will end up making more sense down the road.
#4 What fees will be included in my loan and what fees will be due at closing?
Typically, there isn’t one simple answer to this. However, there will at least be an answer or a few answers that will make things less confusing. Obviously, no one works for free, so expect some fees to come with your mortgage. This is the same as other products and services that have their associated fees.
#5 What is the process for closing a loan?
We talked earlier about the fees that would be due at closing. But did you even know there would be a closing on your Brighton mortgage? Don’t worry if you didn’t. A good mortgage company will help you understand everything there is to know, as well as guide you through the process.
Bonus: How long till my loan closes?
The anticipation is starting to build, and you’re getting butterflies in your stomach. But don’t expect things to happen too fast. Be sure to ask how long until the process is done, so you know what kind of timeline you’re looking at. You’ll want to know when it’s time to start buying new furniture and start planning all things house.
Play it safe before securing your Brighton mortgage
In the end, these questions won’t only make you look smarter than you feel, but they’ll actually help you understand more about what you’re doing. In addition, hearing how a company answers these questions will give you a good idea if they are trustworthy. They should be able to explain what the process of getting a mortgage is like and what it will look like for you specifically.
If you’re ready to get started, we encourage you to take some time to get to know us a little more. And then feel free to drop by and ask us any other questions you may have!