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4 Questions to Ask your Mortgage Consultant

When you search for a new mortgage for your upcoming real estate purchase or home loan refinance plans, you understandably may compare loan programs that are offered to you by different mortgage consultants. You may assume that the mortgage options are similar in all important ways and that the consultants are providing you with the best overall option that they have available. You may also assume that all consultants offer the same types of loan programs. However, when you do a little digging to get more information about the options, you may be able to learn more about the options presented to you as well as options that you otherwise may not know about. These are some of the top questions to ask your mortgage consultant before you decide to move forward with a specific loan program.

What Are the Loan Program’s Requirements?

Some mortgage consultants are more skilled at screening applicants for specific loan programs than others. While many mortgage loan programs have similar requirements, there may be a few notable differences. These differences, such as where the down payment money is coming from or your ability to document your income for a specific number of months, can potentially make or break your ability to be approved for a mortgage with one loan program. However, these may not be requirements for another loan program. When you ask about loan program requirements, specifically ask about what documents the lender needs to see in order to satisfy those requirements.

Are the Fees Negotiable?

Some fees associated with a new mortgage are not negotiable. For example, the appraisal and title insurance fees are usually fixed. However, mortgage company fees, lender fees, application fees and more may be negotiable. Keep in mind that if you have a rather complicated loan request, the lender and mortgage company may both be uninterested in negotiating. However, if you have a seemingly simple loan request and especially if your loan request is for a larger loan amount, you may be able to more easily negotiate a better deal on some of the fees.

What Documents Are Required?

Regardless of the loan program that you decide to move forward with, it is important to get a list of all documents that may be required for the loan upfront. One of the reasons for this is so that you can get a head start on some of the documents that may take more time to locate. In some cases, you may need to order original copies of different documents, which can take some time. Another reason to take this important step upfront is to ensure that you fully understand all of the lending requirements. Even when you specifically ask about the requirements, there is always a chance that the consultant may overlook a requirement or is not aware of a requirement.

What Are the Other Financing Options Available?

Many mortgage consultants assume that applicants prefer a 30-year mortgage with the lowest interest rate possible. To obtain the lowest interest rate possible, you may have to pay an extra fee to the lender or mortgage broker. This may increase closing costs. Each applicant has different goals and objectives, such as the desire to pay off a mortgage earlier or to keep the mortgage payment as low as possible. Ask your mortgage consultant for a few different options so that you can compare them fully side by side. Remember to ask about negotiable fees for each of the options presented to you so that you get a better idea of the best options available. It may be helpful to discuss your short-term and long-term goals with your mortgage consultant so that he or she can assemble the best options for your specific situation.

Applying for a new mortgage is a serious matter because it is the initial step associated with taking on a very large debt. For some people, this could be the largest debt that they will take on over the course of their entire lives. With so many loan programs available and with each applicant’s individual goals and circumstances, it is important that you are as proactive as possible in your effort to set up home loan terms that are advantageous for you.

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