When you are shopping for a lender, try not to make a snap decision that you will end up regretting down the line. Your home will be your most significant purchase to date, and as such, finding the right lender can prove to be a challenging task.
With the help of these questions, you will be able to narrow down your search a little as you journey to find the right mortgage lender for your home.
- Is this the most ideal time for me to buy a property?
The lender’s response can vary based on your circumstances. However, their opinion in this situation will be of the utmost importance as he will factor in your debt-to-income ratio, analyze how much down payment you plan on putting down, and other such factors. They will also help you understand when it would be ideal if now is not the best time for you.
- Can I pay in points to reduce my interest rate?
Yes, you may indeed be able to pair your interest rate with mortgage discount points. One point typically gets you one percent of the loan amount. Suppose you have one point on a $250,000 mortgage, which would total $2,500. Your lender will be able to help explain your options to you. If you plan to live in the property for a long time, it would be ideal to pay points.
- What kind of personal debts, such as; credit cards or loans, should I pay off to qualify for a reasonable interest rate for my mortgage?
A lender will be able to tell you what they’re specifically looking for in your credit history and your options for improving your score overall. Any 700 or above is good enough to qualify for a reasonable interest rate. If it is above 800, then your interest rate would be incredible.
- How much will I need to pay at closing? Is there a specific mode of payment preferred?
You may not know this, but you could become a victim of scams when paying through electronic transfers. The last thing you want is to lose money that would have otherwise gone towards a home for you. As such, always make sure to ask and understand the amount you will pay at closing and the specific payment method that the lender prefers.
- Who will be servicing my loan?
These are particular loan servicing companies responsible for collecting your mortgage payments and dealing with missed payments, if any, down the line. There are lenders out there that will service mortgages themselves or outsource servicing. You won’t get to pick and choose, but it surely helps to be prepared and have all the information you need.
Still don’t feel like you have enough information? You can always reach out to real estate experts like Martin McFarlane to get answers to your Markham real-estate worries. Reach out to them now and get started.