There are a large number of mortgage lenders in the market place. To choose your mortgage lender, first of all, it is important to narrow down the list of lenders. Once you have narrowed down the list, the next step is to compare the mortgage rates offered by these lenders. This is the time when many mortgage related questions may crop up in your mind. It would be wise if you ask mortgage questions so as to clear all your doubts. Here we discuss few typical mortgage questions that may come to your mind.
On interest rate
One pertinent question that may arise is related to the rate of interest associated with the mortgage loan. Rate of interest is very important as it determines the repayment amount. In case of adjustable rate mortgages (ARMs), rate of interest changes very quickly. Moreover, if you do not have near to perfect credit report, you may not be offered the lowest rate of interest by the mortgage lender. In order to make a comparison among the different mortgage programs, it is important to know the annual percentage rate (APR) of the mortgage interest. The annual percentage rate includes lender’s fees and naturally it is higher than the initial quoted rate. If you know the APR of different mortgage loans, you can effectively compare mortgage loans, which help you immensely to pick the best mortgage loan.
On qualifying criteria
You may be interested to know about the qualifying criteria to obtain a mortgage loan. The eligibility criteria are related to your employment, income, credit history, assets and liabilities. Apart from the conventional mortgage loan programs, there are some other mortgage programs such as the VA loans, first-time home buyer programs and other mortgage programs backed by the federal government, the eligibility criteria are more easy.
On documents to provide
This is one important question that may arise in your mind. While applying for the mortgage loans, you need to furnish proofs of your assets and income. Some mortgage lenders may demand some more documents also. In some cases, borrowers with excellent credit record may also be eligible for a no-documentation loan. But for a no-documentation loan, buyers may have to make hefty down payment and higher rate of interest.
On loan processing time
This is also a very vital aspect that you take very seriously. The time that is actually required in taking out a mortgage loan, depends upon several factors. When there is huge rush for loan business, it may take more time to complete the loan processing. Usually, it is said by the lenders that it would take two weeks to complete the loan processing. However, in most of the cases, it actually takes 45 to 60 days to complete the loan processing.
On what can delay the approval
It is important to know the factors which can delay the loan approval process. You need to provide accurate and complete information so that the loan approval process runs smoothly. Change of employment, increase or decrease in salary etc. have to be reported to the concerned authority on time.
While applying for a mortgage loan, many questions may crop up in your mind. Before making the final call, you need to clear all your doubts.