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Buying your first home can be both an exciting and stressful experience. Your home represents a huge financial investment and you want to be sure that you're making the right decision for yourself and your family. If you're considering buying a home, be sure to ask your mortgage banker these eight essential questions. What types of mortgages do you offer? It's important to understand the types of mortgages that your broker offers. Most lenders offer fixed-rate mortgages (FRM) and adjustable-rate mortgages (ARM). The type of mortgage that best fits your needs will depend on your overall financial situations, how you want to handle repayments and the amount that you want to borrow. Can you explain what mortgage will be best for me financially? Your mortgage banker should be able to clearly and succinctly explain what type of mortgage best fits your financial needs and why. Be sure to ask the broker detailed questions about why a particular type of mortgage fits your situation. What is the total cost of taking out my mortgage? When you take out a mortgage, you pay more than just closing costs, the total amount of the loan and interest. You'll also pay originating fees, title and escrow fees, and yield spread premiums. Ask your mortgage banker to detail each and every charge you'll need to pay in the course of taking out a loan. What documents will I need to have in order to get a loan? In order to qualify for a mortgage, you'll need to prove that you have a source of income. You'll provide pay stubs, 1099 forms, asset reports and reports on your debts to your lender. All of this information, along with your credit report, will be evaluated before you can be approved for a loan. How can I know if I'll qualify for a mortgage loan? If you've had financial problems in the past or simply don't have a credit history, you may wonder if it's even worthwhile to apply for a mortgage. While there are no guarantees that you'll be awarded a loan, working with a mortgage banker is the best way to know your options. Your broker will evaluate your information and talk to you about the loans for which you'll qualify. How long will it take to process my loan application? How long it takes to process a loan application will depend on when you turn in paperwork and how many other applications are being processed by the lender. This process can take anywhere from a few weeks to a few months, so be sure to ask your mortgage banker to give you a time estimate. Who will be my escrow and title agent? The title agent is responsible for searching for the property's title to ensure that it can be sold. You can ask your lender or realtor to recommend a title agent. Many realtors have exclusive relationships with certain title companies. Should I expect delays during the approval process? Ask if there are any factors that make it likely that processing of your loan will be delayed. Remember that turning in all necessary paperwork in a timely fashion is the best way to ensure that your application will be processed quickly. About the Author Steve Peterson is the Branch Manager for the Lake Tahoe office of Sierra Pacific Mortgage. With more than 20 years of lending experience, he began specializing in helping clients in the Lake Tahoe and Truckee areas finance their home purchases in 1992. Steve is adept at the unique challenges of lending in resort markets. With an MBA in finance, he can understand the complexities of high income borrowers, the challenging guidelines for resort condos and second homes. He brings a unique knowledge of the Lake Tahoe area which is critical in today’s challenging mortgage market. To get more useful articles or to learn more about Steve and his team, go to their ">www.financingtahoe.com"> website or contact Steve directly at 888-232-7687 (wk), or 775-219-7151 (cell), or by sending him an email at steve@financingtahoe.com.
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Mortgage, Broker, Tahoe, Real Estate, Mortgage Broker, Home, Buyer,
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