If you’re ready to buy a new home, then there’s a good chance you’re looking into the possibility of working with a mortgage lender in Pompano Beach. If you’ve never bought a home or commercial property before, then you’ll have a lot to learn, as the world of mortgage lending is vast. Fortunately, with a company such as Ace Mortgage Loan Corporation, we’re here to walk you through the essentials, step-by-step. In this article, we’ll highlight the top ten questions you should be asking your mortgage lender so that they can most accurately help you achieve your homebuying goals. Keep reading to learn more!
- Ask Your Mortgage Lender in Pompano Beach How Much to Borrow
One of the most important questions to ask a lender is how much you can borrow. The mortgage lender will look at a handful of deciding factors, including your income in comparison with debt, credit history, credit score, employment history, and your current employment situation. If you’re a first-time homeowner or you’re a veteran, you might be eligible for government-assistance mortgage options that can lower the cost and make the process easier.
- How Much Should You Put Down?
This question refers to your down payment. The larger down payment that you make, the lower your month-to-month loan costs. However, many individuals are not in a place to be able to put down a significant down payment. It’s recommended by real estate experts that someone attempt to put down at least 20% of the total purchase price. With at least 20% down, you’ll avoid higher interest rates, monthly payments, and you’ll avoid any limiting terms that can come with lower down payments.
- Check the Interest Rate
The next thing you’ll want to do is check what the current interest rate is. The interest rate changes over time, and if you’re in while the interest rate is low, you’re in a great position. Knowing where the interest rate is on its fluctuating scale can help you better understand what type of loan you’ll want to choose. In addition to the interest rate, try asking about the annual percentage rate of the loan. In essence, you’ll want to ensure that you’re getting a comprehensive understanding of what fees are going to be associated annually and monthly.
- Fixed-Rate or Adjustable?
The next question is identifying whether you’ll want a fixed loan or an adjustable-rate loan. The difference between the two is a relatively simple concept. A fixed-rate mortgage ensures that the interest rate stays the same for the duration of the loan. An adjustable-rate loan has interest rates that change as the market does, meaning that the payments will fluctuate. Fixed-rates can come with higher down payment requirements, while adjustable-rate loans have a lower down payment threshold. While there will be factors, such as credit, to consider, you’ll also need to decide if you’re okay with a changing payment, or if it’s more stabilizing for you to have a consistent payment.
- Understand the Closing Costs
As mentioned above, you’ll want to understand all of the costs associated with buying your house and moving forward. One of those costs to be wary of is the closing cost. This includes loan origination fees, attorney fees, and appraisal fees. Get a complete list of what’s all included and how much each of those individual items are going to cost you. This will help you to set your budget.
- Ask About Other Hidden Fees
Last, but not least, you’ll want to ask about any extra hidden fees that you might be aware of. There’s nothing worse than thinking that you’ve budgeted correctly, only to find that there’s an extra amount added to your previously considered costs. Some people ask their lenders for a spreadsheet laying out all of the costs they’ll be paying so that there’s nothing surprising that arrives later.
Contact Us Today!
If you’re looking for a mortgage lender in Pompano Beach, you’re in the right place. At Ace Mortgage Loan Corporation, we’re a team of individuals who have been in this industry for decades. We’ve watched as the market has changed, and we’ve been able to help our clients cope, shift, and navigate. If you’re looking for a team to help you buy your next property, contact our lending team at 954-945-7841. We’re here to help you succeed!