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Finding the right loan takes time, and
the research can be complicated.
Be sure to ask lenders any questions that arise as you explore your
options and get the answers before you apply for your loan.
Does the application fee include the
credit report, or is that a
separate fee?
Some lenders include the credit report in the application fee, while
others charge for the credit report separately. Find out how your lender
handles it to avoid surprises during the application process.
Approximately how much should I factor in
for closing fees?
Your lender is required by law to provide
a Good Faith Estimate when you apply for your loan. However, experienced
loan officers will gladly provide a rough estimate of closing expenses
before you apply to make it easier for you to compare their loan against
other options you may be considering.
How long have you been in the mortgage
business?
Experienced loan officers will guide you through the application
process and will know how to present your background and financial
information to help you get approved.
Can I get pre-approved?
Many lenders can "pre-approve" you, which qualifies you for a loan by
checking your income, credit and other financial data. The pre-approval
will also indicate the price of a home you are qualified to buy. By
getting pre-approved, you learn the price range you can afford and the
loan amount you qualify for. Also, a lot of the initial legwork is done
in advance and you'll be better prepared once you find the home you wish
to purchase.
Can I lock into the interest rate when I
want to, or is the offer time limited?
Since interest rates can change daily, there may be a time period in
which you must lock in to ensure the interest rate you want. Many
lenders will give you the option to lock in anytime. Find out when you
must lock in before you make any commitments.
Will I be penalized if I pre-pay my
mortgage?
Make sure that you can pre-pay your loan
without incurring a penalty. You may not plan to make additional
payments in the beginning, but remember that your financial situation
can change during the term of your loan. The option to pre-pay can save
you thousands over time, providing you aren't charged a pre-payment
penalty.
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