Always ask your mortgage broker before taking a loan. The years of your life depend on the responses you receive, from unexpected fees to the right type of loan for you. If you don’t like the answers you get, continue shopping for the right loan until you find a mortgage broker Seattle that is convenient for you.
Also, keep in mind how much your broker knows about you and the best advice, support and accurate information they can provide you. You can share your personal information, including allowing a broker to operate your credit report.
1. What type of loan is best for you?
Famous brokers especially want to know more about you before throwing loan options. You do not expect a doctor to recommend surgery before examining your medical condition, so select a broker who will gather enough information from you before determining a particular type of loan. Ask the broker to explain the pros and cons of fully fixed-rate loans, adjustable-rate loans, interest-only loans and negative loan loans, and find out how each fits your personal situation.
2. How much payment is required?
The generally accepted answer to this question is 20%, but not always mandatory. If you qualify, you can pay as little as 3% with some types of loans, but it has pros and cons, so inquire about all your options. A disadvantage is that you will pay for private mortgage insurance if you have less than 20%. This means higher final costs and an increase in monthly payments until you reach an 80% credit-to-value ratio. When you have at least 20% equity in your home, brokers offer very low-interest rates.
3. What is the cost?
The cost of the loan includes loan fees, as well as fees for third party vendors – estimates, credit statements, title policies, pest inspection reports, escrow where applicable, registration fees and taxes. The evaluation of these fees must be accurately associated with a document called a credit evaluation, which the broker should provide you with federal law.
brokers are required to provide a credit estimate upon completion of an application, as well as an assessment of the borrower’s name, their Social Security number, property address, property value, loan amount and borrower’s income. However, before you apply for a loan, you must estimate the costs in advance.
4. What are the interest rate and annual rate percentage?
The annual percentage rate of the loan (APR) is obtained by a complex calculation, which includes all related lending charges divided by the interest rate and loan term. Not all brokers calculate APRs equally, and there is no way to correctly calculate the APR rate for a suitable mortgage according to current mortgage rates. There is no APR account for initial payments. If your interest rate is reasonable, ask your mortgage broker about the frequency of the adjustment and the maximum annual adjustment, the maximum rate, the index and the lowering of the margin.
5. Do you guarantee the closing time?
A big challenge is closing the transaction on schedule. Your purchase agreement will have an escrow closing date but is usually subject to the broker’s ability to close on time. If the broker fails to do so for one reason or another, it may mean additional costs or problems for you. Ask about any interest rate increase if your lock ends, and you have to pay for the restructuring move so what are the additional costs for you. Find out how these and other costs come together.
You are not limited to these questions
Not everyone specializes in mortgages and mortgage loans. A good rule of thumb is to ask what you don’t know. Only a stupid question you don’t ask; If you definitely understand, then it is okay to ask for clarification.