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Before committing to a mortgage lender, you should research, read reviews and ask tons of questions. Get ready to provide the mortgage loan officer all of your personal information so they can give you the best advice and assistance. If you don’t like the answers to any of the questions continue shopping around. Even if you like the answers still shop around for the best rates.
Here are a few questions you need to ask your mortgage lender.
What is The Interest Rate?
Interest rates are apart of your monthly payments, also ask about annual percentage rates. Both are essential percentages that will help you pick the best deal
Is The Mortgage Fixed or Adjustable?
A fixed mortgage interest rate remains the same for the duration of the loan, while an adjustable- rate mortgage fluctuates. If you do choose an adjustable-rate mortgage, make sure ask when and how often the rate will change.
How Do I Qualify For This Loan?
Mortgage lenders look at your financial history, savings, and your debt-to-income ratio. A good gauge for whether or not you’ll qualify for a mortgage is getting pre-approved.
What Are The Mortgage Fees?
When you’re ready to close on a property, you will be expected to pay a few one-time fees. Find out these fees so you can work it into your budget.
What is The Minimum Down Payment?
Saving up for a down payment can be tough. However, remember the more you put down on a home, the better. The standard down payment here in The Bahamas can be between 5% – 20%.
What is The Monthly Mortgage Payment?
When you find out how much the mortgage payment is, be sure you can afford to pay it along with the other costs of homeownership. Remember factors such as maintenance and repairs, utility, future kids, savings, etc.
Is There a Prepayment Penalty?
Prepayment penalties let the lender collect an additional six months or more of “unearned interest” if you pay the loan off early through refinance or sale of the property.
How Much Time do You Need to Fund?
On average loan processing periods fall between 21 and 45 days, Find out the turnaround time and what obstacles could be holding up the closing.
Do You Guarantee on-time Closing?
Your purchase contract will contain a date to close escrow, but that date is generally subject to the lender’s ability to close on time. If the lender cannot settle on time, that could mean extra cost and problems for the buyer such as an increase of interest rate if the lock expires, additional expense, loss of home if the buyer/rental lease is over.
If you have any questions to ask or would like more advice, leave us a comment below.
Sales Agent – Appraisal Associate
1 242 376 9789