Before you commit to working with a mortgage broker, you should ask some questions. These questions can range from what down payment assistance programs are available to what the rate tables should look like. Read on to get the details. Below are some more questions to ask your broker. Hopefully, you’ll find these useful. Read this article and start a conversation with your mortgage broker. Hopefully, you’ll feel more comfortable asking Finance Valley the questions.
Rate tables
Before you commit to a mortgage, it is important to understand how rates are calculated. The mortgage rate table displayed by lenders will vary, depending on several factors and assumptions. The only rate that is guaranteed is the one you lock in. Additionally, you may not qualify for the advertised rate if you have a poor credit score or if you’ve recently had a loan default. As such, it is important to ask your mortgage broker why the rate they’re offering you doesn’t match the market average.
Loan estimate
There are several things you need to know about a loan estimate. You’ll want to know the total monthly payment, mortgage interest rate and closing costs. You can also ask about special programs that may lower your monthly payment. A loan estimate will also tell you how much down payment you can afford, and how much you can qualify for a loan with a lower interest rate. In addition to asking about the loan estimate, you should ask your broker about the loan amount, down payment, and other costs that may affect the loan amount.
Down payment assistance programs
When looking for down payment assistance programs, you should consider whether you qualify for any of them. While some programs are aimed at first-time homebuyers, others may be open to repeat buyers as well. Other down payment assistance programs may also restrict the type of property you can buy, such as rental properties. However, many programs are more than willing to work with anyone – and are available through many large companies, including your mortgage broker.
Closing costs
If you’re getting ready to buy a home, you may be wondering what closing costs to ask your mortgage broker. While many closing costs are negotiable, others are unnecessary. For example, a lender may charge you high administrative costs, such as courier and mailing fees. In addition, some closing costs may be subsidized by the seller, who may contribute up to 6 percent of the sale price.
Mortgage insurance
If you’re considering getting a mortgage loan, you need to understand the costs and benefits of mortgage insurance. Mortgage insurance is an essential part of your mortgage, as the monthly payment depends on the balance of the loan and the length of the loan. You can reduce the costs of mortgage insurance by shopping around for no-PMI mortgage loans. Mortgage insurance may be required with some loan products, however. For example, FHA loans require mortgage insurance no matter how much you put down. Once you’ve signed the contract, you can’t cancel it unless you refinance.