You may think of an initial mortgage loan consultation as nothing more than orientation, but while it’s true that you make no commitments at this stage, that first mortgage consultation begins the path toward closing on your new home. To make sure you’re not saddled with costs you won’t be able to handle down the line, it’s crucial to ask the right questions.
Always grill your mortgage broker by asking:
What Questions to Ask During Your Mortgage Loan Consultation
- What interest rate is being offered, why, and can it be more favorable? In case of adjustable-rate mortgages, what nasty surprises do you have to prepare to encounter in the future?
- How high will your monthly payments be?
- What’s your APR (annual percentage rate), and how will it change?
- What hidden costs that might remain buried in paperwork if you don’t look closely do you need to be aware of?
- Are there any penalties if you pay your mortgage off early?
- How much time is needed for your loan application to be processed — so you’ll know if you can close on time?
While you may have other important queries of your own, never skip these ones, which will arm you with a ton of much-needed information, when you attend your mortgage loan consultation — and don’t forget to take notes!