What Should I Ask When Purchasing a Home?
Purchasing a new home can be thrilling; it can also be a bit daunting. It is important to understand exactly what you are signing up for, and all those numbers, terms, and phrases can often get confusing. This is why it is important to know what to ask and why when purchasing a new home.
Below are just a few questions that are important:
What is the interest rate?
You should ask your lender for a direct interest rate quote. You will also want the corresponding annual percentage rate (APR) that applies to this loan. The APR accounts for fees, as well as other loan-related charges.
How much should I put down?
Your houses down payment should be at least 20% if you can, however, a lower down payment doesn't disqualify you. A monthly private mortgage insurance (PMI) payment will be applied if your down payment is below 20%. How much your down payment is also affects other variables, such as monthly payments and terms. You will want to speak with your house lender for more information regarding your down payment, and if there is any assistance available to you, as down payment assistance programs do exist for qualifying buyers.
Closing Costs and Other Fees?
Closing costs can include loan origination fees, appraisal fees, or attorney fees (where applicable). You will be provided with a Loan Estimate, by your lender, showing the final and approximate cost of your loan. As your closing date approaches, your lender will provide you with the total amount of money you will need to complete the sale of your new home. This will be provided in the form of a Closing Disclosure. Your Closing Disclosure will include:
- Closing Costs
- Mortgage Interest
- Property Taxes
- Homeowner's Insurance
Keep in mind that it is a good idea to compare your Loan Estimate to your Closing Disclosure.
These are just a few important questions you should ask your lender.
Some other questions you may have may include:
- How long are your turnaround times on pre-approvals, appraisals, and closings?
- When can I lock in the interest rate?
- Difference between a fixed-rate and an adjustable-rate mortgage?
- Can any fees be waived or included with my mortgage?
It is important to ask any questions that may come to mind. The more information you have, the better prepared you will be for this major purchase and commitment. Our knowledgeable team at ProVisor is more than happy to answer any questions you may have. We want you to be comfortable and take some of the confusion out of the home buying process. If you are in the Milwaukee, Waukesha, Madison, Brookfield, East Troy, Watertown, or greater Wisconsin and Midwest areas, call us today for the best mortgage solution for your home!
