It is important that you ask questions to prospective mortgage loan officers about the mortgage process, especially if you are first-time homebuyer. The loan officer will go over what loan product that you qualify for and also provide you an estimate of closing costs, etc... So investigate all options available before making your the final decision.
Before beginning your search for a condo or a home, you need to think about what your comfort-level is pertaining to maximum monthly mortgage payment and/or purchase price.
Whether you are purchase a residence for the first time or second time a loan officer can help you check for eligibility and loan formalities.
Here are few basic questions that you might want to ask your mortgage officer before hiring him/her.
What mortgage loan products are available and which is right for you?
There are different types of mortgage loan products that have been custom designed by the government to help a borrower finance properties within his/her financial limitations.
Mortgage products may have different interest rates depending on the duration of the mortgage loan. After you submitted you’re loan application with your financial details, the mortgage officer will than go over with you what mortgage loan product or products that you qualify for; maximum purchase price, monthly payments with taxes, homeowner's insurance, and for a condo or a townhome the association fee; and also how much the estimated closing costs and down-payment amounts is needed.
What documents are required by the lender?
Besides details of your employment and salary statement, you will have to submit personal identification details along with a credit history and also documentary proof of other assets.
The cost of mortgage is decided on the basis of the“Closing Disclosure” which gives line-wise estimation so you can compare rates and expenses of several lenders before making up your mind.
Consumer Financial Protection Bureau
Closing Disclosure (CD)
What are the qualifying guidelines and how long will the process take?
Most banks and financial agencies require home buyers to meet certain criteria before granting mortgages for residential properties like minimum annual income, financial obligations, credit, and existing assets and so on.
Check with your mortgage company about these details when collecting information about mortgage guidelines. When a borrower presents all requested documentation pertaining to a mortgage application and the conditions in a timely-fashion than the details can be verified and the application can be processed.
Please contact your bank or mortgage lender to discuss and/or ask questions pertaining to the mortgage process and details in regards to loan products that suit your mortgage needs.