Questions You Should Ask The Lender - Riddhi Siddhi Multi Services

Buying a home is an exciting experience, but it can be one of the most challenging if you don’t understand the mortgage process. A lot of families often feel overwhelmed due to the amount of paperwork they have to complete.

Riddhi Siddhi Multi Services  have written this article to help you navigate through the mortgage process—from the people involved, to the costs and forms you’ll be asked to complete— and how you can take steps to make sure you keep your home long term. Understanding the primary purpose and function of the documents in the mortgage process, as well as the role of the many professionals involved, will make the mortgage process much less intimidating. You need to ask these question to your mortgage lender before going into any agreement. Riddhi Siddhi Multi Services have delivered successful projects to clients across the board to help them take their business to the next level.

  •         Is the lender a mortgage broker or a mortgage lender? This question is hard to determine when the lender is not a bank. A mortgage broker does not make a loan, but rather acts as an agent for the customer to find a suitable mortgage lender and usually charges a fee for their service as an independent contractor. The mortgage lender is the company actually making the loan.
  •         What is the interest rate and what is the annual percentage rate? The interest rate is the rate of interest contracted for the duration of the loan. The annual percentage rate is the yearly rate for all finance charges, interest and any prepaid charges.
  •      Is the rate fixed or adjustable? A fixed rate mortgage has the same rate for the full term of the loan. An adjustable rate mortgage changes interest rate depending on the changes in an index to which the loan rate is linked. Your interest rate can increase or decrease as a result of these changes and subsequently your monthly payments are affected accordingly.
  •         Will I have to pay points (prepaid finance charges)? A point is one percent of the mortgage loan paid up front by the buyer or the seller to the lender.
  •         How much will closing costs be? Lenders impose charges for such items as obtaining your credit report, title insurance, a survey of the property, an appraisal, notary fees, deed preparation, and other provided services.
  •         How long after I apply will the rate be guaranteed? Some lenders will guarantee a specific rate for a specific time period, some will not. Some charge a fee to lock in the interest rate, some do not. Be sure to get any rate guarantee in writing.
  •         How long will it take to process my mortgage application? This could affect the timeframe for successfully completing your purchase of a specific piece of property. Get a time commitment in writing from the lender.
  •         What are the terms of the loan and how much will my mortgage payment be each month? This figure should include principal, interest, taxes and insurance.
  •          What charges will I have to pay up front? These are commonly known as closing costs. They include any points, credit report charges, appraisal fees, document preparation, title insurance, etc.
  •          Is there a prepayment penalty? This is important if you wish to pay more than your normal monthly mortgage payment in order to reduce the length of time you are paying and reduce the total amount of interest you pay over the term of the loan. Do not sign a form that states “there may be a prepayment penalty”. Address this issue up front, in writing.


Riddhi Siddhi Multi Services team of prolific advisors and accomplished successful projects for various industries & verticals. We deploy advanced legal solutions and offer training to empower client’s business goals for better business growth.

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