Posted on: 17th Apr, 2006 02:35 am
Here are some of the questions that the government suggests buyers should ask before agreeing on a mortgage with a lender.
Q1. How much can I afford to borrow?
OR
What will be my monthly payments and what are the fees will I have to pay?
Q2.How can I judge which mortgage program is best for me?
Q3. Why are you selling me endowment policy or an ISA? Why it is best option for me and how much commission are you being paid?
Q4. Is it possible to make a lump sum payment so that I can reduce the size of the loan?
Q5. Do you charge any redemption penalties?
Q6. Is it compulsory to have insurance with the mortgage?
Q7. What are the other charges that I will have to pay?
Q8. What happens if I fail to pay off the mortgage?
I Hope this will help you to get the best deal.
Thank You,
Dylan :D
Q1. How much can I afford to borrow?
OR
What will be my monthly payments and what are the fees will I have to pay?
Q2.How can I judge which mortgage program is best for me?
Q3. Why are you selling me endowment policy or an ISA? Why it is best option for me and how much commission are you being paid?
Q4. Is it possible to make a lump sum payment so that I can reduce the size of the loan?
Q5. Do you charge any redemption penalties?
Q6. Is it compulsory to have insurance with the mortgage?
Q7. What are the other charges that I will have to pay?
Q8. What happens if I fail to pay off the mortgage?
I Hope this will help you to get the best deal.
Thank You,
Dylan :D
Good questions. We've just bought a property and got some of those questions answered. It's a big step for anyone!
Welcome Meg,
Congratulations for your new home.
It is indeed a big step to be a home buyer and it takes a lot of reserach and shopping before you can actually find the home of your dreams with the financing option you prefer.
Good luck!!
Congratulations for your new home.
It is indeed a big step to be a home buyer and it takes a lot of reserach and shopping before you can actually find the home of your dreams with the financing option you prefer.
Good luck!!
Whenever you are taking out a mortgage loan, it is very important to select a genuine lender. If you are not able to select a genuine lender, your dream of owning a home may be in jeopardy.
This is true that a person should necessarily know about the payments he / she would have to make and many details, which at times may not be quoted but then may create problem for the buyers.
If you have answers to all these questions, then it would indeed be a good purchase. This kind of well informed purchase will guarantee that you won't face problem after you make the purchase.
Well, this typically depends on the terms of your lender and on the contract you have with your lender. But, listed below are the most common points that you need to consider to help make a clear evaluation of your lender.
• First, think about how much you can borrow. Even if your lender can offer you a much bigger amount than what you intended to borrow, only borrow what you can because as the amount of your loan increases, the higher the interest rate would be as well.
• Ask your lender how much his interest rates are and about his terms. Should he be expecting you to pay on a monthly, quarterly or yearly basis? And ask how much he is expecting you to pay per term.
• Consider your other options. Inquire about his different programs and opt for the one which will benefit you the most.
• Choose lenders which reduce the size of the loan when you make lump sum payments.
• Ask about redemption penalties, hidden charges and penalty fees if you fail to pay off the mortgage.
Hopefully the points listed above will help you find a lender that will best suit your needs and your financial capabilities. Once you are approved, make sure that you make it a habit to check your credit reports regularly so that you are always reminded of your monetary responsibilities.
• First, think about how much you can borrow. Even if your lender can offer you a much bigger amount than what you intended to borrow, only borrow what you can because as the amount of your loan increases, the higher the interest rate would be as well.
• Ask your lender how much his interest rates are and about his terms. Should he be expecting you to pay on a monthly, quarterly or yearly basis? And ask how much he is expecting you to pay per term.
• Consider your other options. Inquire about his different programs and opt for the one which will benefit you the most.
• Choose lenders which reduce the size of the loan when you make lump sum payments.
• Ask about redemption penalties, hidden charges and penalty fees if you fail to pay off the mortgage.
Hopefully the points listed above will help you find a lender that will best suit your needs and your financial capabilities. Once you are approved, make sure that you make it a habit to check your credit reports regularly so that you are always reminded of your monetary responsibilities.
As we all know, mortgage lenders are more willing than ever to work with borrowers to keep them in their homes. Negotiating with a lender can certainly help you keep your home, but mortgage negotiations can be complicated, so contacting an experienced foreclosure attorney in your local area is a good steps ahead.
Good questions to ask a potential lender.One more question would be:
Q. Do you offer loan rate locks.
The rate you getting at pre-approval may not be the same rate you get on final loan.You can request for loan rate lock at pre-approval.Some lenders offer this.
Q. Do you offer loan rate locks.
The rate you getting at pre-approval may not be the same rate you get on final loan.You can request for loan rate lock at pre-approval.Some lenders offer this.