Must Ask Questions When You Get Your Mortgage

Whether you’re buying a house or refinancing, there is more to a mortgage than the rate. Here are some questions to ask while mortgage shopping. You’ll have to ask yourself some of these questions; others can only be answered by mortgage professionals and insurers.

How long do I plan to stay in the house?

That’s often a hard question to answer. Try anyway because a lot of your decisions depend on the answer.

The answer affects whether you should get a fixed-rate or variable-rate loan. If you’re thinking of refinancing, the answer helps you decide whether you should refinance at all.

If you have no idea how long you’ll live in the house, keep in mind that home-owners stay in one residence for a median duration of 8.2 years, according to census data. In other words, half of home-owners move within 8.2 years. The other half, naturally, stay in their homes longer. Do you feel “average”? If so, maybe it means you’ll stay home for about eight years or so. (FYI, with renters, the median stay in one residence is 2.1 years.)

What are the costs of getting the loan?

When you apply for a loan, your Mortgage Manager or Broker will run what is known as a ‘Preliminary Assesment’. It estimates how much the lender will charge you for origination and discount fees, a valuation, document preparation, title insurance (if needed), and a myriad of other costs. Compare good estimates and ask if you need further clarification.

Have you ever been hit with any outrageous fees? Do you have a proposal you’d like to run past us? Let the team know in a comment below or call us.