Anew Lending Mortgage explains the key questions to ask a mortgage broker.
Anew Lending Mortgage is a reliable mortgage broker in Sacramento, CA. These professionals discuss the key questions to present to a mortgage broker.
When you are ready to buy a home, it is always good to shop around for the best lender and rate. Working with a mortgage broker is an excellent way to get the loan product you need because they have access to many types of loans at great rates.
If you choose to work with a mortgage company to buy a home or refinance an existing loan, it’s essential to know which questions to ask a mortgage broker to ensure that you get the right home loans program in Sacramento.
Questions to Ask a Mortgage Broker
What Is the Best Type of Mortgage to Consider?
Not all mortgages are the same. A professional mortgage broker will take the time to understand your financial situation to recommend a suitable mortgage for your needs. They should also know the details of the loan products they suggest for you, such as whether a loan has an adjustable or fixed rate, to help you make an informed decision.
What Are the Origination Fees?
Some lenders have upfront fees for processing a mortgage loan application. That is an origination fee or lender fee. They can range between 0.5% to 1% of the loan amount.
What Is the Mortgage’s Interest Rate and Annual Percentage Rate?
A home loan’s APR or annual percentage rate is a complicated calculation consisting of the lender fees and interest rate divided by the loan’s term. Brokers often compute APR differently. It is also hard to accurately calculate the APR for an adjustable-rate loan.
You should always ask the mortgage broker about the loan’s interest rate and APR. Ask the lender to pin down the adjustment frequency, the highest rate, and margin if your loan has an adjustable rate.
How Much Money Is Necessary for the Down Payment?
People often assume they need a 20% down payment on a new home, but that isn’t always the case. Well-qualified homeowners can pay as little as 3% with standard mortgages and private mortgage insurance.
Some loans, like VA loans, don’t require that insurance. However, your closing costs and monthly payments can be higher if you put less money down.
About Anew Lending Home Mortgage
Anew Lending Home Mortgage is a leading Sacramento, CA, mortgage lender with a team of experienced loan officers with access to a wide range of loan products to fit nearly any situation. Their brokers guide clients throughout the entire loan process to make it less stressful to acquire a home loan.
Call 916-655-9325 to speak with a team member and learn more about the differences between using a mortgage broker vs. the bank.
