Most Frequently Asked Questions about Mortgage Loans

Most Frequently Asked Questions about Mortgage Loans

Although Lendingcapital.net does not offer residential mortgagesrn(Commercial-Investment Property Only)-we want to help individuals understandrnwhat it takes and make it as easy as possible when buying a home, after allrnitis likely one of the biggest purchases of an individual’s life. Thisrnnaturally raises many questions in the person’s mind. Asking the toughrnquestions and even the easy questions is what’s going to help you make yourrnstrongest investment. With questions, you can quickly assess a lender, or arnloan product, based solely on what you ask and the answers you get back. Whilernmany buyers skip this step, taking the extra time to comparison shop and askrnquestions could save you a major amount of money over the life of yourrnmortgage. Here are the most frequently asked questions about mortgage loans:

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Which Type of Loan Is Best for Me?

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There are a variety of loan options available in the market, and you’llrnneed to discuss them with your mortgage lender before making a decision. One ofrnthe main decisions you’ll need to make is whether an adjustable-rate mortgagernor fixed-rate mortgage better suits your situation and needs. Besides the raterntype, you will also need to discuss the effect different loan terms will havernon your larger financial picture with your lender.

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What Documents are Required?

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You need to be prepared to fulfill documentation requests from severalrnmembers of a lending team during the loan process. The documents required willrnvary depending on the loan for which you’re applying; however, the most commonrndocuments include pay stubs, bank statements, and tax returns.

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How does the Appraisal Process Work?

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Lenders will require a property appraisal as an objective way tornestimate the fair market value of a property for both a home purchase loan andrnmortgage refinance. Typically, lenders maintain a list of reliable andrnreputable professional appraisers. Lenders will assign one of these appraisersrnto review the property. Lenders generally save the borrower time by arrangingrnfor the appraiser on the borrower’s behalf.

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What Costs are Involved?

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You will be required to pay some costs up-front before loan closing.rnThese may include appraisal fees, credit report fees, and application fees. Yournshould discuss all these costs with your mortgage banker to determine how muchrnmoney will be required before the loan being approved. You’ll also want torndiscuss any funds that will be required to complete the loan closing.

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When Will I Get a Loan Estimate (LE)?

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A Loan Estimate is a three-page document that a lender must providernwithin three days of receiving your application. It will include estimatedrninterest, estimated monthly payment, and estimated closing cost. It isrnimportant to bear in mind that a Loan Estimate is just an estimate. The actualrncosts of your loan may be slightly higher or lower.

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