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Most Frequently Asked Questions about Mortgage Loans
Date : 2021-09-20
Although Lendingcapital.net does not offer residential mortgages\r\n(Commercial-Investment Property Only)-we want to help individuals understand\r\nwhat it takes and make it as easy as possible when buying a home, after all\r\nitis likely one of the biggest purchases of an individual’s life. This\r\nnaturally raises many questions in the person’s mind. Asking the tough\r\nquestions and even the easy questions is what’s going to help you make your\r\nstrongest investment. With questions, you can quickly assess a lender, or a\r\nloan product, based solely on what you ask and the answers you get back. While\r\nmany buyers skip this step, taking the extra time to comparison shop and ask\r\nquestions could save you a major amount of money over the life of your\r\nmortgage. Here are the most frequently asked questions about mortgage loans:
Which Type of Loan Is Best for Me?
There are a variety of loan options available in the market, and you’ll\r\nneed to discuss them with your mortgage lender before making a decision. One of\r\nthe main decisions you’ll need to make is whether an adjustable-rate mortgage\r\nor fixed-rate mortgage better suits your situation and needs. Besides the rate\r\ntype, you will also need to discuss the effect different loan terms will have\r\non your larger financial picture with your lender.
What Documents are Required?
You need to be prepared to fulfill documentation requests from several\r\nmembers of a lending team during the loan process. The documents required will\r\nvary depending on the loan for which you’re applying; however, the most common\r\ndocuments include pay stubs, bank statements, and tax returns.
How does the Appraisal Process Work?
Lenders will require a property appraisal as an objective way to\r\nestimate the fair market value of a property for both a home purchase loan and\r\nmortgage refinance. Typically, lenders maintain a list of reliable and\r\nreputable professional appraisers. Lenders will assign one of these appraisers\r\nto review the property. Lenders generally save the borrower time by arranging\r\nfor the appraiser on the borrower’s behalf.
What Costs are Involved?
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You will be required to pay some costs up-front before loan closing.\r\nThese may include appraisal fees, credit report fees, and application fees. You\r\nshould discuss all these costs with your mortgage banker to determine how much\r\nmoney will be required before the loan being approved. You’ll also want to\r\ndiscuss any funds that will be required to complete the loan closing.
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When Will I Get a Loan Estimate (LE)?
A Loan Estimate is a three-page document that a lender must provide\r\nwithin three days of receiving your application. It will include estimated\r\ninterest, estimated monthly payment, and estimated closing cost. It is\r\nimportant to bear in mind that a Loan Estimate is just an estimate. The actual\r\ncosts of your loan may be slightly higher or lower.