The home-buying process is rewarding, but also tedious. In fact, deciding that you’re interested in purchasing a house is just the first step. Where do you turn next? Consider making an appointment to meet with a mortgage broker.
Below are five things to have in order before you make the call to schedule an appointment.
Income details
The mortgage broker will want to know the current details of your income. Typically, recent pay stubs and tax returns will suffice. They will use this information to determine your borrowing power for a loan.
Savings
Your savings balance will help give the broker a better idea of how much you can actually afford. Be sure to print out the balance of all savings accounts that you are currently using.
Assets and liabilities
Again, this will enable the broker to get a better grasp of where you’re at financially. It will also help when the loan process comes into play. For assets, you’ll want to compile any type of investments, savings accounts, and motor vehicle records. For liabilities, take note at any personal loans, credit cards, and car loans.
Identification
This may seem like a no-brainer, but a broker needs proof of identity. Not only should you bring your license with you, but also a back-up method like a passport. Detailed identification will help when a credit check is necessary.
Questions
Last but not least, come prepared with questions. This is the perfect time to get any worries or concerns that you may have out in the open. Even if you need clarification on a topic, now is the time to ask. It’s best to come with a written list so you won’t forget anything. Although there are quite a few steps in the home buying process, there are professionals, like mortgage brokers, to guide you throughout the entirety.
General questions:
- What are the most popular mortgages you offer? Why are they so popular?
- Are your rates, terms, fees, and closing costs negotiable?
- Do you offer discounts for inspections, homeownership classes, or automatic payment set-up?
- Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?
- What escrow requirements do you have?
- What kind of bill-pay options do you offer?
Loan-specific questions:
- What would be included in my mortgage payment (homeowner’s insurance, property taxes, etc.)?
- Which type of mortgage plan would you recommend for my situation?
- Who will service this loan—your bank or another company?
- How long will the rate on this loan be in a lock-in period? Will I be able to obtain a lower rate if the market rate drops during this period?
- How long will the loan approval process take?
- How long will it take to close the loan?
- Are there any charges or penalties for prepaying this loan?
- How much will I be paying in total over the life of this loan?
