How to Choose a Mortgage Lender: Questions to Ask

If you're buying a home for the first time, you might be wondering what you should ask a mortgage lender. We've put together a list of important questions and a few more to ask the best home loan lenders in Colorado or broker before you sign on the dotted line for your home loan. This way, you can rest easy knowing you're ready for what's to come.

What Will My Fees And Payments Be?

One of the first things you need to think about as a home buyer is your budget. If you know how much you can spend on a home, you can narrow your search and keep your expectations in check. When you ask your mortgage lender how much house you can afford, they will look at your income, assets, and credit score.

After looking at your finances, the best home lenders in northern Colorado will tell you how much your monthly payments might cost and break down the costs. You'll find out about your interest rate, closing costs, property taxes, and other fees that will be added to your monthly payments. Your mortgage lender will also help you figure out how much you'll need for a down payment.

Which Types Of Mortgage Terms Do You Offer?

There is no one kind of mortgage loan that is better or better for everyone. Because more than one program might work for you, it's important to talk to your mortgage lender about your options.

What Credit Qualifications Do You Require?

A credit score is a three-digit number that tells lenders how likely you are to pay back the money you borrow. The easier it is to get a mortgage loan, the better your credit score. But even if you have bad credit, you can still find ways to buy a home. You may just have to pay more for your loan.

Do You Offer Mortgage Points?

Mortgage points, which are sometimes called "discount points," are an optional fee that you can pay at closing to "buy" a lower interest rate and save on the overall cost of the mortgage loan. Each mortgage point costs 1% of the total loan amount.

Do I Need An Escrow Account?

An escrow account is a type of savings account that holds money for taxes and insurance premiums that have already been paid. Escrow accounts are often required for loans backed by the government, but they are not always necessary for conventional loans.