What to ask to your mortgage lender?
The mortgage application process is not known for being simple, especially if you are doing it for the first time. Even with DMC’s pre-approval and easy-to-fill-out online application it can get overwhelming at times. To make the process as simple as possible, we have prepared a list of questions you should find answers to.
Make sure your lender is an expert the mortgage lending
Check if lender is licensed.
Ask about lender’s experience. Knowledgeable and experienced loan officers will take the time to truly understand your application, consider all aspects of the deal and prepare a thoughtful, well-structured mortgage offer.
Don’t be afraid to ask the lender why you should choose their offer. Give them a chance to explain benefits, upside and downside.
List all costs associated with the mortgage application
The down payment isn’t the only amount you will need to get a mortgage. You will also need to pay origination fee, open an escrow account, pay for notary services, register your property in the Land Book, get the property’s appraisal and insurance.
Ask your loan officer for a detailed explanation of application process and all costs associated with it.
Make sure you understand your mortgage agreement
What is your interest rate and why? Will it be adjusted? How often it will be done? What is your monthly payment? Will it increase? What happens if you can’t pay back your mortgage? Is there a penalty for paying off your loan before the agreed loan term?
Read your loan agreement carefully and ask loan officer to explain everything you don’t understand. If possible, seek legal advice from a lawyer who has experience in drafting loan agreements.
Ask about special deals and support programs
Ask if there are special offers for housing in new projects (for example smaller down payment or origination fee). Check if you qualify for any of government support programs (e.g. ALTUM). There are possibilities to qualify for a loan, speed up the process or save some money even when it comes to mortgages.
Please note that loan terms will differ for different types of properties. Ask your lender what properties require a higher down payment, shorter term or higher interest rate.
A mortgage is a long-term commitment. Make sure you are informed about all the important aspects of your agreement. Double-check if your lender has offered you the best option. Use the DMC resource center to research your mortgage application process or schedule a meeting with our loan officer to discuss all questions in person.
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