5 Important Questions To Ask When Applying For A Mortgage

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As a mortgage broker in Colorado Springs, Reichert Mortgage is committed to matching individuals and families with a mortgage that is right for them. Buying a home is a momentous decision, one that comes with a lot of excitement and commitment. That is why our team offers our expertise to ensure the mortgage you receive sets you up for success. Whether you are a first-time homebuyer or have recently found the perfect home to retire in, we are dedicated to giving you the best options possible when it comes to purchasing a home. 

While buying a home is an exciting time, it’s not something that happens often. Many homebuyers, whether it’s their first time or tenth time purchasing a home, feel overwhelmed when applying for a mortgage. While our mission as a mortgage brokerage is to help make the process as easy as possible, it’s important to be prepared with questions to ask when applying for a mortgage. Knowing the right questions to ask can help make sure you receive a mortgage that will work for you long term while saving you from potential pitfalls and costly agreements. To equip you with the knowledge you need to make the right decision about a mortgage, our team has created a list of the five most important questions to ask when applying for a mortgage. 

1. Which Type Of Mortgage Is Best For Me?

When seeking a mortgage for a new home, you will most likely be given plenty of options by the lender or broker. An important question to ask is, “Out of all the options, which will work best for me?” With their experience, a mortgage broker or lender should be able to guide you in the right direction. If you wanted to further analyze your options, you could ask for the pros and cons of each mortgage and make your decision based on those. If you notice your lender pushing you towards a pricier option, that may be a sign they are more interested in making a sale than looking out for your best interests. If this happens, it is in your best interest to seek a third party’s advice. 

2. How Much Down Payment Do I Need?  

While the typical down payment is 20 percent of the home’s purchase price, many homebuyers qualify for different down payment options. Qualified buyers can choose to pay as little as 3 percent down. It’s important to know each down payment option comes with its own benefits and downfalls. A mortgage broker or lender should take the time to walk you through the benefits of each, and help you make a decision that is best for you.

3. Do I Qualify For Any Down Payment Assistance Programs?

Each state offers a variety of down payment assistance programs that have proven to be highly beneficial for homebuyers. Even if you think you won’t meet the requirements for receiving assistance, simply asking can help you save significantly on your mortgage payment. A mortgage broker will be well-versed in your state’s specific programs and can help you apply for eligible assistance options. 

4. What Is My Interest Rate?  

While this question may seem obvious, some mortgage lenders may try to hide the total interest rate in additional fees and fine print. Make sure that before you agree to a mortgage, you know the complete amount of interest you will be expected to pay when all is said and done. Additionally, if you are considering an adjustable-rate mortgage, it will be important to know how often the payment interest rate will be adjusted over time. Overall, your interest rate should be equal to or below your state’s current average.

5. What Will My Monthly Mortgage Payment Be?

This question is essential when determining if a mortgage is manageable both short and long term. If the payment is too much of a stretch, a different mortgage may suit your needs better. Additionally, it will be important to know if there are any penalties if you pay off your mortgage early. This is an unfortunate trick some mortgage lenders attempt to use in order to profit off of your hard work. Any ethical broker or lender won’t have penalties for early payoff. 

Find The Best Mortgage For You With The Reichert Mortgage Team  

Reichert Mortgage is committed to offering efficient and honest mortgage advice. We understand the mortgage process can oftentimes be overwhelming, which is why we prioritize helping our clients find the perfect mortgages for them. When you meet with one of our team members, they will ensure you are equipped with all of the information you need to make an informed decision. If you are ready to speak with one of our knowledgeable mortgage brokers, contact us today! We would love to help you take the next step towards attaining your dream home.   

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