Buying your first home is exciting, but it can also feel overwhelming—especially when it comes to understanding mortgages. At Avanti Way Financial, we want to make the process easier and less stressful. To help you feel confident and prepared, here are some of the best questions to ask your mortgage lender before you take the plunge.
- How much will my mortgage cost each month?
Understanding your monthly payment—including interest, taxes, and insurance—helps you know what you can afford and sets realistic expectations. Your lender will review your income, credit, and savings to give you an estimate.
- What types of mortgage loans do you offer?
There are many mortgage options—fixed-rate, adjustable-rate, government-backed loans like FHA or VA—and each has pros and cons. Your lender can help you find the best fit for your financial situation and plans.
- What credit score do I need?
Your credit score affects the interest rate and loan options you qualify for. Ask what minimum credit score they require and if there are any programs for buyers with lower credit.
- How much will I need for a down payment?
You might have heard you need 20%, but many loans require less—and some even allow zero down. Find out what you need to save and whether you’ll have to pay mortgage insurance.
- What are the closing costs?
Closing costs are fees due when you finalize your mortgage and usually range from 3% to 6% of your loan. Ask what fees you can expect and which are mandatory versus optional.
- Can I lock in my interest rate?
A rate lock guarantees your interest rate won’t change while you’re buying your home, helping you budget better. Ask how long the lock lasts and if the lender will lower your rate if market rates drop before closing.
- What’s the difference between prequalification and preapproval?
Prequalification gives you a rough idea of what you might afford, while preapproval is a more thorough process that verifies your financial info and gives you a firm loan amount. Your lender can advise which step you should take.
- Are there any penalties for paying off my loan early?
Some lenders charge fees if you pay off your mortgage ahead of schedule or refinance. Ask if prepayment penalties apply and how much they might cost.
Getting Ready to Talk to a Lender
Before you meet your mortgage lender, it helps to:
– Check and improve your credit score
– Know your budget
– Learn about loan types
– Get preapproved if you’re ready to buy
Final Thoughts
Asking the right questions helps you understand your mortgage options and feel more confident as you buy your first home. At Avanti Way Financial, we’re here to guide you every step of the way.
Ready to take the next step? Contact us today — let’s find the perfect mortgage for you!
