06 Dec 5 Questions to Ask Your Mortgage Lender
Our City Creek Mortgage team prides itself on our top-quality customer service. We work hard to make sure our clients feel heard, respected, and advocated for! At City Creek Mortgage, you aren’t just another number. You are a valued client with unique circumstances and goals.
No matter which lender you choose, there are four essential questions you should ask before you determine who you can trust to help you through this investment process.
What kind of mortgage should I consider?
A quality advisor should give you the pros and cons of each type of mortgage available to you and help you thoughtfully weigh each option. Ask to see each option in writing so you can take your time looking over and comparing them.
Always take time to ask questions. If you aren’t sure about a number or fee, ask your advisor to explain it to you. Knowledge is power! The more you know, the better you’ll feel about your mortgage in the long term.
Will I have to pay mortgage insurance?
The short answer is if you put less than 20% down on your home purchase, the answer is likely yes. Ask if your mortgage insurance is worked into the cost of your monthly mortgage payment. You’ll want to know how much it will cost upfront and if it’s an ongoing charge.
How much should I save for a down payment?
This answer will vary depending on the type of mortgage for which you qualify. It makes good common sense to know that no matter how much your home costs, the more you can put down, the less you’re going to pay over time.
Not so long ago, consumers typically paid 20% of the home’s cost as a down payment; however, if that amount feels impossible to you, it’s not out of the question that you’ll be able to find a mortgage that requires less as a down payment.
There are considerations to be made for every payment option. Be sure you ask about all your down payment options upfront.
What will my monthly mortgage payment be?
The answer to this question is everything, right? You must know how much house you can afford without its becoming an added stress or burden.
There are several factors to consider before you determine how much you can afford for a mortgage payment every month. In this situation, it’s never a bad idea to sharpen your pencil and do some old-fashioned budgeting.
Write down how much you earn (and bring home) every month. Then, based on the past four to six months, write down the amount of each of your standard monthly expenses. Those are the bills that are unlikely to change from month to month, like rent, insurance, credit card payments, streaming/internet subscriptions, cell phone charges, garbage pickup, and the amount you set aside each month for emergencies.
Then, get an average amount for those monthly items that change from month to month, like utilities, groceries, and gas/transportation costs.
Don’t forget to add approximations on miscellaneous items like dinner out, your morning coffee stop, or the occasional shopping trip. Those items add up.
Once you have a clear idea of approximately how much you’re spending each month versus how much you’re earning, you’ll have a better idea of how much you can afford for a mortgage payment.
Your mortgage will replace your rent; however, you’ll need to make room in your budget to cover unexpected homeowner surprises like sewage backups, roof repair, or air conditioning/heating repair.
Don’t push yourself so tightly in your budget that you’re miserable every month. No house is worth feeling anxiety, pressure, and stress trying to pay for it.
How often will you communicate with me during closing?
Effective communication should be a cornerstone for your advisor. You’ll need to provide your advisor with all the ways you prefer to stay in touch, and you should expect to hear from them consistently until well after closing.
You should also ask how long it takes for the advisor to respond to emails or messages. That way, fair expectations are discussed at the beginning of the lending process.
City Creek Mortgage is the most trusted, respected, and loved mortgage company in Utah for a reason. Our City Creek Mortgage team wants to do business with you!
You matter. Your investments matter. You deserve to be heard. At City Creek Mortgage, our team listens to your goals. Then, we work together to figure out the best way to help you achieve those goals.
Our team is intelligent, talented, professional, and friendly. You won’t find a better mortgage team. We guarantee it! Contact us today for an instant rate quote. You won’t regret it.