Long before you go through your list of smart questions for the mortgage lenders and brokers in Chicago with whom you are considering doing business, it’s important to do your homework. Check customer reviews on Yelp and other review sites. Read their websites. Check the Better Business Bureau website for more reviews and possible complaints. 5 Key Benefits a Mortgage Broker in Chicago Can Give you that a Bank Can’t
When you first talk to mortgage lenders and give them key information about your financial situation and goals, they will be able to narrow down your best options. Be sure to also consult with mortgage brokers. They have access to a greater variety of home loan programs that could make it easier for you to be approved for a mortgage loan.
Once you have a better understanding of mortgage lenders and mortgage brokers, you can ask them these smart questions before you decide to do business with them. After all, buying a house or a condo could be the biggest investment of your life, carrying with a 10-, 20-, or 30-year financial commitment.
1. How much house can I afford?
Talk to a mortgage lender before you talk to a realtor. You need to know how much house you can afford to buy, so you won’t waste time day-dreaming about a house that’s out of your price range. After you are pre-approved for up to a $250,000 mortgage loan, for instance, you can narrow down your search and speed up the homebuying process. FHA Home Loan Limits in Illinois
2. Which kind of loan would be best for my situation?
The four main types of loans are: fixed-rate loans; adjustable-rate loans; interest-only loans, and negative-amortization loans. Your mortgage lender will explain the differences. Should You Both Be Co-Signers on Your Home Loan
3. What is the interest rate of the loan you are recommending?
Interest rates are a fundamental element of any mortgage program, because knowing the rate gives you a point of reference. Based on the type of loan and your credit, mortgage lenders in Chicago will offer you a specific interest rate.
4. What exactly does my monthly mortgage payment include?
It depends on the kind of home loan you have. If you made a substantial down payment of at least 20% of the sale price of the house, you monthly payment includes principal and interest. If your down payment requirement is less than 20%– FHA loans and VA loans require only 3.5% down payment—your monthly house payment will include principal, interest, property taxes, homeowner’s insurance and private mortgage insurance (PMI).
Your mortgage company will place the amount that covers your property taxes and home owner’s insurance into an escrow account and pay those bills from your escrow account when they are due.
As soon as the equity in your home equals 20% of your mortgage loan, you’ll no longer have to make monthly PMI payments.
5. Are there other costs that I’ll have to pay at closing?
You’ve come this far, and you don’t want to be surprised with additional costs when you are ready to sign on the dotted line and receive the keys to your new home. Although there are dozens of types of closing costs, only some may pertain to your closing such as fees for home inspection, appraisal, credit report, and your attorney. Be sure you know exactly what your closing costs will be.
When you talk to an experienced mortgage lender in Chicago, you will learn much more about the homebuying process. Every step of the way, the best mortgage lenders and brokers will answer all your questions, always keep you updated, resolve problems that arise, and reduce the stress of buying a new home.
A and N Mortgage Services Inc, a mortgage broker in Chicago, IL provides you with high-quality home loan programs tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial to