Most Frequently Asked Questions about Mortgage Loans

1. Most Frequently Asked Questions about Mortgage Loans Although Lendingcapital.net does not offer residential mortgages (Commercial-Investment Property Only)-we want to help individuals understand what it takes and make it as easy as possible when buying a home, after all itis likely one of the biggest purchases of an individual’s life. This naturally raises many questions in the person’s mind. Asking the tough questions and even the easy questions is what’s going to help you make your strongest investment. With questions, you can quickly assess a lender, or a loan product, based solely on what you ask and the answers you get back. While many buyers skip this step, taking the extra time to comparison shop and ask questions could save you a major amount of money over the life of your mortgage. Here are the most frequently asked questions about mortgage loans: Which Type of Loan Is Best for Me? There are a variety of loan options available in the market, and you’ll need to discuss them with your mortgage lender before making a decision. One of the main decisions you’ll need to make is whether an adjustable-rate mortgage or fixed-rate mortgage better suits your situation and needs. Besides the rate type, you will also need to discuss the effect different loan terms will have on your larger financial picture with your lender. What Documents are Required? You need to be prepared to fulfill documentation requests from several members of a lending team during the loan process. The documents required will vary depending on the loan for which you’re applying; however, the most common documents include pay stubs, bank statements, and tax returns. How does the Appraisal Process Work? Lenders will require a property appraisal as an objective way to estimate the fair market value of a property for both a home purchase loan and mortgage refinance. Typically, lenders maintain a list of reliable and reputable professional appraisers. Lenders will assign one of these appraisers to review the property. Lenders generally save the borrower time by arranging for the appraiser on the borrower’s behalf. What Costs are Involved? You will be required to pay some costs up-front before loan closing. These may include appraisal fees, credit report fees, and application fees. You should discuss all these costs

2. with your mortgage banker to determine how much money will be required before the loan being approved. You’ll also want to discuss any funds that will be required to complete the loan closing. When Will I Get a Loan Estimate (LE)? A Loan Estimate is a three-page document that a lender must provide within three days of receiving your application. It will include estimated interest, estimated monthly payment, and estimated closing cost. It is important to bear in mind that a Loan Estimate is just an estimate. The actual costs of your loan may be slightly higher or lower. https://lendingcapital.net