5 Questions to ask your Mortgage Lender

by Jurnee Luye

A mortgage lender can be an incredibly important ally in your home-buying process. The right one—one that takes the time to explain everything clearly and thoroughly, along with offering you the best mortgage for your situation—will act as a true partner in helping you buy or refinance your next home. But if you're like most people, when it comes to choosing between competing lenders, it's hard to know where exactly to start. If this sounds like you, don't worry: We've got answers! Here are five questions (and answers!) every potential buyer should ask their mortgage lender (before they sign on the dotted line):

What are the closing costs?

Closing costs are fees paid to your lender, real estate agent and others. The amount of closing costs depends on the type of loan you get and the price of your home. Closing costs can be paid at closing or paid in advance; they usually include title insurance, recording fees, appraisal fees and attorney's fees related to legal documents such as deeds or mortgages.

Do I need title insurance?

Title insurance is a policy that protects you from any problems with the title to your property. If there is a problem with the title and you are not aware of it, you may be responsible for paying for it. This can be expensive—title insurance can range from $500 to thousands of dollars per year depending on how much coverage you want and whether or not it's required by lenders.

Some lenders will cover title as part of their closing costs but others won't; so make sure to ask before signing anything.

What's the difference between a fixed and an adjustable rate mortgage?

A fixed-rate mortgage is one in which the interest rate is set at the time of loan application, usually for a specific term (e.g., 10 years). This type of loan offers less risk than an adjustable rate mortgage because your monthly payments will stay relatively constant throughout the term, even if rates change.

An adjustable rate mortgage (ARMs) adjusts periodically based on market conditions and consumer confidence levels—and often without notice to borrowers. When this happens, your monthly payment may increase or decrease by several hundred dollars per year depending on how much you owe on your loan balance each month; however, there are provisions that allow borrowers with low incomes who qualify for them to qualify for lower monthly payments so long as these loans were originated before December 31st 2008—and even after that date if certain conditions are met such as having been approved before December 31st 2007 but didn't close until after January 1st 2008 during which time existing mortgages could still be refinanced under existing rules instead being forced into new terms like those offered today.

Should I buy points to lower my interest rate?

Points are a way to lower your interest rate. When you buy a mortgage, the lender may offer you points in exchange for their services. The value of those points is usually reflected in the amount that you pay per month on your loan—so if you're paying $1,000 per month and want a 4% interest rate, that means that the lender will give you $400 back when all is said and done (4% x 1k).

Points can be worth hundreds or even thousands of dollars if used properly; however, they can also cost more than double what they're worth if misused or abused. For example: let's say someone had an excellent credit score but didn't want any additional risk associated with buying mortgage loans through them; so instead they bought some high-yield savings bonds instead! Now imagine how many of these savings bonds would need sold before it even started making sense financially speaking? And then think about how much money would have been lost due to people not understanding how interest rates work around here...

Can you help me figure out how much I can afford to pay for my home?

The first question you should ask your mortgage lender is:

Can you help me figure out how much I can afford to pay for my home?

The answer to this question depends on several factors, including:

Your income. You'll want to consider the amount of money that would be left over after paying all housing expenses and other costs like car payments, insurance and other monthly bills.

Your credit score. A low credit score can make it difficult for you to qualify for a mortgage loan because lenders will consider it risky or risky enough that they won't give you the money unless there's some sort of guarantee from another source (like an inheritance). In addition, if someone takes out a large loan in advance without having paid off any existing debt first—say by buying stocks before paying off their debts—then they could end up at risk when trying to sell those stocks later down the road because no one wants them anymore!

The questions and answers in this article will help you decide which mortgage lender is right for you.

If you’ve got any questions about your mortgage, call me or visit my website. I can help you figure out how much house you can afford, what to ask your lender about closing costs and how long it will take for your money to go from being loaned out to becoming yours. With all of these things in mind, hopefully this article has helped answer some important questions about mortgages.

- The Jurnee Home Team