If you’re buying a home for sale in Ellicott City or any of the surrounding communities, do you know what to ask your lender before you apply for a mortgage?
What to Ask Your Mortgage Lender Before You Buy a Home in Ellicott City
We always recommend doing your homework before you take out a mortgage – even if it’s not your first time. Make sure you ask your lender:
- What kinds of home loans do you offer?
- What kind of mortgage would you recommend for me?
- What will my closing costs look like?
Lender Question #1: What kinds of home loans do you offer?
The most common types of home mortgages are:
- Fixed-rate and adjustable-rate
- FHA loans
- VA loans
- USDA loans
- Jumbo loans
Not all lenders have the same packages, though, which means you’re doing your due diligence as a buyer if you shop around for one that offers what you need.
Related: Mortgage basics for buyers
Lender Question #2: What kind of mortgage would you recommend for me?
Your lender should be able to answer this question once you’ve filled out an application for preapproval. During the application process, the lender will look at your assets and income, employment, credit score and debt – and it will be able to make recommendations based on your financial profile.
Lender Question #3: What will my closing costs look like?
Closing costs are the fees you have to pay your lender and other parties to run the transaction. Usually, you’ll pay between 3 and 4 percent of the home’s sales price in closing costs. Your lender will let you know what your closing costs might be – and whether any of them are negotiable.
Pro tip: Sometimes fees like attorney fees, commissions and recording costs are negotiable to save you money.
Related: What are closing costs?
Are You Buying a Home in Ellicott City?
If you’re ready to buy a home for sale in Ellicott City, we can help you find the right one.
Call us at 410-465-5822 to tell us what you want from your next home or to schedule a tour in a home you’ve seen online.
Use these links to check out the hottest listings: