There are a few things to ask your lender when buying a home in Massachusetts. Home ownership is a significant thing for any Massachusetts family. This is something that requires a great deal of thought and preparation. For a new home buyer, the process can be quite confusing, especially if they don’t understand the ins and outs of the mortgage process. New home buyers should sit down with a qualified representative of the lending company and ask them the following questions:
1. How long does it take a loan to be approved? Many new home buyers are eager to quickly make an offer and get the house they want. In reality, the process takes time and will require the approval of the loan officer. The loan department of a bank can be quite busy and, depending on a wide range of factors, the approval process can take anywhere from a week to a few months. Each bank or lending organization is different. Potential home buyers need to get the best possible estimate about the completion of the approval process.
2. Is this the best loan for me? Today, there are many types of mortgages available with a wide range of details and modifications. One type of mortgage could be good for someone else, just not for you, even though the houses in the neighborhood are identical. Ask the lender to provide all the necessary information about the types of loans, including rules and qualifications of each. A mortgage loan has pros and cons and it is important to understand them.
3. How much are the closing costs? This is one of the most important questions you can ask your lender. There are many fees that can be added to a mortgage and there are a variety of closing costs that home buyers need to pay during the closure of the loan. This could depend on the provisions of the loan, such as title fees, insurance fees, attorney’s fees, appraisal feels, application fees and loan origination fees. Ask the lender to provide an accurate calculation of the closing costs.
4. Is there a guarantee to the “good faith estimate”? A good faith estimate is an estimation of all costs associated with the home loan, including the closing costs. The local authority often requires lenders to provide home buyers with such an estimate, shortly after the loan is applied. If the lender is reputable and honest, home buyers shouldn’t have problem obtaining the estimate. If the lender can’t provide the estimation, then it is probably a good idea to find another lender.
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