People looking to purchase a home in Arizona, an existing loan would need to obtain a home loan from a reputable lender. Here is a list of the top five questions to ask your mortgage broker while applying for a home loan in today’s market to expedite the process using mortgage companies in Arizona.
The most critical question a home buyer would ask the mortgage broker to enquire Mesa home loans before moving on to the next four is how much house can they afford? Don’t make the mistake of starting the house-hunting process without first determining how much debt you can afford. In general, you can choose to buy a home that costs between 1.5 and 2.5 times your annual salary. A home buyer with a family income of approximately $60,000 can afford a $150,000 to $210,000 home, as an example. That is often easier said than done because your target area does not have homes in that price range, so you may need to look at townhomes and condos, which are usually less costly than a traditional detached home. You can have a higher debt ratio depending on the mortgage and interest rate you receive, but your overall debt (mortgage payments, credit card payments, and other debt) should not exceed 30-40 percent of your gross monthly income using St.george home loan.
The next issue should be about the types of loans you are eligible for. If you’re a first-time buyer, there are several loan options open to you, such as FHA loans or first-time home buyer grants. Your realtor or mortgage broker will help you figure out what’s out there. VA loans and traditional loans are also available, all with flexible, balloon, or fixed-rate mortgages. When choosing the right loan, think about how long you expect to remain in the house and your potential career goals.
If you’ve decided on the type of loan and the amount you can borrow, and you’ve determined the interest rate, a reasonable question to ask is how long you can lock in the rate. Most lenders offer a 30-day interest rate lock, but some may offer a 60- or 90-day lock for a fee. You’ll want to make sure you’ve given the lender ample time to process all of your mortgage paperwork and documentation before the locked interest rate expires.
Another critical question is how much will the closing costs be? This may be different for different locations. For example, in some states, who pays for title insurance or a home warranty package can differ. Since you cannot know the exact sum before the loan ends, your representative will be able to give you more details about what to expect. It will also be determined by the number of points you pay on your loan (a point is 1 percent of your mortgage loan amount).
The last issue is divided into two sections. First and foremost, how long would the approval process take? After reviewing your records, the lender should be able to give you a reasonably accurate estimate of when that date will be. Second, inquire as to when the final papers will be sent to the title company. This is important to know because you’ll need to ensure that they’ll have it there at least three days before closing to provide time for both buyers and sellers to sign paperwork and for the lender to give final approval. If the lender waits until the final closing date to do so, the title company would be unable to take the appropriate measures to ensure that you close on time.
Make the process even easier now that you know what questions to ask by working with a reputable mortgage broker like the Mortgage Brothers Team. The Mortgage Brothers Team’s Arizona mortgage lenders experts will search for the best loan rates and let you know what home loan options are available for your situation. Their employees are dedicated to delivering the best customer support possible.
Compare the different types of reverse mortgage lenders in Arizona before you finalize one.