In the Lone Star State, the lending organization representative who will process your loan application is generally called the mortgage originator. This individual will be your main point of contact, providing all of the information you need to make an informed decision.
During your first meeting with your mortgage loan originator in Flower Mound, TX, or any neighboring community such as primeres.com/flowermound, here are the most significant questions you should ask:
What Is the Amortization Schedule?
The most important numbers borrowers usually want to know above all is the loanable amount, interest rate, and monthly payment. However, the digits representing them can be misleading when you don’t know the math. You can ask about the computation, but average people often miscalculate.
To get a better idea on how much how much interest you would pay over time, the amortization schedule paints the clearest picture. This is a visual representation of debt reduction with regular payments.
In fixed-rate loans, it would show that your monthly payments remain the same throughout the term, but the bulk of the initial ones go toward the interest. If you’re refinancing or planning to refinance in the future, the amortization schedule is a useful tool to ultimately save on interest.
What Are the Options to Lower the Interest?
If you’re unhappy with the mortgage rate you received, look for ways to decrease it. The best solution is to improve your credentials, like increasing your credit score or paying a larger down payment. A popular alternative is to buy discount points, which is a means of prepaying the interest.
Lenders have different policies and may offer unconventional methods to lower mortgage rates. Explore every avenue first to get the most favorable deal.
How Much Would the Closing Costs Be?
Closing costs are fees paid to all parties (internal and external) responsible for processing your mortgage. Ask your mortgage originator about the list of charges to set your expectations. Normally, you should get your loan estimate, which includes closing costs, within three business days upon the receipt of your application.
Is There a Penalty for Prepayment?
Not all lenders allow borrowers to pay in between due dates to decrease the principal balance. Inquire about the possibility of making extra payments, and any penalty you may face. Without any prepayment consequence, you can build equity on your property faster, and refinance without additional charges.
A mortgage is perhaps the biggest debt you might ever acquire in your life. Be as inquisitive as possible to determine the loan’s affordability, assess your finances, and avoid undesirable implications of your actions along the way.