Questions to Ask Before You Sign the Mortgage Papers

One of the most time consuming process that almost all individuals undergo is the process of buying a home. Before you even initiate the process of searching home, there is another important task waiting for you. This is the task of getting the best mortgage rates in Mississauga so that you can get easy finance for your dream project. There are chances that in order to do so, you have to spend hours with the mortgage brokers to understand the inside out of whole lending process.

Once you have sorted out which broker you want to deal with, you have to explain your current financial situation in very specific terms including your annual salary, other major expenses and the amount you have planned to offer as the down payment. After the initial credit score check, the lender will give you a variety of options for which you are qualified for. Now it is up to you to select the best one out of many. For this, there are certain questions you should ask the broker as well as money lender before signing any documents. Let us find out what all those questions are:

#1 What is going to be the interest rates on this loan?

Lender’s loan estimate is the most important aspect of any mortgage loan that you apply for. Usually, with this kind of estimate, you get to know about the interest rate that is applicable on the loan and the lender’s fees. It also includes the yearly percentage rate that involves interest rates, fees as well as other charges.

#2 What would be the closing cost?

As a borrower, you have to pay a certain fees to the various parties that were involved in the whole mortgage process such as the lender and title companies. The lender has to provide you with a written and full documented estimate of all these costs within 3 days of getting the loan application.

#3 What is the minimum down payment of the loan?

Don’t forget to ask about the down payment of the loan. Usually when you put a big amount as down payment, the chances of getting the best mortgage rates in Mississauga along with better terms and conditions, increases. According to the experts, when the down payment is less than 20 per cent of the total loan amount, it increases the monthly installments.

Apart from all this, there are several other questions, including kind of documents required, time required for the whole process, that you should ask your broker or lender. In case, they don’t offer you satisfactory answers, then try contacting professionals of The Mortgage Division who will provide you the detailed answers as well as numerous mortgage options.