When shopping for a mortgage, no one likes surprises. In the loan process, knowledge is power. Being an informed shopper helps you make the right decisions for your financial situation and particular needs. It’s always better to be inquisitive than to be uninformed. But what specifically should you ask your mortgage broker? Here’s our list of questions you should ask when exploring mortgage brokers in Rockville MD.
Which Type of Loan Fits Your Needs the Best?
The reason you choose to work with a mortgage broker in the first place is so they can use their knowledge to help you navigate the complexities of mortgage shopping. An expert mortgage broker should be able to survey your finances and buying needs, and paint a portrait of which loan type will benefit you the most. Would a conventional, 30-year fixed-rate loan make the most sense? Perhaps you can take on larger monthly payments and would benefit from a 15-year fixed-rate loan instead. Are you seeking a loan for an investment property instead of a personal home? It’s the job of your mortgage broker to intake all of this information and help you determine which loan type meets your needs.
What is My Down Payment? Do I Qualify for Any Assistance?
Down payments can be one of the biggest barriers to entry for many prospective home buyers. Having a clear understanding of your down payment amount from mortgage brokers in Rockville MD is very important. Certain lenders, for instance, require a minimum 20% down payment on loans. However, others may offer as low as 3%, or under certain circumstances, none at all. Your down payment amount can be dependant on what kind of loan you choose. For instance, FHA loans can help home buyers acquire a loan with a low down payment. VA loans, available only to veterans or active-duty military personnel, usually require nothing down.
Even if you don’t qualify for non-conventional loans, there may be state and local programs that offer down payment assistance for home buyers. Always discuss with a prospective broker what down payment options you have.
What Are Your Brokerage Fees?
Mortgage brokers can help you save a huge amount of money in the long-term by negotiating lower rates with lenders on your behalf, rates you may n0t have had access to previously. However, there of course fees associated with this service. Fees range from broker to broker, but you can typically expect to pay 1-2% of your loan amount to the broker. Be sure to establish a transparent line of communication about how much these fees are so you’re not surprised by the bill delivered to you at the end.
What Are the Other Fees You Should Be Aware of?
Beyond brokerage fees, there are other fees you’ll want clarification on from mortgage brokers in Rockville MD. Home buying can come with a lot of fees you may not consider at first. Appraisals, closing costs, home inspection, credit reports, and escrow, just to name a few. A reputable mortgage broker should have a good sense of which fees you’ll need to account for.
What to Look for in Your Mortgage Brokers in Rockville MD?
A dedicated mortgage broker can answer your questions and guide you through the challenging process from start to finish. It’s important to prioritize expertise, experience, and feedback from clients. For over a decade, Federal Hill Mortgage has helped hundreds of families across Maryland finance the homes of their dreams. To get started, apply today.