Questions to Ask Your Mortgage Lender from Michigan

What is the average processing time?

The best mortgage lenders in Michigan take around 30-40 days to close the purchase loans. Refinance is often faster because appraisal might not be required.

How much can I borrow?

A lender uses your credit reports and other information to tell you how much amount you can borrow for your home. First-time buyers and military veterans can enjoy the benefit of government-sponsored mortgage programs. Get details of these programs from your lender.

What are the total costs?

For successful approval of the loan, you have to pay lender fees, taxes, and recording fees. The costs also include fees of third-party vendors to get appraisals, the title policy, credit reports, escrow, and pest inspection reports. Your broker will provide the Loan Estimate, with an estimate all these expenses.

How much do I have to pay upfront?

The lenders commonly ask for 20 percent as the down payment, though the amount can vary greatly. Some schemes allow you to pay just 3 percent. Get all the details beforehand.

What is the annual percentage rate?

Apart from the interest rate, you also need to ask about the annual percentage rate (APR) of the loan. It is calculated by dividing the interest rate and other loan fees by the loan’s term. The calculations may vary by the broker you have chosen.

You can note down your own set of questions to get a clear picture of loan for your home. Check this link if you are searching for the best mortgage companies in Florida: https://www.sonicloans.com/.