If you’re getting ready to sign one of the most important documents of your life – your mortgage – first ask these questions.
The mortgage you take on is going to shape your life for at least a few years to come. Even if you plan to flip the house and sell it quickly, you’re going to be responsible for those dues until you can find a seller. Whatever your anticipated timeline in your house, it’s important to find home financing that works for you today and will continue to work for years to come. To help you do just that, we want to suggest two critical questions to ask your mortgage lender before you sign on the dotted line.
Is there a prepayment penalty?
The hope is that your finances will only continue to get healthier in the years to come, right? So you might be able to make extra payments on your mortgage down the road, paying it off faster. It would be devastating to think you’re on the verge of being debt-free, only to learn there are prepayment penalties associated with your loan! If you think there’s even a small chance you’ll pay off your mortgage early, you should look for a loan without prepayment fees.
What’s the APR?
You’ve already asked about your interest rate, so you might think that this question is unnecessary. Actually, though, it’s critical. Your APR (annual percentage rate) factors in other costs of your loan, like loan origination fees and discount points. Even if you’ve got a low-interest rate, you could be surprised by the actual cost of your loan unless you ask about your APR.
Finding the right mortgage will require a lot of involvement from you, and you might be worn out by the time you get to closing. That’s where our escrow services come in. Let us help make the last step of the home buying process easy for you; contact Brighton Escrow in Hermosa Beach, California today.