Questions to ask your mortgage lender

A mortgage is likely the longest term financial relationship that you can expect to have. So making sure you understand your mortgage is critical to your financial health - just like knowing your cholesterol level or your cardio fitness. Whether you secured your mortgage through a financial institution or a broker, if you do not really understand how your mortgage works then keep asking questions until you do. At The Credit Union we are always here to answer any of your questions – even if your mortgage is not with us.

To get you started, here is a list of questions you should know the answers to. If you don’t, it’s time to get some more information.

• What interest rate are you paying? Ask for the annual percentage rate (APR) including fees.
• Is the interest rate locked in or is it variable?
• Is there a prepayment penalty?
• When will it be paid-off? Is there any way I can shorten the length of time before it is paid-off?
• How much interest are you paying? How can you lessen it?

What do you need to ask if you are applying for a mortgage?
You need to ask the questions above and:

• How are the fees and closing costs calculated?
• What is the minimum down payment required for the loan?
• What are the qualifying guidelines for the loan?
• What documents will you need to provide?
• How long will it take to process the loan?
• What could delay approval of the loan?

Take the answers and compare between mortgage lenders. If you are not sure how to do that, come in or give us a call – we’ll show you how.