I am looking to get a home loan to buy a house for myself and I talked to my banker cousin about it a few days ago. He told me that it is very important to know what questions to ask when applying for a home loan. Not all banks are the same, and it is essential to understand as much as possible before moving forward in the housing loan process.
Questions to Ask When Applying for A Mortgage
How will you calculate my loan eligibility?
It is important to understand what exactly the bank is taking into consideration while deciding your eligibility. Generally, banks look at your existing commitments and subtract this amount to arrive at your net available income.
What is the loan application fee?
Don’t forget to ask your bank about all the different fee components like administrative charges, documentation fees, processing fees, application fees, etc. These charges are generally negotiable and can bring down your overall costs. You should always compare all the prices that different banks are offering.
Can you customize the interest rate to suit my needs?
There are mainly 2 types of interest rates (floating interest rate and fixed interest rate). You should always discuss every available option on the interest rates that a bank is providing and work out what is best suited to your risk profile. It is one of the most important questions to ask the bank when applying for a home loan
What is the annual percentage rate on my loan?
The APR (annual percentage rate) takes into consideration not only the interest rate that the lender is charging you but also the other charges and fees that are expressed as a yearly rate. This discloses the actual cost you’ll have to bear.
Also, you can ask your banks questions like what are the pre-payment charges on my loan? What are the balances and checks that the bank has put in place to keep your personal information secure? Whether there will be someone available to answer your queries regarding the loan?
Now you know what questions to ask when applying for a mortgage.
I checked my home loan eligibility through this,
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What questions to ask when applying for a home loan?
Nihal
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2022-01-07T17:41:15+00:00 2022-01-07T18:10:12+00:00Comment
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