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Don’t Forget to Ask These 5 Mortgage Questions

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The process of getting a mortgage can be arduous, to say the least. Collecting documents, meeting with your loan officer and coming up with closing fees can take a lot of time and effort. But, the end result—a new home for you and your family—makes it all worth it!

 

The last thing you’d want after all that hard work is to be surprised by something you didn’t know.

 

That’s why Mountain America Credit Union talked with our mortgage lending group to help you more fully prepare. This way, you’ll get the keys to your new home even sooner!

 

Question #1
How long will my prequalification and locked-in interest rate last?
Many times, people lock in their interest rate or take the time to get prequalified because they believe they are days away from making an offer on a property and forget to ask how long this prequalification will last. Make sure you understand exactly when these qualifications expire and what the process is to reinstate them after that date. 

 

Question #2
Will the agreed-upon repairs pass inspection in time for closing?
This is a two-tiered question—1. Will the repairs be completed in time? And, 2. Will the inspector be able to check them in time? This additional inspection is not required for all types of repairs, but asking the question can save you from getting down to the wire on repairs that still need to be approved.

 

Question #3
When will I get the keys?
The keys to your new property won’t be transferred until the seller has received their funds. Keep this in mind when you schedule your closing on a Friday expecting to move in over the weekend. The seller may not be scheduled to sign until the following Monday or Tuesday—so it is more likely you won’t get the keys until then.

 

Question #4
My escrow account is included in my mortgage. Will the escrow portion always stay the same?
Escrow payments are reviewed annually and adjusted to meet the needs of insurance and tax payments. If you see an increase in your payment, it’s most likely due to an increase in your assessed property value and, subsequently, your taxes.

 

Question #5
Are there any prepayment penalties on my mortgage?
It sounds surprising but some policies can assess a penalty for paying off a mortgage early. While prepayment penalties are largely extinct nowadays, some lenders still use them. Ask your lender to walk through the potential fees on your mortgage policy. If there is a prepayment penalty, it’s probably a good idea to find another mortgage company.

 

Finding the right mortgage, and the right home, is possible! Check with Mountain America before deciding on your lender. We have many types of mortgages and knowledgeable home loan experts to make sure you get the loan that’s right for you. Contact us today!

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