You’ve found the home of your dreams, and you’re ready to buy it. It’s a very exciting time – but also one that can be terribly confusing and nerve-racking. One way to calm some of the nerves is to make sure you cover all your bases. There are many questions to ask your home loan officer before buying a house.
If you are working with a trusted, reliable home loan officer like Seth Wilcock, he most certainly will answer them before you even ask, as he’s heard them from clients many times before. However, every case is unique, so you might very well have unusual questions.
Don’t be afraid to ask them. It’s important to get all the answers you need both for your financial future and to make sure you are happy in your new home.
Questions to Ask Your Home Loan Officer Before Buying a House
Following are some of the most important or most common questions to ask your home loan officer before buying a house.
1. Is it a fixed interest rate or will it fluctuate?
Now, this will most certainly be discussed without you even asking. As this is being discussed, however, make sure you make note of the factors involved in the interest rate. While many people prefer a fixed rate, it’s very possible that a fluctuating rate will be better for you. So talk with your loan officer – as well as the people who will be moving into the house with you such as your spouse – to make sure you make the best decisions.
2. What are the best ways to save money in the long run?
As you’re thinking about the questions to ask your home loan officer before buying a house, one of you will inevitably end up talking about how to save money.
One of the best ways to save money during the lifetime of the loan, for example, is to make one extra payment per year. Another is to make payments every two weeks instead of once a month, which is a neat trick; because of our tricky calendar year, you’ll end up paying more than 12 payments per year without even realizing it.
Also, take advantage of ways to cut down on the principal of the house. Be sure to ask your loan officer how to do so.
3. Will I be penalized if I pay off the loan early?
This is something that not many new homebuyers realize, but there are some loans that penalize you for paying it off too early – for a variety of legitimate reasons. However, do talk with your loan officer to see if that is happening in your case, as paying off your loan early could actually save you money otherwise.
4. What are the extras I will have to pay?
Ask about the lender’s fees, any fees you will have to negotiate with the seller, yearly taxes, and many more similar items. Be sure to go through your loan documents carefully to make sure you understand all of these fees that will come up during the closing or throughout the lifetime of the loan.
Talk with Seth Wilcock
If you have specific questions regarding your personal financial situation, don’t hesitate to reach out to Seth Wilcock and the Wilcock Team of NOVA Home Loans. We will be happy to work with you to make sure you know all of the most important questions to ask before finalizing that deal.
In the meantime, congratulations on finding your dream home! When you work with one of our trusted loan officers, we are confident you will be happy in your home for years to come.