What to Ask Your Mortgage Company

Everyone wants to get their mortgage done right now.  Rates are really low and home values are climbing.  Whether you currently own a home and want to refinance or are looking to buy a new home, there is a huge demand on homes right now.

When you call your mortgage company or fill out the application online, here are a few questions to keep in mind, and to ask your mortgage company.

When can I lock the interest rate?

Locking the interest rate is a huge step.  Your interest rate is the percentage you will pay every month on your mortgage for the life of the agreement, so you need it to be as low as possible.  That’s why you need a real mortgage expert to help you hit the right sweet spot for your interest rate.  Rates change constantly, so having a professional that knows how to read the markets and lock at the right time is key.

Is there a prepayment cost on the loan?

Some mortgage companies will build in a prepayment penalty (try saying that 5 times fast) that will actually penalize you for paying the loan back early.  The Home Loan Expert, Ryan Kelley doesn’t agree with these penalties, but you always need to make sure you know what’s in the agreement.  Many people like to pay extra on their mortgage every month, saving themselves interest money in the long run.

What paperwork do I need?

Before you apply, you can get together the documents we need to have.  That way, we can get you through the process more quickly and get you in your dream home.  If it’s a document that has anything to do with you financially, we will probably need it.  Here’s a partial list:

  • Paycheck Stubs
  • W-2
  • Bank Documents
  • Investment Documents
  • Tax Documents
  • Profit Statements (Only if self-employed)
  • Proof of income from rental properties
  • Proof that a gift is not a loan
  • 12 months of canceled rent checks and bank statements
  • Divorce decree
  • Proof of age of children in child support is involved
  • Bankruptcy discharge paperwork

Get all of this together and we’ll be able to get your mortgage done quickly and efficiently.

Should I get pre-approved before I shop?

Absolutely.  A pre-approval letter from The Home Loan Expert, Ryan Kelley gives you a solid base to make a real offer on your home.  It separates you from the less serious buyers.  And it tells you what your budget is, saving you time on what homes you look at.

What will my interest rate be?

You should really ask for the lender’s loan estimate.  That will break down all of the fees and interest for the home by what the payment is.  That way you can see what you’re paying for each item.  Look for the APR, or annual percentage rate.  That includes interest rate, points, fees and other charges you’ll pay.

Get Started

Mortgage rates are at historic lows, right now.  This is the most opportune time for you to get a refinance or buy a new home.  Take advantage of lower mortgage rates to refinance and save money. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 and Nashville at (615) 810-8555.  You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Don’t forget to follow @TheHomeLoanEx on Twitter for breaking mortgage news and knowledge.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?


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