Choosing
mortgage is very difficult, especially if you are new in real estate
business. Keeping
in mind necessities and hurdles faced by novice realtors, Dean Graziosi has
shared a top seven list of things that you should ask to your mortgage lender. Before
we proceed with our topic, it is better to share information about Dean
Graziosi.
Dean
Graziosi is a real estate millionaire. He belongs to a broken family, his
father and mother got divorce when he was just three years old. Dean led first
few years of his childhood with his mother. His mother worked on weekends, and
on two jobs. With such a hard working routine she was able to earn a mere sum
of 90$ a week.
Dean was
two siblings. He wore old and second hand cloths throughout his childhood. His
classmates often teased him on his poor appearance. At the age of 16, after
passing 10th grade Dean left his education uncompleted after suffering from
serious family issues. At the age of 16, he came out as a successful young
entrepreneur
by starting his small-scale business of auto parts.
Amid
business of auto parts, at the age of 18 he performed his first real estate
deal. It was a rundown apartment building. He purchased that building,
renovated and then sold the building at a fair profit. Since then, Dean never
looked back. After successfully completing journey of more than two decades,
Dean is
willing and determined to share his knowledge with novice and
aspirants.
Following
is a given a list of top ten things that you should ask your mortgage lender.
1- What Kind of Mortgages Do You
Offer?
This is
the first and foremost questions that you must ask your mortgage lender. In
order to get right kind of mortgage, it is necessary that you must know all
basics of mortgage options available to you.
Hint: consider your present and
future requirements before finalizing a mortgage deal.
2- What is Your Interest and
Annual Percentage Rate?
Once you
finalize your choice for mortgage loan, next step is to ask for percentage and
interest rate. Interest rate and annual percentage rate will decide how much
you are going to pay as a borrower.
Hint: To calculate annual percentage
rate, you must understand adjustment frequency, maximum adjustment frequency
means maximum annual percentage rate.
3- What Are Your Discount Prices
and Originate Fees?
If you
are planning to stay for a long time in the house, you must ask for discount
prices. Originate fees is administrative charge that covers processing of your
application.
4- What Are Your Closing Costs?
There
might be hidden charges associated with closing of the loan. Ask for a "good
faith estimate" of your loan's closing cost. Your lender is bound to issue
you a "good faith estimate" within three days of receiving your
application for loan.
5- What is Your Minimum Required
Down Payment?
Amount
of the down payment will help you decide about rate and term of your loan.
6- Is There a Prepayment Penalty:
It is
strange, but most lenders will charge you a penalty, usually equal to six
months of interest. It is better to ask your lender for any such restriction.
7- What Kind of Documents Are
Needed?
There
are some important documents that you will need like your name, contact
information, bio data etc. These documents are used as a proof and guarantee of
your loan.
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