Key Inquiries to Make to Your CrossCountry Mortgage Advisor

When embarking on the journey to apply for a housing loan, your CrossCountry Mortgage Advisor will ensure the basic elements are covered with you. These typically encompass your interest rate and the loan solutions for which you qualify, among other details. However, there are several crucial inquiries you could make to your lender to seek in-depth understanding on certain matters.

What will be my interest rate? Currently, interest rates are at their lowest in over half a century, which is advantageous for potential homeowners and those considering refinancing for a lower rate. However, your specific rate cannot be guaranteed until your financial circumstances have been comprehensively assessed. Factors influencing your rate include:

• Credit rating
• Property type and geographic location
• Loan duration
• Interest rate category (fixed or adjustable)
• Home value and loan sum

What loan alternatives do I have? Your financial standing might make you eligible for a variety of loans, each with unique minimum down payment requirements and credit score criteria. Your mortgage can also vary based on the rate type (fixed or adjustable). Request your advisor to detail all possible options and elucidate the long-term implications of each. If your situation deviates from traditional mortgage criteria, your loan possibilities might alter. For instance, for self-employed individuals, bank statements rather than tax returns would be scrutinized. (CrossCountry Mortgage provides several non-standard loan solutions to assist clients in unconventional situations.)

Will I be obligated to pay Mortgage Insurance (MI)? Should you make a down payment less than 20% of the home's purchase price, you will likely be required to pay Mortgage Insurance. MI is also generally obligatory on FHA and USDA* loans. This helps to counterbalance the risk the lender would typically bear in a low down payment transaction.

What other expenses will I incur at closing? Closing costs fluctuate between loans as numerous fees are determined by the exact loan amount. The larger the borrowed sum, the greater your costs. Generally, closing costs comprise 2-5% of the home's sale price. While they're termed "closing costs," certain fees like home inspections and appraisals might need to be paid during the loan process. Even though your estimated closing costs will appear in the loan estimate, the fees mentioned may vary throughout the process.

Is it mandatory for my partner to be on the mortgage? In brief, no. If your spouse co-borrows on a mortgage, it could enhance your qualification chances, provided they possess a favorable credit score, stable employment history, and income. However, if one spouse has credit complications or intricate income, it could negatively impact your mortgage application. In such scenarios, it might be beneficial to have a single borrower on the loan. Both spouses may still need their credit reviewed, so this should be discussed with your Mortgage Advisor. If you decide to modify this arrangement later, a non-borrowing spouse can be added to the home's title, or both spouses could refinance the home, allowing for a new joint application on the mortgage.

Do you have more queries for us? Reach out to a local CrossCountry Mortgage Advisor today for a complimentary consultation!

*Certain state and county maximum loan amount restrictions may apply.