So, you know how much you can borrow, and how much you can afford to repay. But when you’re shopping around for your mortgage, there are other important questions that must be asked before you sign on the dotted line.
- If you’re opting for a low lnterest mortgage, does the initial interest rate revert to a much higher rate after a set period?
- Does your loan offer other competitive features such as the facility to make extra repayments?
- Are there any additional fees? Can your lender provide a full, written quote for the loan stating all the upfront and ongoing costs so there are no surprises after settlement?
- Can your home loan be split into variable and fixed rate mortgage?
- What other products can be linked to your loan such as credit cards facilities and ATM cards?
- How much is the loan establishment fee and what does it cover? If you’re opting for a lender that waives application fees, ask if the establishment fee merely deferred?
- Will the lender give pre-approval with no upfront fees?
- Have you used a mortgage calculator to view comparison rates for similar products?
- How long will your potential lender take to process your mortgage loan application?
- What documentation do you have to provide?
- What are the qualifying guidelines for the particular loan you are applying for and do you meet them?
- Can you get a refund of the loan application fee if you change your mind or if your application is rejected?
Last but not least, be sure to compare online at comparison sites such as RateCity to be sure you’re getting the best mortgage for your needs.
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