Questions To Ask When Applying For A Mortgage In Scottsdale

What are the different types of loans available?

Buyers want options. They want to know mortgage lending is not a “one size fits all” endeavor. Every prospective buyer is different and it is important to find the best program and options to fit them.

Your broker should be well versed in all different types of loans and should have the expertise in knowing what type of loan fits each clients budget, lifestyle, and wants and needs the best.

Do I need to make a down payment and if so how much would it be?

In most cases, lenders will typically require a prospective buyer to put down a certain percentage as a sign of good faith. This amount varies pending on the type of the loan. This is something that can be discussed further with your broker. 

Additionally, most down payments will not exceed 20% of the purchase price of the home and can depending on the program be as little as 3%.

How Do You Determine Interest Rates?

There are many different variables that can determine interest rates. The size of the loan, the credit worthiness of the buyer, even the LTV or, (loan to value) can have an effect on the interest rate. Your broker can give you more specific information on rates.

What is the difference between my interest rate and my APR?

The APR reflects the interest rate, any points you may have paid, or lender or broker fees rolled into the loan. For this reason the APR can be slightly higher. The interest rate is the cost of money borrowed as expressed as a percentage of the monies borrowed. These are all questions your broker can answer. 

How Much will my mortgage cost in total?

This is an excellent question. Ideally, your broker will provide you with a GFE or a Good Faith Estimate. This of course is just an estimate and will vary slightly from the TIL or Truth In Lending statement. This will give you a breakdown of all your costs associated with the loan, your interest rate, APR, term of the loan, and any other pertinent information you will need. 

What Is The Deadline To Fund The Loan?

According to Redfin statistics, the majority of homes in Scottsdale are selling within 35 days after their initial listing date.This means you should have your down payment ready to secure your new home, to prevent additional buyers from putting a backup contract on the home you want to purchase. 

We hope these answers to your questions have been helpful and look forward to assisting you with any further questions you may have and ultimately helping you find your dream home!