8 Questions to Ask Yourself Before Buying a Home

With mortgage rates declining slightly you may be considering buying a home. In order to make the best decision possible on your mortgage loan, there are a few crucial questions you should ask.

What are the current mortgage rates and fees?

Get a clear picture of the interest rate you qualify for and understand all the lender fees. Ask about discount points to buy down rate.

What are the loan program options?

There are many to choose from and each has pros and cons to consider. Find the right fit based on down payment, credit score required, and your financial situation.

What down payment is required?

The minimum down payment can vary. Find the minimum down payment percent for each and weigh any benefits of putting down more to avoid mortgage insurance.

How much can I afford?

What you’re approved for is the maximum amount. Be sure to consider other related expenses and have your lender run different scenarios to ensure you’re comfortable with the effect on your budget.

How long is the mortgage pre-approval valid?

This varies by lender. Know how long your pre-approval is valid for and what the process is to get re-approved if your home search takes longer.

What are the estimated closing costs?

Closing costs are typically 2%-5% of the home’s purchase price. By reviewing an estimate you’ll better understand the upfront expense.

What is the rate lock period?

A rate lock guarantees your quoted rates won’t increase for a set period, usually 30-60 days.

What are steps after pre-approval?

Understanding the next steps and timeline helps you know how long you have to shop, get a contract, secure an appraisal, and get final approval.

Buying a home is a huge milestone that is a cause for celebration. So long as you do your research and are not afraid to ask questions, you’ll be on your way to closing in no time. At Dominion Energy Credit Union, our Mortgage Lenders are ready to help. Contact us today to get started.