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Mortgage Loan

Questions to Ask When Applying for an Armed Forces Mortgage Loan

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Mortgage LoanGetting a mortgage loan is one of the most convenient ways of securing a home for your family. There are direct mortgage lenders who offer convenient armed forces loans and VA loans at competitive interest rates. Consider a number of factors before making your final decision to avert any regrets down the road.

What is the interest rate?

According to Direct Mortgage Loans, most armed forces loans have shorter processing time to provide servicemen with the money they need. Before anything, the lender should provide you with accurate information about the interest rate and fees. The document you will receive should indicate the annual percentage rate (APR), points, and all other charges when repaying the loan.

What is the closing cost?

In most cases, the loan borrowers pay a closing fee for the services offered by the lender and the real estate company involved in the agreement. Being aware of these costs will help you make the necessary financial plans. The lender should provide a written estimate of the costs within three business days after you submit your loan application.

Can I lock the interest rate?

Fluctuations in the real estate market have a direct impact on interest rates. Locking the interest rate will cushion you from getting a higher rate between the time you apply and complete repaying the loan. Fees may apply, so inquire about them to make a conclusive decision.

Is there a prepayment penalty?

Some lenders impose a penalty to clients who prepay their loans. Take the time to inquire about the penalty specifics to make the necessary adjustment on your repayment plan.

The answers provided to these questions will help you to know if taking the armed forces loan is worth it. Be sure to read and understand all the terms and conditions to avoid any disagreements and inconveniences later on.

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