There is nothing quite like buying your first home. This can put a smile on your face that lasts for many days (or longer).
Unfortunately, many people make mistakes leading up to their closing, which ends up causing them unnecessary stress in the near future.
If you want to avoid this situation, there are several questions you need to ask (and answer):
- What is my monthly payment? In short, you want to know how much money you will need to pay your lender every month.
- Do I have a fixed rate or variable rate mortgage? Make sure you know what you're applying for, as you don't want to get stuck with the wrong type of loan.
- When is my payment due date? This may not be a big deal to some, but others need to know this from a budgeting perspective.
- What are the closing costs? In addition to your down payment, you'll be responsible for some of the closing costs. You need to have a clear idea of how much money this will set you back.
- Have you reviewed all the paperwork for errors? You don't want to wait until the closing table to do this, as you'll have enough going on. You should review the paperwork as far in advance as possible.
These are the types of questions to ask before closing on your first home. When you collect the right answers, you'll feel much better about moving forward. Combine this information with knowledge of your legal rights, and you're ready to make your dream come true.
Source: AmeriFirst, "10 Questions to Ask Before Closing Your First Home Mortgage," accessed Feb. 22, 2018