Questions and answers you should ask and get from your home loan lender

Knowing exactly what to ask your home loan lender can be a baffling task. With so many questions and answers being involved in the home loan process, it's important that potential buyers begin the process with a personal checklist of information that they want answers to, in order to help them better navigate the process.

Purchasing a home is a very personal and emotional decision, which is why having a lender who understands the process is so important. While most brokers will offer you extensive information on the home loan process, you should also be prepared with questions that they may not have thought of.

Here are 5 questions you should get answer to from your home loan lender:

What will my interest rate be?- How much interest you'll be paying should be one of your first questions since this factor will greatly affect how much you will pay for your mortgage each month. If there is a rate that you would like to stay under or are unwilling to pay, it is important that you express this information upfront in order to avoid any problems down the line.

What type of loan is best for me?- Not every loan is for every borrower. Some individuals are seeking loans that will allow them to pay off creditors, others want to finance a second home, while still others want to purchase a home for the first time. If your lender is not specific in identifying your needs and addressing which loan is best for you, then you should seriously consider seeking another lender.

How long will the home lending process take?- The home loan process is different for every one, but shouldn't take longer than a month to six weeks under normal circumstances. You should however anticipate at least some minor delays and factor these into your overall home loan timeline.

Are there any fees associated with my loan? - Identifying how much you'll be paying in fees is important to tackle up front. There are certain fees that are associated with purchasing a home and getting a firm grasp of the anticipated amount is important in order to accurately budget. Pay special attention to broker or lender fees that you may be charged, as these are often used avenues used by unscrupulous parties to take advantage of unwitting borrowers.

Is there a pre payment penalty?-The ability to pay off your loan early may initially seem like an unlikely event, but in the off chance that is possible would you be OK with being penalized for doing so? Unfortunately, many lenders do charge a penalty for paying off your loan early; so it's important that you find this out before you agree to the loan.

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