There’s no doubt that a mortgage will be the biggest loan you ever take out. But when you take this huge step you need to be sure that you talk to your lender and ask several questions. The answers to these questions should help you to determine what is right for you and our family.

First you should ask what types of home mortgages there are out there. With such a variety available you need to see which one will suit your needs best. Next you should ask what the interest rate is. This is also known as the annual percentage rate or (APR). This will help you understand how much you will be paying a month and what type of loan you should go with. You can also ask if there are any discount points or origination fees. These could help you in securing a lower interest rate. The way this works is one point is equal to one percent on the principal. You should also ask what the closing costs will be. This lets you know what you will need to have as far as cash down goes.

You should also inquire as to what rate locks are and is it possible for you to take advantage of them. These can help guarantee specific interest rates and points for the mortgage. You should also ask if there is a fee for this service. One of the most important questions is what the minimum down payment that will be required is. You should know where every cent goes.

You can also ask if there might be a prepayment penalty. This is important if you plan on paying off your mortgage early. It’s always great to know how long it will take to close the loan. This way you will know how to proceed as far as moving trucks, or landlords notice if you have been renting. You also might need to know if there is anything that may delay your application. Usually the answer here is your credit score. And last but not least you need to know what documentation you will need to fulfill your obligation for a home mortgage.