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Questions to ask before shopping for a mortgage

Firs time home buyers need some education before they shop for a mortgage. The commitment towards a mortgage is generally a long term one. One must ask the following questions before shopping for a mortgage. Some of the answers the individual has to answer and for others help and advice from mortgage professionals is a must.
• The no. of yeas the applicant is going to live in the home: for a mortgage to be an economically viable one, this is an important factor. It is to be noted here a person who avails mortgage loan, lives in the own home for an average of 8 years.
• What the costs are going to be in getting the mortgage: the costs involved are the origination and discount fees, appraisal costs, credit report costs, document costs, title insurance costs and other local municipal or government costs.
• The period by which the closing costs incurred are recovered by way of savings. If the period works out to, say 5 years, then moving away from the house within 5 years makes no sense.
• What interest rate one can afford towards the mortgage: By paying higher points one can get lower interest rate or pay more interest and save points. This is more directed at affordability. Also included in this is the term period for which the mortgage is to last.
• Lock in period for the mortgage: This is best recommended or advised by the lender or the broker. Lock in rates is negotiable in a mortgage.
• Will it be possible to pay all mortgage payments regularly? This not only includes the principal and interest towards the mortgage from the lender or the bank, but also includes homeowners insurance, property taxes, periodic maintenance, any association fees etc.,
• Is the mortgage amount high enough to attract competitive interest rates?
• Can one get homeowners insurance without hassle?