Are you finished with the house-hunting process in Woodbury, Minnesota? So, what’s the next step? If you have a home picked out, you’re probably ready to secure the money, get your keys, and move in. But where do the funds come from? This is where a mortgage company comes in.
Mortgage companies apply for loans on your behalf and help you purchase a home. However, some people are hesitant at first about whether to opt for their services. That’s where we can help — we’re going to answer eight of the most frequently asked questions about mortgage companies in Woodbury, Minnesota to clear up any confusion.
1. Should you work with a mortgage company?
Working with a mortgage company in Woodbury, Minnesota is a wise decision. They know the industry well, and they know how to recommend suitable and affordable options. They work primarily with you to help you get approved for a mortgage.
2. Do mortgage companies work for free?
No — Mortgage companies charge origination fees for rendering their services. If you aren’t paying them, they will probably be compensated by the lender you ultimately sign with. However, you can also be asked to pay out-of-pocket at the closing. It’s important to discuss this detail with your Woodbury mortgage company ahead of time to avoid any confusion.
3. Are mortgage companies expensive?
When you connect with a reputable and experienced mortgage company in Woodbury, Minnesota, they can offer you competitive rates. But the compensation usually depends on who you hire and your unique requirements.
4. Do mortgage companies take longer than banks to close a mortgage?
Mortgage companies typically take much less time to close a mortgage than banks or retail lenders. Dealing with mortgages is what they do day-in and day-out. As such, mortgage company services are often expedited. It is highly unlikely for a company’s closing to take more than 60 days.
5. Should mortgage company be licensed and regulated?
A professional mortgage company must be licensed and regulated to conduct business legally. They must also comply with pre-license education, minimum experience, and credit check requirements to offer their services.
6. Can a mortgage company find a lower interest rate?
Of course. Hiring an experienced mortgage company in Woodbury, Minnesota will help save your precious time and money by pointing you in the right direction. They can convince lenders to remove certain costs to get you a significantly lower interest rate. However, you should also do your homework and keep an eye on the market rates yourself.
7. How to know if a particular mortgage company is right for you?
To determine if a mortgage company in Woodbury, Minnesota can accommodate your needs, you should ask them the following questions:
- Which loan is ideal for me?
- What’s the interest and annual percentage rate?
- What’s the length of the mortgage?
- Is it an adjustable or fixed-rate mortgage?
- What’s the required down payment?
- Is PMI necessary?
- What are the different costs?
- Is there a prepayment penalty?
- What can you expect in closing costs?
You can check out this blog for a more detailed explanation of some of these important questions.
8. What to expect from your mortgage company?
You can generally expect your mortgage company to offer you multiple options. They are required to mention the mode and percentage of payment right from the beginning. Plus, they should be able to explain why they are or aren’t suggesting a particular product. You should also inquire about the different aspects of the loan, associated fees, documents to provide, the insurance threshold, etc.
Looking for a Mortgage Company in Woodbury, Minnesota?
Home buying is a significant investment that impacts your long-term financial outlook. So, it’s important to take your time and ask the right questions when searching for the right mortgage company in Woodbury, Minnesota. For more information, you can give the experts at Compass Mortgage a call at (877) 793-9362 to learn how we can help.