What Questions Should You Ask a Lender When You’re Mortgage-Shopping?

What Questions Should You Ask a Lender When You're Mortgage-Shopping

Will they sell your mortgage? Some lenders will hold your mortgage in-house, while others will sell it to another lender after a time. If you can get your mortgage held locally and have a job with direct deposit, you have the option to set up a bank account and have part of your paycheck paid directly into an account from which the mortgage payment will be deducted. This provides you with the following benefits:

  • If you’re paid twice a month or bi-weekly, your mortgage payment can be withdrawn in two smaller payments rather than one large one.
  • For those who want to pay down the principal early, you can set up the payment to “strip” or pull all the money out of the account and make a small additional payment each month.

Does the bank require 20% down? If you have that much to put down, it may be tempting to do so. However, if you can make a smaller down payment and hold onto additional cash for a year or two, that money can help with any unexpected repairs. It’s nice to think that nothing will go wrong, but even brand new houses can have problems.

Do they offer commercial loans? If you’re just starting out, it’s a good idea to consider purchasing a duplex and living in one half of it. It may not be your ideal brand new first home, but it’s one of the only ways to get your neighbor to pay your house payment.

Are the rates fixed or flexible? When you’re starting out, it’s a very good idea to try to get a loan with a fixed rate. While the prime rate is currently quite low, that’s no promise that it won’t change. It’s tempting to think you can refinance if the rate changes, but if your credit rating changes, you may be stuck with a very expensive mortgage until you can refinance.

Is your loan an interest only with a balloon? There are points at which these loans make business sense, but if you plan to stay in the house long term, the balloon loan is not a good vehicle.

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties and all of our surrounding areas. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty our site is directly connected to our local MLS and is updated with new homes every hour. By signing up for New Listing alerts you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!

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Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Affordable living. This 3 bedroom, 2 bath home has been given a facelift with new paint and new flooring in the main living areas. It also has off-street parking and is on a nice corner lot. $91,000 Active

802 N Washington Street Huntingburg, Indiana

3 Beds 2 Baths 1,120 SqFt 0.180 Acres

Listing courtesy of Steve Wigand from ERA FIRST ADVANTAGE REALTY, INC.

HOME FOR THE HOLIDAYS!! The Inviting Living/Hearth Room with Cozy fireplace looking for your Personal Seasonal decorating touches. Fireplace is wood-burning or electric. Nestled against a wooded, FENCED backyard with Room to Roam and sitting on approximately one acre corner lot within walking distance of uptown shopping, pharmacy, walking trail, golf practice green, and so much more. Recently Remodeled and Renovated with roof, windows, exterior door, vinyl siding, furnace/AC, kitchen cabinets, & Oak trim including some new carpet and vinyl flooring as well as totally Neutral Paint. Off the Kitchen/Dining and Family Room is a 8 X 28 covered porch/patio for outdoor entertaining and watching wildlife in backyard. For convenience there is a small front entry open porch. Kitchen appliances as well as ceiling fans included. Don't miss the detached 12 x 20 garage as well as 8 x 12 storage building. Check out this Priced to SELL at $119,900 Spacious (1,750+ S.F.) Home and be ready to MOVE IN AT CLOSING! For more pictures, click on picture of home. Residential location corner lot; however, 6th Street/Highway 64 may be Commercial. $119,900 Active

506 N GEIGER ST Huntingburg, Indiana

3 Beds 2 Baths 1,752 SqFt 1.007 Acres

Listing courtesy of Delmar Bromm from HOFFMAN & MULLEN REALTY INC.

Here is the cutest bungalow offering up to 4 bedrooms, a remodeled bathroom with attached dressing area/utility room, a refurbished kitchen, 3 porches, a heated detached garage all on 4 city lots in the quaint town of Birdseye. This home has great curb appeal with a newer metal roof and siding. The 3 porches offer secluded places to enjoy the quiet time, swinging or viewing the beautiful landscape. The kitchen is full of charm with the original painted cabinets redone with an updated twist and new flooring. The kitchen leads to the utility/laundry/bath area and also to the living room extending to a master bedroom and enclosed porch. The upstairs reminds you of 3 lofted bedrooms full of character. You will love the large yard and detached garage that complete this property. Start enjoying what this home has to offer...close to city park, library, ice cream, convenience amenities, and Patoka Lake! $116,000 Active

405 Antonia Street Birdseye, Indiana

3 Beds 1 Baths 1,516 SqFt 0.654 Acres

Listing courtesy of Tama Stemle from RE/MAX Local.