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10 important mortgage loan questions to ask this spring

Daughter on father's shoulders in front of suburban home — Be sure to ask these important questions before borrowing money for a home this spring.

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There’s no question that inflation has cooled significantly compared to mid-2022 when the inflation rate hovered above 9%. However, we aren’t back to normal just yet. At 3.2%, today’s inflation rate is still well above the Fed’s target rate of 2%, resulting in the Federal Reserve’s benchmark rate remaining paused at a 23-year high. In turn, borrowers now face elevated interest rates on everything from credit cards to mortgage loans — especially compared to the rates that were offered in 2020 and 2021.

But the good news is that mortgage rates, in particular, have declined slightly over the last few months, making it more affordable to borrow money for a home. And, as the spring homebuying season kicks into high gear, many prospective buyers are starting the pre-approval process to secure a mortgage loan.

Finding the right mortgage loan goes beyond just getting the best mortgage rate, though. It’s also critical that you understand all the details, fees and requirements from your lender so you can make the best decision possible for your money. And that starts by asking some important questions.

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10 important mortgage loan questions to ask this spring

If you want to make an informed decision on your mortgage loan this spring, here are 10 crucial questions you should ask your mortgage lender:

What are the current mortgage rates and fees?

It’s crucial to get a clear picture of the interest rate you qualify for and understand all the lender fees involved in the transaction. As part of this process, be sure to ask about the mortgage loan’s annual percentage rate (APR), which includes the interest rate plus other costs. And, given that today’s mortgage rates are hovering near 7%, don’t forget to inquire about discount points to buy down the rate.

Find the best mortgage loan rates you could qualify for today.

What are the different loan program options?

There are various mortgage products to choose from. For example, your lender may offer you conventional or jumbo mortgage loan options as well as government-backed mortgage loans, like Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA) and U.S. Department of Veterans Affairs (VA) loans.

Each type of mortgage loan has pros and cons to consider, and your lender should explain the differences and qualifications for each. That way, you can choose the right fit based on your down payment amount, credit score and financial situation.

What is the required down payment minimum?

Down payment requirements can vary across mortgage loan programs, and depending on the amount of money you have to put down on the home, one mortgage loan could make more sense over another. So, be sure to find the minimum down payment percentages for each type of loan you’re considering, as well as the benefits of putting down a higher amount to avoid mortgage insurance.

You may also want to ask if you’re eligible for any down payment assistance programs, as these programs may be available for certain types of buyers or mortgage loans.

How much home can I afford?

Your lender will pre-approve you for a maximum mortgage loan amount based on your income, debts and credit. However, it’s important to understand that the amount you’re approved for is the maximum, and you need to know what monthly payment you can realistically afford.

With that in mind, be sure to ask your lender to run different home price scenarios with estimated payments to ensure that you’re comfortable with the potential costs each month and that they align with what you have budgeted for your mortgage payments.

What documentation is required?

Your lender will need various documentation, from tax returns and pay stubs to bank statements and gift letters, to verify your income, assets and other information that’s required to approve you for your mortgage loan. It can be helpful to get a full checklist of required paperwork so you can prepare in advance, helping to expedite the pre-approval process (and ultimately the loan approval process).

How long is the mortgage pre-approval valid?

Pre-approvals typically have an expiration date, which can vary by lender, but are often between 60 and 90 days. Ask your lender how long your mortgage loan preapproval is valid for and find out what the process is to get re-approved if your home search takes longer just in case there are issues with finding the right home in that time frame.

What are the estimated closing costs?

In addition to your down payment, you’ll need to pay closing costs, which can vary by lender, but typically amount to 2% to 5% of the home’s purchase price. Be sure to request a fee worksheet or estimate from your lender to understand this significant upfront expense.

And, in some cases, you may be able to negotiate with your lender to lower some of these closing costs and fees. Knowing what these costs are as you compare your loan and lender options can be useful as you determine whether it would be worth it to do so.

What is the rate lock period?

A mortgage rate lock guarantees that your quoted interest rate won’t increase for a set period, which is often between 30 and 60 days. As you navigate the mortgage lending process, be sure to find out the lender’s lock periods and associated fees in case you need an extended rate lock.

What are the steps after pre-approval?

Having clarity on the next steps after pre-approval is an important component of ensuring the mortgage lending process is a success. So, be sure to ask your lender about the typical timeline for what happens after pre-approval. That way you know how long you have to shop for homes, the timeline for having a home under contract, when you need to secure the appraisal and the estimated time it will take for the underwriting processes to get the final approval.

Are there any prepayment penalties?

These days, it’s rare for lenders to charge mortgage prepayment penalties. However, it’s still important to confirm there are no fees if you pay off your loan early or refinance down the road, so be sure to ask this question of your lender.

The bottom line

The mortgage process can be daunting, especially in today’s high-rate environment, but being an informed borrower is half the battle. So, as you navigate the mortgage lending process, don’t hesitate to ask your lender plenty of questions, as this will likely be one of the biggest financial decisions you’ll make. That’s why an experienced, communicative lender is key to making the right mortgage choice this spring homebuying season.

Angelica Leicht

Angelica Leicht is senior editor for CBS’ Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.

Historian on Trump indictment: “The most important criminal trial in American history”

Our commentary comes from Princeton University history professor Julian Zelizer, editor of the book, “The Presidency of Donald J. Trump: A First Historical Assessment.”

The new indictment of former President Donald Trump constitutes a historic turning point. This promises to be the most important criminal trial in American history.

Under special counsel Jack Smith, the Department of Justice has boldly declared that accountability is essential to our democracy.

Smith’s damning indictment has charged Trump with four counts of attempting to overturn the 2020 election. Trump’s actions threatened the peaceful transfer of power, a process that separates us from non-democratic countries.

Department of Justice

Through a concerted effort that culminated with a violent mob storming Capitol Hill, Trump rejected the integral norm undergirding a stable democratic system, namely that losers must accept legitimate defeats. Even President Richard Nixon, who resigned in disgrace as a result of the Watergate scandal, understood this to be true.

With this indictment, the Department of Justice has broken with the controversial precedent established by President Gerald Ford in 1974, when he pardoned Nixon for any crimes that he might have committed. The impeachment process offered the possibility of holding Nixon accountable; Ford let the opportunity pass by.

After almost a decade of Americans fighting over race, war and Watergate, Ford concluded it was more important to “heal” the nation by pardoning Nixon than allowing a lengthy legal trial to proceed. Looking directly into the cameras, Ford warned Americans that if a trial took place, “Ugly passions would again be aroused, and our people would again be polarized in their opinions, and the credibility of our free institutions of government would again be challenged at home and abroad.”

But the pardon did not heal the nation. We grew more divided. Many furious Americans claimed that Ford had been part of a corrupt deal. When Ford traveled to North Carolina, he arrived to see placards that asked: “Is Nixon Above the Law??”

His approval ratings plummeted.

More pertinent, Ford entrenched a damaging norm that became part of our nostalgia, pushing leaders away from taking legal action against elected officials who abused their power.

Presidents have continued to feel imperial.

Trump tested Ford’s proposition more than any president since Nixon – and Biden’s Department of Justice has responded that Ford was wrong.

We must preserve key guardrails that prevent the abuse of presidential power. If our leaders violate sacrosanct democratic principles, they will be held accountable regardless of the political fallout.

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Story produced by Jay Kernis. Editor: Maria Barrow.

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Top US diplomat Antony Blinken looks forward to meeting China’s Wang Yi to build on ‘important conversations’

America’s top diplomat on Thursday expressed a wish to meet his newly reappointed Chinese counterpart Wang Yi in the US in the coming months to build on the “important conversations” he had with senior Chinese officials in Beijing in June.

US Secretary of State Antony Blinken told reporters at the United Nations headquarters in New York that he had invited then-foreign minister Qin Gang to visit at a “mutually convenient time” and had formally extended the invitation to Wang.

“We are looking at the fall,” said Blinken of a possible meeting. “We don’t have a response yet, but we just extended that invitation”.

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“I would expect we’ll have an opportunity to see each other and to continue the important conversations that I had in Beijing, that a number of my colleagues in the cabinet had.”

“Others will be going, and we fully expect Chinese counterparts to come to the United States,” Blinken added.

Last week, after weeks of Qin’s whereabouts going unexplained, Wang was named to take over as China’s foreign minister, a position he previously held from 2013 to last December. Wang also directs the Office of the Central Foreign Affairs Commission of the Central Committee of the Chinese Communist Party.

State Department spokesman Matthew Miller on Tuesday said a meeting invitation had been extended to Wang on Monday during a meeting between Daniel Kritenbrink, US assistant secretary of state for East Asian and Pacific affairs, and Yang Tao, the foreign ministry’s head of North American and Oceanian affairs.

“We certainly expect that it is something that they would accept and is a trip that we expect to happen, but we have not yet scheduled a date,” Miller said at the time.

US President Joe Biden has been sending his top aides to Beijing in recent months to stabilise a bilateral relationship that has plunged to its lowest level since the countries established diplomatic ties in 1979.

In mid-June, Blinken became the first US secretary of state to travel to China in five years. He met Qin as well as President Xi Jinping. Both sides described the talks as “candid and constructive”.

Treasury Secretary Janet Yellen was the next Biden administration official to visit Beijing, where she took part in hours-long meetings with China’s premier, Li Qiang, as well as a vice-premier.

Yellen was followed in Beijing by Biden’s climate envoy, John Kerry, who met his Chinese counterpart, Xie Zhenhua.

After a four-day trip that included closed-door talks, Kerry spoke of having “productive discussions”. And though no breakthrough on climate cooperation was achieved, the two sides agreed to hold regular meetings.

Amid heightened tensions over Biden’s export controls on certain semiconductor technology to hobble China’s tech advancement, US Commerce Secretary Gina Raimondo is also expected to travel to Beijing later in August.

Blinken on Thursday said “it would be beneficial to continue these conversations”, noting that he spoke with Wang in July on the margins of an Asean meeting in Jakarta, Indonesia, and that he would “look forward to seeing him in the United States”.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.

How important are test scores for measuring school success?

How important are test scores for measuring school success? – CBS News

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The Nation’s Report Card shows average reading scores for 13-year-olds down 4 points from 2020 and math scores down 9 points. But months before releasing this data, Education Secretary Miguel Cardona warned against taking test scores at face value. Chase Nordengren, a K-12 education researcher, joined CBS News to discuss alternatives to test scores as a measure of school performance.