Tweaking your decision? Ask questions!
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Now that you know what kind of mortgage lender you'll be working with and what type of mortgage deal you would like, back up your decision with some hard facts. Don't be afraid to ask questions. And your lender will be all too happy to answer them.

1. What's the interest rate?
This is a major deciding factor and will help you know exactly how much you'll be paying. Remember that rates change frequently and your lender might not offer you their best deal. Compare their mortgage programs with other companies and ask for an itemized list of their fees. In this way, you'll have a general idea of the amount of money you'll be putting out.

2. Are there closing costs to be paid?
Mortgage deals often come in packages. These kinds of transactions almost always include fees for different services offered by the lenders. Know about those kinds of fees as soon as you can. Have the mortgage company write you an estimate of these costs about two to three days after receiving your loan of application. If your lender refuses this kind of request, you might want to think of changing your mortgage lender.

3. Can I lock my interest rate?
Interest rates fluctuate all the time. You might want to lock them on times when rates are low. There are companies however, that will charge you a penalty of locking in your rates. This is for mortgages that go for a long time, like 5 to ten years. Compare your figures. Is it higher? Lower? Will you be paying more than you are prepared to do so? Ask for expert advice.

4. Any prepayment penalty I should know about?
Some mortgage lenders offer lower rates if you decide to accept prepayment penalties. They can be 1 percent of the loan amount or others may amount to about six month's worth of interest. There are deals wherein the penalty pops up once you sell your home. How long is this penalty period? How is it calculated? Find out all these first hand and think if you'll go through a prepayment penalty.

5. The Big One: How much is the minimum down payment needed?
Not only that it will tell you if you can afford this loan or not, it will also set the rates and terms of your deal. This will be about 10 to 20 percent of the price of the property. The more money you put down, the more leeway you have with your rates and terms. But if you're short on cash, the company might need you to buy a private mortgage insurance.

6. Are there documents I need to provide you with?
As in all transactions, your mortgage lender will need a proof that you have the ability to pay your loan. This includes papers pertaining to how much you earn, your assets, your credit history, liabilities and other loans. If you have an exceptional credit history, you might qualify for a no-documentation loan but in exchange, you will have to pay a heavier down payment at a higher rate.

7. How long will it take you to process my application? Any potential delays?
Be a realist. There is a lot of paperwork involved so do not expect your mortgage application to be processed in a week. Wait for about 45 days, 2 months maximum. If you have provided your lender with all the papers and pertinent information, there shouldn't be any delays on processing the loan. In case that some changes occur while developing your loan, i.e. change of jobs, salary increase or decrease, change in marital status, be sure to let your lender know so as to change the details on the documents accordingly.

Ready to decide? Remember to weigh your options thoroughly and always ask for advice.