If you’re getting ready to buy a home, choosing a home loan is a crucial step. It can be time-consuming and confusing, so allow yourself plenty of time to go through this process. Data collected in September of 2016 shows that 59% of homeowners wish they had a clearer understanding of the conditions and details of their mortgage. To make sure you fully understand all aspects of the home loan you’re looking into, make sure to ask the following questions.

#1 What would be my monthly payment?

Make sure you’re not offered a loan you cannot afford. It’s important to buy a house within your budget — remember to include taxes, insurance, utility bills, and any other costs into your budget so you know what kind of mortgage you will be able to afford.

The interest rate on a mortgage is often based on the loan and your credit score. The monthly payment will be based on the loan amount, term, and interest rate. Ask the lender to provide the loan estimate, which will include the annual percentage rate, to give you a better idea of how much your monthly payments will actually be.

#2 What are the criteria to qualify for this loan?

Loans require a certain amount of funds for closing costs and a down payment as well as proof of income and enough money to pay the first few months of mortgage payments. Make sure to factor all of these costs into your budget as well.

#3 Does this loan have a prepayment penalty?

Certain lenders may charge a penalty if you prepay on your mortgage. It may only happen if you reduce the balance by a certain amount or refinance.

#4 How long will I have to wait for my application to be processed?

It can take anywhere from one or two weeks to over two months for an application to be processed. Make sure the lender has all of the required documents to ensure the process goes as quickly as possible. Additionally, make sure you’re aware of anything that could delay your approval. It’s best not to make any job changes or large purchases while you’re waiting for your application to be approved.

Deciding on a mortgage isn’t something you want to rush into. Make sure you do your research and find multiple, credible lenders to meet with. At these meetings, it’s important to fully explain your financial situation and receive a fully-detailed explanation of the home loan terms.