So much goes into preparing to purchase a home. Learning neighborhoods, defining goals and what space requirements you have. You need to save money, understand down payments, closing costs and financing options. The mortgage process is one of the most important first steps. Hoping to take a bit of the guesswork out of that with our 20 great questions to ask your mortgage lender. For a downloadable copy, click here.
1. What kind of loans do you offer?
2. What kind of loan would you recommend for me? What are the advantages and disadvantages of each suggested loan structure?
3. What is the current interest rate? Is the rate quoted the lowest for that day or week?
4. What is the Annual Percentage Rate (APR) of an offered loan?
5. Is the loan rate adjustable or fixed?
6. What are discount points and origination fees?
7. What are all of the costs of the offered loans?
8. If the rate is adjustable – how will the rate and loan payments vary?
9. What are the qualifying guidelines for this loan?
10. What is the lender’s required down payment for this loan?
11. What documents will need to be provided?
12. What are the closing costs?
13. Will the lender guarantee the GFE of settlement charges and loan terms?
14. Does the lender offer a loan rate lock? Is there a fee for the rate lock?
15. Is there a prepayment penalty?
16. Are you equipped to approve loans in-house?
17. How much time do you need to fund the loan?
18. Will mortgage insurance be required?
19. Can the term of the loan be extended? Is there a cap on payment adjustments?
20. Is there a cap on payment adjustments?
Ready to begin your real estate search? Begin the process here.