Purchasing a new home can be a daunting task, and if you are a first time buyer or if this is your 20th home purchase, we always want to make the process go as smoothly as possible. Here is a list of questions that you can ask your lender or can help you in narrowing down your search for the best lender for your needs.
Please remember that we also have an extensive list of lenders that might work for you, give us a call and we would be happy to provide that information to you.
10 questions to ask your Lender
Be sure you find a loan that fits your needs with these comprehensive questions.
What are the most popular mortgage loans you offer?
Which type of mortgage plan do you think would be best for us and why?
Are your rates, terms, fees, and closing costs negotiable?
Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? NOTE: Private mortgage insurance usually is required if you make less than 20 percent down payment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
Who will service the loan? Your bank? Another company?
What escrow requirements do you have? What are escrows?
How long is your loan lock-in period (the time that the quoted interest rate will be honored?) Will I be able to obtain a lower rate if they drop during this period?
How long will the loan approval process take?
How long will it take to close the loan?
Are there any charges or penalties for prepaying the loan?
Used with permission from the Real Estate Checklists & Systems