Most Buyers—especially
first-timers—know only one question to ask when shopping for a
mortgage:
"What
Is Your Interest Rate?"
But there is a
lot more to the mortgage process than getting a good rate. High costs
in fees and poor service sometimes come as very unhappy surprises.
Everything About Mortgage
Loans
Ask Questions
Here’s a list of
suggested questions you might ask a lender:
• How large is
your company, and how long has it been in existence?
• How long have
you been working with home loans?
• Are you a
licensed mortgage broker or loan officer in Texas?
• What is the
process for funding and when will the loan fund (after or at closing)?
• What is the
difference between a mortgage banker and a mortgage broker?
•Is
your company a mortgage banker or a mortgage broker?
• What is the
name and phone number (and e-mail address) of the person who will
actually be processing my loan application? How accessible is that
person?
• Tell me about
all loan fees. What fees must I pay up front? What fees will I have to
pay at closing?
• When will I get
a Good Faith Estimate of the costs of the loan?
• Do the costs
you are quoting include the lender origination fee?
• Are there loans
available with no origination fees? No closing costs? Reduced closing
costs?
• What are your
interest rates?
• Tell me about
any programs that require me to lock in my interest rate. Is there a
fee? How long can I lock in the rate? If interest rates go down, can I
relock at the lower rate? If so, will there be a fee for that?
• What
information must I provide to get a mortgage loan?
• What
documentation will I have to provide?
• Will you
require current tax returns? (Take note of this especially between
Jan. 1 and April 15 if you haven’t prepared your return yet.)
• How long will
it take to get complete and unequivocal loan approval and be ready to
close?
• I plan to stay
in this house for ___ years. Can you show me the breakdown of any ARM
loans you offer vs. fixed-rate loans to see which could save me the
most money in my situation?
• What is private
mortgage insurance? Other than a 20% down payment, how can I avoid the
private mortgage insurance?
• In the last
three months, how many loan applications have you taken and how many
have you been unable to close?
• Can you give me
names and phone numbers of two or three people for whom you’ve funded
loans in the last two months.
CALL ME FOR HELP!
