Questions for your Lender

Getting pre-approved is a critical part of the purchase process, and you need to do this early on so that you will know how much you can actually afford. The pre-approval process will also make you aware of any credit problems that need to be addressed, if any, so you can take care of them before actually trying to obtain a mortgage; some issues will prevent you from getting a loan, so you want to know about these problems right away, as well as errors on your credit report, which are not uncommon.Here is a list of some questions to ask your lender.
This is not, by any suggests that, Associate in Nursing all-encompassing list.

  1. Are both fixed-rate and adjustable mortgage loans available?
    What is the interest rate?
  2. How long am I able to “lock-in” the my interest rate?
  3. Is a float down lock on the market just in case rates drop once I even have barred in?
  4. What are the other fees a lender may charge me in conjunction with my loan?
  5. Are funds for a mortgage available before closing or have to wait for the bank to deposit?
  6. On adjustable loans:
    – how often can the rate of interest be adjusted?
    – Is there a most limit on every rate change? IF your loan is ARM
    – however usually can the monthly payment be adjusted?
    – Is there a ceiling on payment adjustments?
    – will the term of the loan be extended?
    – what’s the most rate that may be charged over the lifetime of the loan?
    – Is there any potential for negative amortization?
  7. Is there a pre-payment penalty clause? This involves further charges for paying off the loan before maturity. Eightieth of all loans within the
    United States area unit paid off early.
  8. What’s the “grace” period?
  9. How late would a monthly payment need to be before a late charge is assessed?
  10. What is going to happen if a payment is missed?
  11. If you sell your house, can the new client (if he/she qualifies) be able to assume your mortgage at identical interest rate?
  12. Does buyer have to pay “points” on a new mortgage? typically lenders charge points on the amount of real estate loan. A “point” is eighteen of the loan.
  13. Will the lander need mortgage insurance?
  14. Is that the loan serviceable in-house (by your lender) or is that the service outsourced? And if it’s sold or transferred, once closing will that occur?
  15. Ask a written “good faith estimate”.

There is more information on the loan process and related matters in the Buyer Reports section of my website.

This entry was posted in Mortgage info.

 

Posted in Financial, Mortgage info

Tagged FHA Loans
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