10 Questions to Ask Your Lender

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Be sure you find a loan that fits your needs with these comprehensive questions.

1.      What are the most popular mortgage loans you offer?

2.      Which type of mortgage plan do you think would be best for us? Why?

3.   Are your rates, terms, fees, and closing costs negotiable?

4.      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 a 20 percent downpayment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan or increasing the value of your property.

5.      Who will service the loan? Your bank or another company?

6.      What escrow requirements do you have?

7.      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 rates drop during this period?

8.      How long will the loan approval process take?

9.      How long will it take to close the loan?

10.  Are there any charges or penalties for prepaying the loan? (This is a very important point!)

11. Should I ask my Realtor to include a request for the seller to pay for any items for me?  Your Realtor can help you navigate the loan process and will coordinate all aspects of the closing with your lender.

Used with permission from Real Estate Checklists & Systems (http://www.realestatechecklists.com).