May 14, 2011

Questions To Ask A Mortgage Lender

Here we have compiled a list of common questions you should ask a lender. 

Information about Lender: 

  • Does getting a good interest rate depends on excellent credit rating?
  • What are the different steps involved in the process of pre-approval?
  • How much time will it take to complete the process of pre-approval?
  • Is it allowed to Lock-In the interest rate while buying a home?
  • Till what time is the Lock-In best for?
  • Till what time is the Lock-In best for?
  • What will happen if the interest rate goes down before a deal is closed?
  • After approval of a loan, will you provide a written commitment?
  • What are the documents needed at the time of loan approval?
  • How much time does a loan takes to get approved?
  • How long will it take to close the loan after getting approved? 

About Loan Process: 

  • If needed, can you process the loan faster?
  • Where is the mortgage loan processed?
  • What is the total time required to process a mortgage loan?
  • Can the Lock-in also be extended if closing gets delayed?
  • Are the latest updates on loan processing available?
  • How long does it take to get a loan approved? 

Analyze your Financial Situation: 

  • Do you offer any special programs with lower interest rates or reduced closing cost for the first time buyers?
  • How much of a loan amount can be borrowed on a mortgage?
  • What can be done to fix the past credit problems?
  • What can be done to qualify for the required loan?

References: 

  • Can you give me the references of those people whose loans you have processed? 

Points and Fees: 

  • Is the originating fee a part of the closing costs?
  • When can the Interest Rate and Discount Points be locked?
  • How long is the Lock-In period valid for?
  • What is the durability of the point's quote that was given by you verbally?
  • What will be the total of closing costs?
  • How much do you charge as junk fees?
  • How many days of interest are figured by you in prepaid?
  • Can any of the fees be negotiated at the time loan process?
  • What are the fees that need to be paid at the time of application?
  • Are the credit report fee and the appraisal fee needed to be paid at the time of application?
  • What will be the principle amount and its interest that needs to be paid every month?
  • Is there any extra fee that needs to be paid if the rate goes down?
  • Can the fixed rate be converted without refinancing, if yes what is the conversion fee?
  • Can a loan be pre-paid at any point of time?
  • Is there any pre-payment penalty associated with this loan? 

Home Owner Insurance: 

  • Do you think that an individual inspection is required to rate the property?
  • Do you provide any premium discounts if homeowner's insurance are carried with you?
  • Does the Home owner insurance policy have any provision that covers personal property that is lost, stolen or damaged within the premises?
  • How much will the insurance company pay and for how long if the house is completely destroyed?
Posted in Real Estate Advice
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