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1. WHAT IS THE INTEREST RATE ON THIS MORTGAGE? To determine exactly what you'll pay over the term of the loan, you need to know the rate. Ask for the annual percentage rate (APR) of the mortgage interest, which is generally higher that the initial quoted rate because it includes some fees. 2. HOW MANY DISCOUNT AND ORIGINATION POINTS WILL I PAY? Lenders may charge prepaid mortgage interest points to lower you interest rate. Find out how many you'll be expected to pay and which kind of points they will be. 3. WHAT ARE THE CLOSINGS COSTS? Mortgages come with fees for various services proved by lenders and other parties involved the the transaction. Lenders are required to provide a written good faith estimate of closing costs within three days of receiving a loan application. 4. WHEN CAN I LOCK THE INTEREST RATE & WHAT WILL IT COST ME? Your interest rate might fluctuate between the time you apply and the closing. To prevent it from going up, you may want to lock the rate and even points, for a specific period. Ask your lender if lock fees apply. 5. IS THERE A PREPAYMENT PENALTY ON THIS LOAN? There may be. Some penalities are 1 percent of the loan amount, others are equal to 6 months interest, some apply only when your refinance. Find out the duration of any penalty period and how it is calculated. 6. WHAT IS THE MINIMUM DOWN PAYMENT REQUIRED FOR THIS LOAN? The rate and terms of your loan will be based on a down payment figure - typically 0 to 20 percent of the buying price. 7. WHAT ARE THE QUALIFYING GUIDELINES FOR THIS LOAN? These requirements relate to your income, employment, assets, liabilities, and credit history. First-time home buyers programs, VA loans and other government-sponsored mortgage programs typically offer easier qualifying guidelines than convential loans. 8. WHAT DOCUMENTS WILL I HAVE TO PROVIDE? Most lenders will require proof of income and assets before approving your loan, along with other documents. 9. HOW LONG WILL IT TAKE TO PROCESS MY LOAN APPLICATION? This will depend on a number of variables. Be prepared to get the necessary documents to your lender as soon as possible to insure a speedy process. 10. WHAT MIGHT DELAY APPROVAL OF MY LOAN? If you provide the lender wih complete, accurate information, the loan process should run smoothly. Notifiy your lender if you change jobs, increase/decrease your salary, incur addtional debt or change martial status between the time you submit and application and the time the loan is funded. A list of reputable mortgage lenders can be provided to you, just ask... Contact me!
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10 QUESTIONS TO ASK YOUR MORTGAGE LENDER
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