10 Questions to ask your lender

10 Questions to Ask Your Lender:

These questions came directly from the real estate checklist online and realtor.org. I think it's a great list to take with you to a home mortgage meeting.

Be sure you find a loan that fits your needs with these comprehensive questions.
1. What are the most popular mortgage loans you make? Why?
2. Which type of mortgage plan do you think would 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 is usually 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.
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 they 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?

Some of these questions are more important than others, but they are all good questions to ask. I think it is important to make sure you are getting good terms on your loan, and it is also important that your lender communicates with you (the buyer), the escrow agent (who handles the closing), and me (the realtor). Also, for you first time buyers out there... Be sure to ask about the new tax credit!

Oh By the way... I'm never too busy for any of your referrals!