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Questions to ask a lender
What questions do I need to ask the lenders?
1. What types of loans are offered?
Does the lender offer fixed and adjustable (ARM) rate loans?
What other types of loans are offered?
2. What points are charged for a particular rate?
If you want to pay less points how much does the rate increase?
3. What application fees are charged?
What are the non-standard fees and can you negotiate around some or all of these fees?
4. What is the current interest rate for a 30 year fixed rate loan?
Keep an eye on the papers to see if this is competitive.
5. Does the loan require Premium Mortgage insurance and for how long?
6. Can you prepay the loan without penalties?
7. Can you lock in the rate and for how long?
Also, when is the rate locked in: at loan application or loan approval?
8. Who should you call if you have questions and/or concerns?
Most likely this will be the loan officer.
9. What is the processing time for a loan?
You will need to ensure that the loan can be closed within the time frame you are working in. Nowadays, there should be no roadblocks, so beware if the lender appears to be very slow. It may be a sign of an incompetent service.
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