Questions For Your Lender
The following are some good questions to discuss with your lender when applying for a home loan:
1. Are
both fixed-rate and adjustable mortgage loans available?
2. What is the
interest rate? How long can I "lock-in" the financing at the current interest
rate? 3. Is a float down lock available in case rates drop after I have
locked in?
4. What are the other fees a lender may charge me in conjunction with
my loan? Are funds for a second mortgage available?
5. On adjustable loans, how often will the interest rate be adjusted?
6. Is there a maximum limit on each rate change?
7. How often will the monthly payment be adjusted?
8. Is there a ceiling on payment adjustments?
9. Can the term of the loan be extended?
10. What is the maximum rate that can be charged over the life of the
loan?
11. Is there any potential for negative amor tization?
12. Is there a pre-payment penalty clause? This involves extra charges
for paying off the loan before maturity. About 80% of all loans in the
United States are paid off early.
13. What is the "grace" period?
14. How late can a monthly payment be made before a late charge is assessed?
15. What will happen if a payment is missed?
16. If you sell your house, will the new buyer (if he/she qualifies) be
able to assume your mortgage at the same interest rate?
17. Do you have to pay "points" to get your new mortgage?
18. Usually lenders charge points for the cost of giving you a mortgage
loan. A "point" is 1% of the loan.
19. Will the lender require mortgage insurance?
20. Is the loan serviced locally or is the servicing sold?
21. Ask for a written "good faith deposit".
 ABR, CRS, GRI, LTG, CLHMS Associate Broker, Realtor® |
928.978.1003 |