Getting a Loan? Ask these questions.
There are so many options available these days for home loans that you really need to do your research. To begin with, you should query a couple of different lenders, but there are some basic questions you should ask each of them.
Ask them what their most popular mortgage loans are and what type do they think would work best for you. Obviously you want to know the terms, so ask your lender about the current rates and how they may change in the short term. Ask if you can lock in a rate for a particular period of time. Also you may want to ask if you could pay points to lower the effective percentage rate. Be sure to ask about any hidden fees, penalty fees for prepayment and total closing costs projections.
If you don't plan on putting down 20%, then most lenders will require you to purchase Private Mortgage Insurance. You need to ask you if you'll be required to do so and if so how much will it cost and how long will it be required.
Often when you get a loan from a particular lender they will sell the loan package to another company to service the loan. You need to find out who is going to actually going to administer your loan for the next several years.
Finally, you need to ask how long this process is going to take so that when you put a contract in on a home you'll be comfortable in knowing that you will be able to meet your deadlines and close on the property.
RUTH BETHEM, ABR, CRS, GRI, Realtor®