Having a good mortgage lender is a crucial part of ensuring a smooth transaction. Working with a bad mortgage lender can make the process a living hell for everyone involved and put your purchase in jeopardy of not closing.
Find the right loan for you by asking your lender the right questions. Here are 10 questions you should ask:
- What are the most popular mortgage loans your offer?
- Which type of mortgage plan do you think would be the best for us? Why?
- Are our rates, terms, fees, and closing costs negotiable?
- Will I have to buy private mortgage insurance (PMI)? If so, how much will it cost and how long will it be required? *PMI is usually required if you make less than 20% of the down payment. Most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
- Who will service the loan? Your bank or another company? *Either way, be sure they are available for you to contact, especially during important times.
- What escrow requirements do you have?
- How long is your lock-in period? Will I be able to obtain a lower rate if they drop during this period? *lock-in period is the time the quoted interest rate will be honored.
- How long will the loan approval process take?
- How long will it take to close the loan?
- Are there any changes or penalties for prepaying the loan?
Make sure your lender can answer these questions quickly and with confidence.
If you have questions about lenders, please contact us!
