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What Questions Should I Ask?
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What Questions Should I Ask of a Mortgage Lender?
What Questions Should I Ask?
Asking the right questions is critical in any mortgage transaction. Some examples of appropriate questions are
- What is the origination fee or loan discount fee (Points) for each loan in which you have interest?
- How long is the rate being quoted locked? If less than 60 days, ask what the 60 day lock rate is for the loan you want?
- What are the appraisal, credit, and application fees?
- When should you receive a decision on your loan request?
- What are all other closing costs in addition to points?
- In addition to the title insurance for the lender, what is the cost of owner's title insurance?
- What insurance and real estate tax escrows are required? How many months' of each will have to be collected at closing?
- What miscellaneous fees are required, including any underwriting, processing, funding, warehousing, document preparation or review fees.
- What is the effective rate for the loan in question? Ask for a preliminary Truth-In-Lending (TIL) statement.
- Depending on the dates included in your Purchase and Sale (P&S) Agreement, ask if you can close near the end of a month to minimize your prepaid interest amount.
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