Jan

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Questions to ask your lender

Filed Under mortgage, rates 

Before you sit down with any lender or broker there are some questions that you should ask them before you go any further in the loan process. First, you should ask what is the interest rate? Be sure to ask for the APR of the loans interest. Normally, the APR is higher than the original rate because of the fees involved in getting a loan. You should be aware of APRs founds in ads. These are often used to bait and switch customers just to get them in the door. Always ask for an itemized GFE (Good Faith Estimate).

If you are considering and FHA or VA mortgage be sure to ask up front if your preferred mortgage professional is HUD approved. You may find than many smaller mortgage companies are not HUD approved but will refer you to another company that is.

Discuss with your loan officer the type of mortgage program that fits your situation, Fixed or ARM, 30 years or 15, fully amortized or interest only, etc. Each type of mortgage is designed with a particular borrower in mind, and is not suitable for every home buyer.

It is a good idea to ask any questions that you may have about the loan and the loan process at the beginning. If you wait until the end, you may feel pressured to sign the papers, because of all the work that was put into them. You are the person that is responsible for making the payments, so you need to feel comfortable with your loan program.

Ask your mortgage professional to explain any programs he or she recommend. Make sure you completely understand your loan program, including fees, rate, possible future adjustments, any negative amortization, and pre-payment penalties before you sign at closing.

Is your rate too high? If you're looking to compare mortgage rates or to get a rate quote on a FHA loan start here


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