Every once in awhile you'll have colleagues that will find you useful to pass along to your clients. With permission here is a great list forwarded by Susan Grant of what you should ask your lender when meeting with him/her. Feel free to add any questions in your comments that you do not see listed here!
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10 Questions to Ask Your Lender
1. What are the most popular mortgages you offer? Why are they so popular?
2. Which type of mortgage plan do you think would be best for me? Why?
3. Are your rates, terms, fees, and closing costs negotiable?
4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? (NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, most lenders will let you discontinue PMI when you’ve acquired a certain amount of equity by paying down the loan.)
5. Who will service the loan — your bank or another company?
6. What escrow requirements do you have?
7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it drops during this period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the loan? Used with permission from Real Estate Checklists & Systems, www.realestatechecklists.com.
Be sure you work with a REALTOR® and lender who can discuss different options and address your questions and concerns!
To search for Santa Cruz properties please click here, www.SusanGrant.biz, or contact Susan Grant directly at (831) 247-9140.
Susan Grant, David Lyng Real Estate, Santa Cruz CA DRE#01331769
Learn about the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity Program at www.REALTOR.org/housingopportunity.
For more information on predatory mortgage lending practices, visit the Center for Responsible Lending at www.responsiblelending.org. Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.
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Andi, thanks for sharing this great information on what to ask on loans. Good info to share with buyers.
Given that a bulk of buyers in this market are first time homebuyers, it's especially important that the buyer knows the right questions to ask. Often times lenders won't offer up this education, and in the end, the buyer can wind up confused, frustrated, and dissatisfied. I'd also recommend a buyer ask about which closing costs (the entire list) that they will be responsible for. Also, it's always good for the loan officer to explain basic terminology (LTV, DTI, UFMI, etc) so that the buyer has a basic understanding of what these are, and how they affect them. Great post!
Absolutely Alissa! I come across some REALTORS that don't even know what it means! THANK YOU for your input!
Thanks for the rebog Andi. This needs to go in my "first meeting file."
Glenn - Great idea! I have something similar but this is definitely more expounded upon and it will be reviewed with buyers. I may even send a copy to lender and ask if buyers are aware of the answer to these just ot make sure we are all on the same page.
Andi-if you need some materials or resources for buyers regarding terminology etc., I have some resources for you. It's meant to be simple, and easy to understand :) Have a good one...and isn't it crazy weather here in Long Beach?!?
Hi Alissa it's time to put a photo up of your pretty little face! I have quite a few resource materials that I equip buyers with prior to us going through the process. It helps them not to be too overwhelmed by the process. :)
Good re-blog! A question we should all be asking, in addtion to #5 is how much money will the servicing company generate from selling my mortgage?
Ooooo great question Carla!