Questions for Your Lender
Ever make a list of questions for your doctor? It's a great
way to remember to ask things that are important to you.
And so it is with your mortgage-related questions.
That's why Real Living created this comprehensive list
of questions for your lender. Before choosing
your lender and making application for your mortgage
loan, make sure all these questions are asked — and
answered — to your satisfaction.
- Do you offer a fixed-rate loan?
- Do you offer an adjustable rate loan and if so:
- How often will the interest rate be adjusted?
- Is there a maximum limit on each rate change?
- How often will the monthly payment be adjusted?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?
- Can I convert the adjustable loan to a fixed loan at a later date?
- Can I lock in my interest rate? For how long?
- What points can I expect to pay at closing? (Remember, one point is one percent of the loan.)
- What other fees can I expect to pay?
- Are funds available for a second mortgage?
- Is there a prepayment penalty clause?
- Would my loan be open-ended?
- What is the grace period of the loan?
- How late can a monthly payment be made before a late charge is assessed?
- What will happen if I miss a payment?
- Is this an assumable mortgage?
- Do you require me to carry mortgage insurance?
Buying a home is generally a long-term commitment. And
getting the loan for it takes both time and energy. You
home mortgage consultant can help you fully understand the
financial implications of your decision and start you on
the way to new home ownership.
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