Posted by: China Moon | November 8, 2006

10 Questions to ask your Lender

Good afternoon people. Today it’s well into the 60’s; a truly UNSEASONABLY warm day here in south central Wisconsin. Kinda makes you think about a nice home, a spacious yard, grilling-out, kids running around or installing the jacuzzi you’ve been wanting…

Just thought I’d chime in with some reasonable questions for you first timers that I found awhile ago. Enjoy and learn…

Your relationship with a lender can potentially last 30 years. That’s a long time to be unhappy. To find a lender and loan that fit your needs, ask lending companies the following:

1. What are the most popular mortgage loans you make? Why?

2. Which type of mortgage plan do you think would suit us? 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? PMI is usually required if you put down less than 20 percent. Most lenders will let you discontinue the policy when you reach 20 percent equity by paying down the loan. But you’ll likely have to initiate that change. Lenders are required to cancel your PMI only when you reach 22 percent equity.

5. Who’ll service the loan—your bank or another company?

6. What escrow requirements do you have? Examples: number of days in advance of closing that money has to be deposited; form money must be in, such as cashier’s check.

7. How long is your lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if rates drop during this time?

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? Just as when you’re selecting a Realtor®, lenders shouldn’t shy you away from asking questions. Remember, the squeaky wheel gets the oil.

Ciao

~China Moon, Realtor®

“Have you been to China?”

Go to China at: www.SmokeSignalHomes.com ::: Middleton WI 53562

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