The mortgage loan process seems intimidating, complex and confusing. I want to share some questions to discuss with your lender when applying for a home loan. If you want you can just print this page and take it with you when you meet your mortgage professional!
Mortgage Questions
- What will the total closing costs be?
- Is the loan serviced locally or is the servicing sold?
- What kind of fixed-rate and adjustable mortgage loans available?
- How long can I “lock-in” the financing at the current interest rate and what is the lock-in policy?
- Is a float down lock available in case rates drop after I have locked-in?
- What are the other fees a lender may charge me in conjunction with my loan?
- Are funds for a second mortgage available?
- Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity.
- How late can a monthly payment be made before a late charge is assessed?
- What will happen if a payment is missed?
- What is the “grace” period?
- Will the lender require mortgage insurance?
- Will it be an assumable mortgage at the same interest rate
Adjustable rate mortgage questions:
- What is the annual percentage rate?
- How often will the interest rate be adjusted?
- How often will the monthly payment be adjusted?
- Is there a maximum limit on each rate change?
- What is the maximum rate that can be charged over the life of the loan?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?
- Is there any potential for negative amortization?
If you are working with someone who can take the time to explain all of these( and more importantly, your own) questions, the loan process can be much easier. Never be afraid to ask questions. With this list, you have a better idea of what to ask. If you need some contacts to start the loan process, give me a call, txt or email and I can give you a couple.
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Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego and West Linn Real Estate. He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com
Contact him for more information on Portland, Lake Oswego or West Linn Real Estate!
Also posted on Lake Oswego Real Estate.
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