Questions to ask when Choosing a Lender

Dreams are free, so free your dreams.” ~Terri Guillemets

Loan terms, rates, and products can vary significantly from one company to the next. When shopping around, these are a few things you should ask about (National Association of Realtors, 2020).

General questions:

  • What are the most popular mortgages you offer? Why are they so popular?
  • Are your rates, terms, fees, and closing costs negotiable?
  • Do you offer discounts for inspections, home ownership classes, or automatic payment set-up?
  • Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?
  • What escrow requirements do you have?
  • What kind of bill-pay options do you offer?

Loan-specific questions:

  • What would be included in my mortgage payment (homeowners’ insurance, property taxes, etc.)?
  • Which type of mortgage plan would you recommend for my situation?
  • Who will service this loan—your bank or another company?
  • How long will the rate on this loan be in a lock-in period? Will I be able to obtain a lower rate if the market rate drops during this period?
  • How long will the loan approval process take?
  • How long will it take to close the loan?
  • Are there any charges or penalties for prepaying this loan?
  • How much will I be paying total over the life of this loan?

This article, or any other corresponding promotional material(s), is in no way intended to be a comprehensive assessment.

Please contact Stutsman Realty directly to discuss your real estate goals!

References

National Association of Realtors.  Questions to ask when choosing a lender.          https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/questions-           to-ask-when-choosing-a-lender.  Retrieved online July 10, 2020.

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