Important Questions To Ask
Your Mortgage Lender

This article by Hunter Taylor offers some good insight into questions you should ask your Gilbert mortgage company when requesting a loan.

A home loan may be the largest single dollar amount that you will request. The process of securing a home loan can be very intimidating. The finance representative that may be processing your loan may not be as accessible as you would like and s/he may use terms with which you may be completely unfamiliar or have only heard of simply in passing. So, when you have the finance representative’s attention, make sure that you have a list of questions that you would like answered and/or ask the representative what to expect at each step of the process. In addition, ask how many days or weeks it will take to progress from one step to another.

Briefly, as a word to the wise from consumer advocates, get your financing prior to looking at homes and do not purchase homes that are at the maximum of what your broker will finance. By securing your financing prior to looking at homes, your “eyes don’t get bigger than your stomach.” In other words, you will save time by realistically looking at homes you can afford. In addition, you will not be “house poor.” “House poor” is when every dime you have is going to the mortgage. You will not be able to enjoy the other things in life such as vacations, road trips, movies, etc.

Now that the “fair warning” has been given, take a look at some of the questions you should ask your finance representative:

What are the various types of loans available to me?
If you are a first-time homebuyer or a member of a “disadvantaged” group, you may be eligible for down payment assistance.

What are the terms of the loan?
Ask the finance representative to run various scenarios for you based upon 15-year, 30-year, interest only, fixed rate, or adjustable rate loans. Ask for the different down payment and private mortgage insurance (PMI) scenarios. Generally, if the down payment is higher the monthly payment is lower.

Is there a prepayment penalty?
You do not want to be penalized for paying off the loan early. If there is a prepayment penalty ask the finance representative to remove this. If the representative is unable to remove it, reconsider using the rep and/or ask the rep to find companies that will not penalize you for paying off the loan early.

Who can I contact to get updates regarding my loan?
You need to be able to contact an alternate in case the finance representative is out-of-pocket for an extended period of time.

How long should the financing process take from submitting the loan application to notification that I am approved for the loan?
You need to know what to expect from your finance representative to hold him/her accountable for completing the loan process and keeping you informed.

What documentation do I need to supply?
The finance representative may need bank statements, W-2s, employment information, etc. in order to submit the loan request for processing.

These are some of the questions that you should ask your finance representative when requesting a home loan. Do not be intimidated or insecure about the process. Ask questions over and over until you are comfortable that you understand the process. You are the customer and you have a team of individuals from the real estate agent to the closing attorneys who are ready to assist you in getting your own home. Good luck in securing your own “home sweet home.”

Articles of interest to those seeking a home mortgage.

Questions To Ask When Requesting A Home Loan
Secure The Best Mortgage Deal
Is It Time To Refinance Your Home
Five Tips To Slash Home Finance Costs
All About Predatory Mortgage Lending
American Dream Down Payment Act
Mortgage Loan Pre Qualification vs Pre Approval

Stephen J Lent
Mobile: 480 789-0311
Fax: 480 889-3701
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