Important Questions to Discuss with Your Mortgage Broker
1. General Questions:
1.1 What types of fixed-rate or adjustable-rate mortgages do you offer?
1.2 How long is the financing rate locked in, and what is your lock-in policy?
1.3 Is there a float down lock available if interest rates decrease after locking in?
1.4 What additional fees might I expect in conjunction with my loan?
1.5 Are funds available for a second mortgage?
1.6 Is there a pre-payment penalty clause, and if so, what are the terms?
1.7 What is the grace period for payments?
1.8 How late can a payment be before incurring a late charge?
1.9 What are the consequences if a payment is missed?
1.10 Can the new buyer assume my mortgage at the same rate if I sell my house?
2. Questions on Fees and Charges:
2.1 Are points required to secure the mortgage, and if so, how many?
2.2 Will mortgage insurance (PMI) be necessary?
2.3 Will the loan be serviced locally, or will servicing be sold?
2.4 What are the total closing costs?
3. Questions on Adjustable-Rate Mortgages:
3.1 How frequently will the interest rate be adjusted?
3.2 Is there a maximum limit on each rate change?
3.3 How often will the monthly payment be adjusted?
3.4 Is there a cap on payment adjustments?
3.5 Can the loan term be extended?
3.6 What is the maximum rate that can be charged over the loan’s life?
3.7 Is there potential for negative amortization?
3.8 What is the annual percentage rate (APR)?
Bosco a local realtor Keller Williams Realty Group often refers to the team. The team is your Realtor, mortgage broker and attorney. Having the right people in place to represent you in very important to all real estate transactions. The right team members will guide you through the process of home-ownership and will be ready to answer your questions. Engaging your mortgage broker with these questions can provide you with a clearer understanding of your options and help ensure you make informed decisions throughout the mortgage process.