So you have now turned the tables on the mortgage person. You will quickly find the person you want and should work with. Someone who will take good care of you, isn't in the business just to cram a loan through. If they are willing to answer all these questions, sound intelligent, and honest, they very likely are, and would be a good choice to do your loan.
1. Can you outline the loan process to me? What steps do I need to do?
2. What happens if my loan is not closed prior to the lock expiration?
3. I am putting 5 percent downpayment, would I be able to refinance and drop PMI after a year if my home appraises and gives me LTV of 80 percent? You will likely not need to refinance just to remove the MI, but it might make sense for additional savings if available.
4. What are the different appraisals, and what type will be needed for my loan?
5. What is title insurance? What does it cost, and how do I buy it? If the loan is a refiance, are there ways to reduce the cost of that insurance?
6.. What are the following tests: asbestos, radon, lead paint, well water tests and septic? Should I have them tested?
7. What is the value of a home inspection? Is it required?
8. Can I review my closing documents prior to closing?
10. Can you give me names of past borrowers as references?
How do you sort out the men from the boys? The these last questions will show your mortgage person knows the business and be someone you should work with.
1. Can you outline the loan process to me? What steps do I need to do?
2. What happens if my loan is not closed prior to the lock expiration?
3. I am putting 5 percent downpayment, would I be able to refinance and drop PMI after a year if my home appraises and gives me LTV of 80 percent? You will likely not need to refinance just to remove the MI, but it might make sense for additional savings if available.
4. What are the different appraisals, and what type will be needed for my loan?
5. What is title insurance? What does it cost, and how do I buy it? If the loan is a refiance, are there ways to reduce the cost of that insurance?
6.. What are the following tests: asbestos, radon, lead paint, well water tests and septic? Should I have them tested?
7. What is the value of a home inspection? Is it required?
8. Can I review my closing documents prior to closing?
10. Can you give me names of past borrowers as references?
How do you sort out the men from the boys? The these last questions will show your mortgage person knows the business and be someone you should work with.
- What are mortgage rates based on, and do you have access to real time live pricing? There is only one correct answer to this, Mortgage Backed Securities or Mortgage Bonds. Your broker says he follows the 10-year Treasury Note has their eyes on the wrong indicators and may not be able to offer you sound advice to lock or not. A broker worth their weight will subscribe to a pricing service, this could save your thousands.
- What could cause rates to go up or down before I am going to lock? A good broker knows the coming economic events that can cause rates to change. No one can predict the future, but we know certain events like a Fed meeting are more likely to move rates than the next ADP Payroll jobs report.
- So I hear that they are going to raise or lower rates soon, will that effect my rate? When the Fed makes a move, they can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very short term rates that impact things like credit cards, home equity credit lines, auto loans and the like. Mortgages are long term bonds are not directly influenced by a change to these short term rates.
Remember saving an 1/8% on your rate on the wrong loan can cost you thousands of dollars over the right loan. Please ask more questions than what is your rate, I want to answer those other questions for you as well.
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