Here's a great list from Susan Grant of some essential questions to ask when you meet with a lender.
10 Questions to Ask Your Lender
1. What are the most popular mortgages you offer? Why are they so popular?
2. Which type of mortgage plan do you think would be best for me? Why?
3. Are your rates, terms, fees, and closing costs negotiable?
4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? (NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, most lenders will let you discontinue PMI when you’ve acquired a certain amount of equity by paying down the loan.)
5. Who will service the loan — your bank or another company?
6. What escrow requirements do you have?
7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it drops during this period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the loan? Used with permission from Real Estate Checklists & Systems, www.realestatechecklists.com.
Be sure you work with a REALTOR® and lender who can discuss different options and address your questions and concerns!
To search for Santa Cruz properties please click here, www.SusanGrant.biz, or contact Susan Grant directly at (831) 247-9140.
Susan Grant, David Lyng Real Estate, Santa Cruz CA DRE#01331769
Learn about the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity Program at www.REALTOR.org/housingopportunity.
For more information on predatory mortgage lending practices, visit the Center for Responsible Lending at www.responsiblelending.org. Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.