There is much more involved in the mortgage process than getting a good rate. The thing you want most to do is to avoid the shock of high fees that you didn’t anticipate and poor loan servicing. Both are capable of turning what should be a happy occasion into a bad dream.
Here is our list of questions we suggest you ask a lender during your first meeting:
- Is your company a mortgage banker or a mortgage broker? (A banker lends its funds; a broker searches mortgage sources and arranges for you to receive financing from the lending entity).
- What is the name, phone number, and e-mail address of the person who will be processing my loan application? How accessible is that person?
- Tell me about all the loan fees. What fees must I pay upfront? What fees will I have to pay at closing?
- How can you assure me I won’t pay any unnecessary “add-on” fees?
- Do the costs you are quoting include the lender origination fee?
- What are your interest rates?
- Is there a fee to lock in my interest rate? How long can I lock in the rate? If interest rates go down, can I relock at the lower rate? If so, will there be a fee for that?
- What information must I provide to get a mortgage loan?
- Will you require current tax returns? (Take note of this between January 1 and April 15 if you haven’t prepared your return yet).
- How long will it take to get complete and unequivocal loan approval and be ready to close?
- What is private mortgage insurance? Other than a 20% down payment, how can I avoid private mortgage insurance?
NOTE: Do not let anyone pull your credit. Choose the mortgage company you wish to use and only then allow them to run your credit score. Too many inquiries may lower your credit score, and inquiries stay on your credit for 120 days.
If you have any questions, please call us at (903) 581-3900 or fill out the form below. We’re here to help and guide you!