Five Questions You Must Ask Your Mortgage Loan Officer

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When trying to get approved for a mortgage loan, it is important to be as prepared to make the mortgage process as easy as possible. There are five basic questions you should ask your loan advisor to make sure that you are getting the best possible loan and to make sure that your mortgage will close on time.

What Is The Mortgage Program I Am Applying For And What Are The Terms Of The Mortgage?

There are many different types of home loans and when qualifying for a home loan, you need to know if you are trying to qualify for a VA, FHA, Conventional or any other type of loan program. Each program has different requirements when it comes to down payment, job history and credit score. Also, you need to ask your mortgage consultant what the term of the loan will be. Are you applying for a fixed rate mortgage? Do you want a 15-year note or a 30-year note? Knowing the term of the loan and theloan program can make the process move quicker.

Are There Any Upfront Fees Associated With The Loan?

Some mortgage lenders require an application deposit before taking your home loan application. Sometimes, these deposits are nonrefundable. These deposits can increase your total closing cost. Most mortgage lenders will require customers to pay for the appraisal, which is a common practice. Be prepared to pay for the appraisal, but there are several lenders who do not ask for an application deposit.

What Is The Rate and Fees For My Home Loan?

It is important to know the mortgage rate and the closing cost connected with the mortgage loan. When comparing home loan offers, it is important to only compare the fees the mortgage lender controls. These are called lender fees and they will make up section A of the Good Faith Estimate or on the HUD-1 form, these will be the fees in the 800 section. Common lender fees are processing, underwriting, loan origination fee, application fee, discount points and document preparation.

To compare offers, see what the total lender fees are and the rate of the loan. For example, if one lender is charging $2000 in lender fees are a rate of 4.25% and another lender is charging $1500 for the same rate, obviously the second lender is cheaper.

What Are The Mortgage Turn Times?

Sometimes getting the lowest rate and lowest closing cost is not always the better deal. Mortgage companies that charge less cannot always close your loan on time. The service you will receive from a company that is the lowest in price might not be the same from another company that is a little higher in closing cost. Think of it this way, do you expect to get better service from Wal-Mart or Macy’s?

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