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Questions to Ask When Choosing a Lender

Loan terms, rates, and products can vary significantly from one company to the next. When shopping around, these are a few things you should ask about.

General questions:

  • What are the most popular mortgages you offer? Why are they so popular?

  • Are your rates, terms, fees, and closing costs negotiable?

  • Do you offer discounts for inspections, home ownership classes, or automatic payment set-up?

  • Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?

  • What escrow requirements do you have?

  • What kind of bill-pay options do you offer?

Loan-specific questions:

  • What would be included in my mortgage payment (homeowners insurance, property taxes, etc.)?

  • Which type of mortgage plan would you recommend for my situation?

  • Who will service this loan—your bank or another company?

  • How long will the rate on this loan be in a lock-in period? Will I be able to obtain a lower rate if the market rate drops during this period?

  • How long will the loan approval process take?

  • How long will it take to close the loan?

  • Are there any charges or penalties for prepaying this loan?

  • How much will I be paying total over the life of this loan?

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