Your relationship with a lender can potentially last 30 years. That is a long time to be unhappy. To find a lender and loan that fits your needs, ask lending companies:
1. What are the most popular mortgage loans you make? Why?
2. Which type of mortgage plan do you think would suit us? Why?
3. Are your rates, terms, fees, and closing cost negotiable?
4. Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? PMI is usually required if you put down less than 20 percent. Most lenders will let you discontinue the policy when you reach 20 percent equity by paying down the loan. But you'll likely have to initiate that change. Lenders are required to cancel your PMI only when you reach 22 percent equity.
5. Who will service the loan- your bank or another company?
6. What escrow requirements do you have? Example: days in advance of closing that money has to be deposited; form money must be in, such as cashiers check.
7. How long is your lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if rates drop during this time?
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 pre-paying the loan?
