Ask your lender these comprehensive questions:
- What are the most popular mortgage loans do you make? Why?
- Which type of mortgage plan do you think would work best for us? Why?
- Are your rates, terms, fees, and closing costs negotiable?
- Will I have to buy private mortgage insurance? If so, how much will it cost me and how long will it be required? NOTE: Private mortgage insurance is usually required if you make less than a 20% down payment, but most lenders will let you discontinue the policy when you have acquired a certain amount of equity by paying down the loan.
- Who will service the loan? Your bank or another company?
- What escrow requirements do you have?
- How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during the period?
- How long will the loan process take?
- Are there any charges or penalties for prepaying the loan?
- How long will it take to close the loan?
Once you have decided which lender to use it is time to gather up the things a lender needs for you.