QUESTIONS TO ASK LENDERS

Your relationship with a lender can potentially last 30 years.  That's a long time to be unhappy.  To find a lender and loan that fits your needs, ask lenders:

1. What are your 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 costs 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 the change.   Lenders are required to cancel your PMI only when you reach 22 percent equity.

5.  Who'll service the loan--your bank or another company?

6. What escrow requirements do you have?  What form does the money have to be in?  How many days in advance of closing does the money have to be deposited?

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 prepaying the loan?

LENDER LIST