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QUESTIONS TO ASK A MORTGAGE BANKER
When talking to a mortgage banker prior to making an
application, it might be helpful to have the answers to the
following questions in order to make an informed decision on
which lender to choose
- Will this loan be sold on the secondary market or will it
be placed in your portfolio?
- If private mortgage insurance is required, at what point
will it be unnecessary so that it can be dropped? What
are those steps.
- When does the servicing department pay the property taxes
to insure the income tax deduction for that year?
- How many months worth of property taxes and insurance are
required for the reserve account?
- If obtaining an adjustable rate mortgage, describe how
and when the loan can be converted to a fixed rate
mortgage and what charges will be involved. Will another
appraisal be required?
- If obtaining an adjustable rate mortgage, what is the
margin, index, and anniversary for adjusting the
payments?
- When is the house payment due and when is the late fee
incurred? What is the late fee?
- What is the up-front charge for private mortgage
insurance and the renewal?
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