What questions should you ask your Lender?

When you’re meeting with a lender, it’s crucial to come prepared with questions that will help you understand the terms of the loan, your responsibilities, and how the process works. Here’s a list of questions that you might find helpful:

1. What types of loans do you offer and which one would you recommend for my situation?
2. What is the interest rate and the annual percentage rate (APR) of the loan you’re suggesting?
3. Are the rates fixed or adjustable? If they are adjustable, how will rate and payment changes be determined?
4. How much down payment is required for the loan?
5. What are the requirements to get the best interest rate and/or loan amount?
6. Can you provide a good faith estimate for the loan costs, including fees and closing costs?
7. How long will the loan approval process take?
8. What documentation will I need to provide to secure the loan?
9. Will I be penalized for paying off my loan early?
10. Can you lock in the interest rate, and if so, when and for how long?
11. What are the closing costs, and can any of these costs be rolled into the mortgage?
12. Does the loan include a prepayment penalty clause?
13. What will my monthly payment be, and what does it include (e.g., insurance, taxes)?
14. Are you able to handle underwriting in-house?
15. What might delay my approval for a loan?

Remember, the more information you can gather, the better prepared you’ll be to choose a mortgage that fits your needs and budget.