Questions to ask when selecting a lender…

Loan terms, rates, and products can vary significantly from one company to the next. When shopping around, these
are a few things you should ask about.   I strongly recommend a local lender for lease land purchases.  Do you need a recommendation for a lender in the Palm Springs area?  Just ask me and I’m happy to share some names of ones who have been especially good with my clients to work with.
General questions:
  1. What are the most popular mortgages you offer? Why are they so popular?
  2. Are your rates, terms, fees, and closing costs negotiable?
  3. Do you offer discounts for inspections, home ownership classes, or automatic payment set-up?
  4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?
  5. What escrow requirements do you have?
  6. What kind of bill-pay options do you offer?
  7. Have you ever worked with the Bureau of Indian Affairs (BIA) in California?
Loan-specific questions:
  1. What would be included in my mortgage payment (homeowners insurance, property taxes, etc.)?
  2. Which type of mortgage plan would you recommend for my situation?
  3. Who will service this loan ‒ your bank or another company?
  4. How long will the rate on this loan be in a lock-in period? Will I be able to obtain a lower rate if the market rate drops
  5. during this period?
  6. How long will the loan approval process take?
  7. How long will it take to close the loan?
  8. Are there any charges or penalties for prepaying this loan?
  9. How much will I be paying total over the life of this loan?
courtesy of National Association of Realtors
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