Questions You Should Ask Prospective Loan Providers
Mortgage - Questions you must ask every provider about every loan when you are shopping. Permission is hereby granted to print this out and use it for non-commercial purposes so long as no alterations are made and copyright is preserved.
(Disclaimer: This list is trying to be as exhaustive as possible, but is likely missing some important questions. If you have one that I missed, send it to me: dm at )
Is there a prepayment penalty?
If so, for how long and under what terms?
What is the interest rate?
What is the amortization period?
Is there a possibility that the note will be due in full before the amortization pays it off? (Vaguely equivalent to "is there a balloon?" but a broader question)
Is the payment interest only, or principal and interest?
(if interest only) how long is it interest only, and what happens afterward?
Is there any possibility of negative amortization (the balance increasing) if I make the minimum payment? (See my post on the Negative Amortization Loan linked at the bottom of this article)
Is the nominal rate different from the real rate of interest I would be charged?
How long is the rate fixed for?
(If fixed for less than the full period of the loan) What is the rate based upon when it adjusts, what is the margin, and how often does it adjust?
What is the industry standard name for this loan type?
Is the rate you are quoting me based upon full documentation, stated income, NINA or EZ Doc?
(If full or EZ doc) Assuming I have other monthly payments of $X (where $X is your other monthly payments), how much monthly income do I have to document in order to qualify? (If this is more than you make, Warning!)
How many points TOTAL will I have to pay to get that rate.
How many points of origination will I be charged?
How many discount points will I have to pay?
What are the closing costs I will have to pay?
(because they are allowed to omit third party costs from all estimates and totals, you must add the answers to the next three questions to the previous question unless the provider specifically includes them)
How much will the appraisal fee be?
How much will total title charges be?
How much will the escrow fee be.
Who will my title company be?
Who will my escrow company be?
(If escrow company is not owned by title company, i.e. same name, be prepared for unknown additional title charges).
How much, total, will I be expected to pay out of my pocket?
How much, total, will be added to my mortgage balance?
With everything added to my mortgage balance, what will my payment be?
How long of a rate lock is included with this quote?
What do you need in order to lock this loan?
If I say I want this right now, will you personally guarantee this rate with those closing costs, and will you cover the difference (if any) between the quote and the actual final cost?
If you don't deliver this loan to the specifications you indicate, will you promise in writing to release the appraisal so that I don't have to pay for two appraisals?
-------------
After you have finished talking to this person, go check out the numbers. If you have a calculator that can handle mortgage calculations, use it. If you're able to do the calculations yourself, even better. Otherwise, do a web search for payment calculators or mortgage calculators or amortization calculators, and try out a couple of different ones (because some web calculators on lenders sites are programmed to lie!). This is math - there is only one right answer! The numbers should come out the same except for rounding errors! If the difference is more than five dollars in any case, that's a red flag! (You should also make certain the reason for the difference is not operator error. For instance, automobile payment calculators assume a different first payment than mortgage calculators, but student loan calculators should be compatible with mortgages.)
Original here
Categories
Mortgages9 TrackBacks
Listed below are links to blogs that reference this entry: Questions You Should Ask Prospective Loan Providers.
TrackBack URL for this entry: http://searchlightcrusade.net/mt/mt-tb.cgi/2735
Mortgage - Questions you must ask every provider on every loan. (This list is trying to be as exhaustive as possible, but is likely missing some important questions. If I missed one, send it to me: dm at ) What... Read More
Two absolutely vile things in the mortgage field that I've heard with my own ears in the last few hours (I'm setting this to post on Monday, but you get the idea). The first, a radio ad, hyping a loan... Read More
i was sold a bad home mortage who do you talk to That was a search I got the other day. The answer depends upon where you are in the process. If you've just applied, not yet signed the... Read More
Not interested? Most people aren't when it's talking about how they got taken advantage of in the past. First off, it's in the past so it is over and done with, and there's no use dwelling on it, right? Second,... Read More
i was sold a bad home mortage who do you talk to That was a search I got the other day. The answer depends upon where you are in the process. If you've just applied, not yet signed the... Read More
That question brought someone to the site. The answer is "Yes, they can". As a matter of fact, just because they have you sign those documents does not in any way obligate that lender to actually fund your loan. There... Read More
Once we figure out when we are going to be ready to buy, how early is too soon to get a buyer's agent and start looking. You are ready for a Buyer's Agent when you are ready to act... Read More
I'll keep hitting this and hitting this until everybody understands this critical point. From email: First of all, I love your website. It is just a plethora of information for first time buyers like me who wants to be an... Read More
Right now X is offering me a loan that looks something like this: 80/20 No down payment On the /80: 6.5% FIXED interest for 30 years, interest-only payment option for 15 years On the /20: 8.75% FIXED interest for... Read More
blog advertising
--Blogads--
blog advertising --Blogads--
My Links
-
Heavy Lifters
- Instapundit
- Michelle Malkin
- Scrappleface
- Volokh Conspiracy
- Captain's Quarters
- Wizbang
- Victor Davis Hanson
- Eject! Eject! Eject!
- Michael Barone
- The Victory Caucus
- The Truth Laid Bear Places I get to as often as I can
- The Command Post
- Good News Central
- Icerocket
- Life Liberty Property
- MEMRI
- Raging RINO Community
- Technorati
- Transparency International
- Wide Awakes
- The Anchoress
- Argghhh! R
- Armies of Liberation R
- Asymmetrical Information
- Austin Bay
- Belmont Club
- Big Lizards
- Tim Blair
- Cox and Forkum
- Dr. Sanity
- Kevin Drum
- Gateway Pundit
- Hugh Hewitt
- Iraq the Model
- Jeff Jarvis
- Jihad Watch
- John Leo
- Lileks Screed
- Little Green Footballs
- Josh Marshall
- Mudville Gazette
- Neo-neocon
- WSJ OpinionJournal
- Politburo Diktat R
- Powerline
- Powerline News
- Protein Wisdom
- Q and O L
- Real Clear Politics
- Mark Steyn
- Stop the ACLU
- Strategy Page
- Don Surber R
- Vodkapundit
- Watching America
- Matthew Yglesias
- Michael Yon Personal Finance, Economics and Business Sites
- Bloodhound Blog
- Consumerism Commentary
- Eidelblog L
- The Entrepreneurial Mind
- Finance Blog
- Financial Rounds
- Free Money Financea>
- In Cash Flow We Trust
- I Will Teach You To Be Rich
- Mortgage Fraud Blog
- No Credit Needed
- Old Niu's Blog
- Pacesetter Mortgage Blog
- Personal Finance Advice
- pfblogs.org
- Social Security Choice
- Students for Saving Social Security Other sites I've linked and visit
- Accuracy In Media
- Ace of Spades
- The Agitator
- All Things Jennifer R
- Ann Althouse
- American Citizen Soldier
- The Anarchangel L
- Angry in the Great White North L
- Antigravitas L
- The Anti Idiotarian Rottweiler
- Art of the Blog R
- Atlas Shrugs
- aTypical Joe R
- Professor Bainbridge R
- Baldilocks
- Barcepundit
- Beldar
- Belgravia Dispatch
- Below The Beltway L
- Blackfive
- The Buck Stops Here
- Catallarchy L
- Chapomatic
- Chequer-Board of Nights & Days
- Clarity and Resolve
- Classical Values R
- Combs Spouts Off L
- Common Sense and Wonder
- The Counterterrorism Blog
- Countertop Chronicles R
- Coyote Blog
- Daily Howler
- Daily Pundit R
- David's Medienkritic
- Dean's World R
- Decision '08 R
- De Doc L
- Brad DeLong
- Democratic Peace
- Different River
- Digger's Realm R
- Done With Mirrors R
- Drink This
- Drudge Report
- DUmmie FUnnies
- enrevanche R
- Eschaton
- Evolution R
- Fearless Philosophy L
- Forward Biased L
- Generation Why?"
- Happycrow's Eyeball Factory L
- Hold The Mayo L
- Huffington Post
- The Idiom
- IMAO
- INCITE L
- INDC Journal R
- Inside Larry's Head R
- Inoperable Terran
- Iowahawk
- It Comes In Pints?"
- The Jawa Report R
- Just One Minute
- Justus for All R
- Kausfiles
- Ezra Klein
- Daily Kos
- La Shawn Barber
- Liberals Against Terrorism
- Libercontrarian RL
- Libertarian Leanings R
- Liberty Papers
- Carol Platt Liebau
- Llama Butchers R
- Mensa Barbie
- The Moderate Voice
- Mossback Culture R
- Mover Mike L
- Mr. Completely L
- National Review Online
- No Angst Zone L
- Normblog
- Brendan Nyhan
- Ogre's Politics & Views L
- One Fine Jay R
- Owlish Mutterings L
- Patterico's Pontifications
- Peter Porcupine L
- Bradford Plumer
- Pole Dancing In The Dark L
- Political Calculations
- POV R
- Publius Pundit
- Radio Equalizer
- Reasoned Audacity
- Respectful Insolence R
- Rhymes with Right L
- Riehl World View
- Right Place
- Right Reason
- Right Thoughts R
- Right Wing Death Beast
- Right Wing Nut House
- ROFASix
- Samizdata
- Say Uncle RL
- Debbie Schlussel
- SCOTUS Blog
- Roger L. Simon
- The Strata-Sphere R
- TacJammer
- TalkLeft
- TAPPED
- Target Centermass L
- Technography R"
- Tempus Fugit
- Texas Best Grok L
- Tigerhawk
- Link Text
- Tinkerty-Tonk R
- Tom Rants RL
- Unalienable Right
- Uncommon Insanity L
- Unrepentant Individual L
- Villainous Company
- Oliver Willis
- Willisms
- The World According to Nick R
- World Wide Rant R Link Exchanges, etcetera
- But That's Just My Opinion
- Condo Buzz NYC
- Crazy Rants of Samantha Burns
- DANEgerus R
- A Dollop of Sour Cream
- Dust My Broom L
- Generic Confusion R
- Grim's Hall
- Heartless Libertarian L
- individ L
- Kesher Talk R
- Leaning Toward The Dark Side R
- Libertopia L
- Liberty Corner L
- Medary L
- Mondo QT L
- Nose On Your Face R
- Pererro R
- Pratie Place
- Random Fate R
- Ravings of John C. A. Bambanek L
- Signifying Nothing R
- The Skwib L
- Tel-Chai Nation
- TF Sterns Rantings L
- DC Thornton R
- Wake Me Up On Judgement Day R
- Windypundit L Consumer and Research Sites
- Better Business Bureau
- Consumer Reports
- NASD Home
- California Department of Real Estate
- California Licensee Lookup
- California Department of Insurance
- National Association of Insurance Commissioners (NAIC)
- Do Not Call Homepage
- IRS Charities Search
- Internet Fraud Complaint Center
- SEC Home Page
- Stop Mortgage Fraud
- Report Mortgage Fraud Debunking Many so-called Real Estate Gurus
- John T. Reed Other research
- FactCheck.org
- Babel Fish Translation
- Snopes Worthwhile Web Comics
- Sluggy Freelance
- Day by Day
- User Friendly
- Kevin and Kell It is site policy to list the main page of every site I reference. Sometimes the real world intervenes and I haven't gotten to it yet, or one falls through the cracks on a long post with multiple references. It is also site policy to list the main page of every site that lists this one on their equivalent roll, as well as the main page of all sites that are members of any of the same groups this site is a member of. Please send me an email with a link to the main page of your site if I've overlooked you (dm at the domain name). For the clue-challenged, note that it is a requirement for your link to appear on every page of your site, just like mine does, and I will not link to spam sites. Honor Roll of Sites Banned by Paranoid Repressive Governments: (be the first on your block to submit a link!)
Requests for reprint rights, contact dm (at) searchlightcrusade (dot) net! Subscribe to Searchlight Crusade
C'mon! I need to pay for this website! If you want to buy or sell Real Estate in San Diego County, or get a loan anywhere in California, contact me! I cover San Diego County in person and all of California via internet, phone, fax, and overnight mail.
**********
Contact me! dm (at) searchlight crusade (dot) net (Eliminate the spaces and change parentheticals to the symbols, of course)
Leave a comment