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Buying & Selling |
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Mortgage Center |
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Relocation Info |
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About Us |
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Questions for Screening
Lenders |
As a consumer
considering the purchase or re-finance of a home, it's important to carefully
consider what lender or loan broker to choose. The questions below are
designed to assist consumers with interviewing a mortgage broker or loan
officer. Consumers have rights and remedies, and they should expect competent,
professional service.
Questions to ask on the telephone
The answers to these questions will help determine which lender to talk
with in person. Talk to several lenders before deciding with whom to work.
However, BEWARE not to submit a loan application with more than one
company. Submitting more than one application can adversely affect a loan
applicant's credit score, which can reduce the amount he can qualify to
borrow, or keep him from being able to get a loan at all.
| 1. |
What is your
experience in placing mortgage loans? |
| 2. |
What specific
training or certification do you have in representing buyers who may
fit into certain special categories, e.g., first-time buyers,
veterans, teachers, police officers, farmers, investors, etc.? |
| 3. |
What are the
best loan programs that you offer? |
| 4. |
What is the
best interest rate you offer right now, at par (with no discount
points charged), and with the origination fee rolled into the loan
amount, on a 30-year fixed-rate loan? |
| 5. |
What is the APR
(annual percentage rate) for the loan whose rate you just quoted me? |
| 6. |
Do you charge a
"credit check fee" or "application fee"? If
so, how much is each of these? |
| 7. |
In what ways
can you assure me that I will avoid the payment of unnecessary add-on
loan expenses or "junk fees"? |
| 8. |
What is the
average time it takes you to close a loan? And how quickly could
you close a loan for me if I submitted my application today? |
| 9. |
What is the
average completion time for the appraisals that your appraisers are
completing right now? |
| 10. |
Are you able to
provide references? |
Questions to ask in person
After screening loan officers over the telephone, ask these questions of any
person still being considered. Some questions repeat what already has been
asked over the phone, but ask the questions again anyway. This will help judge
whether a prospective loan officer has been truthful, and whether he or she is
truly knowledgeable and competent.
| 1. |
What is your
experience in placing mortgage loans? |
| 2. |
What are all of
the mortgage program options available to me? |
| 3. |
What is the
best interest rate you can offer me right now for your best loan
program that would apply to my situation? What is the APR
(annual percentage rate) for that loan, and what kind of loan is it? |
| 4. |
What specific
fees and costs are associated with this loan, and how soon will I
receive a written "Good Faith Estimate" of those costs? |
| 5. |
Do you charge a
"credit check fee" or "application fee"? If
so, how much is each of these? |
| 6. |
In what ways
can you assure me that I will avoid the payment of unnecessary add-on
loan expenses or "junk fees"? |
| 7. |
Will you
explain in terms I can understand the purpose of all my closing
expenses and who receives them as well as an explanation of the fee
amounts you expect to earn? |
| 8. |
Will you
disclose all fees to me that you or your company expect to earn from
placing my mortgage, whether those fees are paid directly or
indirectly by me, and whether they include origination fees, discount
points, premium release fees, service release fees, or other rebates? |
| 9. |
Will you
provide me with a copy of the wholesale interest rate sheet for the
various loans and lenders that are appropriate for me? |
| 10. |
How soon before
closing will you provide me a copy of my "Closing
Statement"? |
| 11. |
How will you
ensure that I will be reasonably protected and informed throughout the
loan process? |
| 12. |
What
recommendations can you give, considering the many loan programs that
are available, that will ensure me the best possible equity position
on a subsequent sale of the home I am financing? |
| 13. |
Will you
automatically give me copies of my credit report and the appraisal
report for the property? How soon after I submit my application will I
receive these? |
| 14. |
Typically, what
property defects or adverse environmental conditions are required to
be repaired as a condition of approving a property for a loan? |
| 15. |
How much money
must I maintain in savings or investments in order to qualify for the
financing you've suggested? |
| 16. |
What other
parties do your lenders allow to pay a portion or all of my closing
expenses? |
| 17. |
Can I use
gifted funds to pay some of my down payment or closing costs? |
| 18. |
What specific
debt, income and asset documentation will you need from me in order to
grant my loan approval? |
| 19. |
What is the
average completion time for the appraisals that your appraisers are
completing right now? |
| 20. |
Will you attend
the closing of my purchase transaction to answer additional questions
about my mortgage obligations and the loan documents I am required to
sign? |
| 21. |
Will you
furnish me a list of past borrowers for reference purposes? |
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