Important Questions To Ask

The questions you need to ask when looking for a mortgage

When obtaining a mortgage and working with a loan officer asking the right questions is important.  But what are the right questions?  Below are some important questions to ask when looking for a new mortgage loan:

1. Will this rate or payment ever adjust and if so when?

2.  Will my mortgage balance ever increase?

3.  What are the total fees?  Never just ask are there any points?  I’ve seen what some loan officer claim as zero point loans and the loan has more fees than a traditional 1 point loan has.  You want to ask what is the total fee for the loan including everything possible.

California Home Loan Term:  An Acknowledgement form is a signed statement, done before a notary, by a person confirming the signature on a loan document and that it was made by the person’s own free will.  Call JB Mortgage Capital, Inc. at 1-800-550-5538 if you have any questions.

4.  Does the loan have any pre-pay penalty and if so for how long and how much?

5.  When will the loan officer rate lock?

6.  What could change this rate you’ve quoted?  This is an important question because there are legitimate reasons a rate could change. However loan officers tend to abuse this and start making things up.  Things that typically affect a rate are:  Your appraisal might come in low, you have a Debt-To-Income (DTI) ratio that is too high, and you don’t have enough liquid assets.

7.  When receiving a quote ask what the loan is being based on:

a. What is the max Debt-To-Income ratio?

b. What is the appraisal amount you are estimating?

c. Is this a Full Documentation Loan, Stated Income Loan or No Documentation Loan?

d. Do I need assets to get this loan and how much?

8.  When will you send out a Good Faith Estimate?  Never proceed with a loan or do an appraisal without this.  Never.

9.  Who is the lender for the loan?

10.  How long will it take to get an approval and close the loan?

These questions will help you find the best mortgage out there. Also, never hesitate to ask a question even if you think you know the answer.  A good way to find out if your working with someone you can trust is re-ask the same questions about your mortgage and if the answers start changing there might be cause for concern unless there is a legitimate reason (such guidelines for the loan changed or the bank no longer offers the loan on those terms).