Top Questions to Ask a Mortgage Lender
Questions for the lender
Are you licensed by the state?
How long have you been originating loans?
Whom do you represent—a bank, broker, finance company?
What types of loans do you offer?
For a reverse mortgage, who will I work with after closing?
What are the loan application/approval process fees?
Are you going to hold this loan or sell it?
How do you keep my personal information secure?
Will you sell my information?
How can I reach someone after hours?
Questions for the mortgage brokers
How do you get paid?
How much will you make on this loan?
Who are the top lenders that purchase loan applications from you?
Questions about loan rates
What interest rate are you offering, and how did you arrive at it?
Is this the best rate you can give me?
How will the rate change over the life of the loan?
What is the highest my ARM (adjustable rate mortgage) rate can go?
How long will you lock in my rate? What does the lock cost me?
Can you explain an annual percentage rate (APR)? What is it for this loan?
Questions about loan costs
Will you give me a fee sheet or estimate of funds to close?
Will you explain my good faith estimate (GFE)?
What am I paying in points?
What are my monthly payments?
Do I need to pay private mortgage insurance (PMI)?
Are there any prepayment penalties on this loan?
How long will the loan take to close?