Mortgage Company Quizzing Here are the Questions You Need to Ask

If you process of finding a mortgage there are three important questions you need answered. Here are the questions you need to quiz your lender on.

Mortgages can be the most intimidating aspect of home ownership. As a homeowner it is easy to second guess your decisions; part of choosing the right mortgage is knowing the right questions to ask. Here are the questions you need answered.

Dont accept a mortgage with a prepayment penalty. Plain and simple, unless you have really bad credit your should be able to negotiate for a mortgage that does not have a prepayment penalty. Prepayment penalties serve to boost the lenders income if you refinance or sell your home. In todays mortgage market lenders are having to concessions in order to remain competitive. Because of this much of your mortgage is subject to negotiation. Do not settle for a loan with a prepayment penalty unless you absolutely have to. Accepting a loan with this penalty could cost you as much as six months worth of interest on 85% of the original loan balance if you refinance or sell your home.

Interest rates fluctuate on a weekly basis. The rate your lender quotes you could easily change from one day to the next. Ask your mortgage lender to lock in the interest rate quoted to you. Make sure the lender grants you enough time to close on the mortgage and that there is no fee for guaranteeing this interest rate. While youre at it, ask the lender to lock in the points required to secure the guaranteed interest rate.

You want to close on the mortgage as quickly as possible to ensure you do not lose the guaranteed interest rate. Documentation is one aspect of the loan that could delay your closing. If the lender requires an appraisal or a survey make sure you have all of the required documentation in hand well before closing. If you are unable to provide all the necessary documentation before the expiration of the lock period you could lose your ideal interest rate.

To learn more about finding the perfect mortgage, sign up for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the links below.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages Refinance Advisor, a mortgage help site devoted to saving homeowners money with a free guidebook Mortgage Refinance: What You Need to Know.

See Also:

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...

Types of Loans
Loan Types What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the ... more...

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK
Add the term online and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire ... more...

Lowest Mortgage Rates UK Lowering the Cost of Mortgage
Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time ... more...