Cynthia Szoradi

Push to Talk

Questions for your Lender

One of the most difficult tasks of buying a home can be navigating the loan process. A small misstep can end up costing you more than you realize over the life of your loan. To protect yourself, learn the facts about the types of loans available to you. Here are a few helpful questions to ask of your lender:

What types of mortgage loans do I qualify for? Fixed-rate? Adjustable?

What is the interest rate?

What is my timeframe for "locking-in" the financing at the current interest rate?

If rates drop after I have locked in, is a float down lock available?

If I need to take out a second mortgage, are funds available?

What other fees might I be charged in conjunction with my loan?

About adjustable rate mortgages:

• How often will the interest rate be adjusted?
• Is there a ceiling on each rate change?
• How often will the monthly payment be adjusted?
• Is there a cap on payment adjustments?
• Can I extend the term of the loan?
• What is the maximum rate I can be charged over the life of the loan?
• Is there any potential for negative amortization?

Is there a penalty clause for pre-payment? (These are additional charges for paying of the loan in full before its maturity. About 80% of all loans in the United States are paid off early.)

How late can my monthly payment be sent out before I receive a late charge? What is the "grace" period?

What happens if I miss a payment?

Do I need to buy mortgage insurance?

Can my mortgage be assumed by the buyer at the same interest rate if I sell my house?

Will you service my loan locally or will the servicing be sold?