Real Estate Tips
These tips and reports will help you step-by-step through the buying process. We hope you find this information useful. We will email these reports and any others that you may like instantly by just submitting the form below!
Questions For Your Lender
The following are some good questions to discuss with your lender when applying for a home loan:
Are both fixed-rate and adjustable mortgage loans available?
- What is the interest rate?
- How long can I "lock-in" the financing at the current interest rate?
- Is a float down lock available in case rates drop after I have locked in?
- What are the other fees a lender may charge me in conjunction with my loan?
- Are funds for a second mortgage available?
- On adjustable loans, how often will the interest rate be adjusted?
- Is there a maximum limit on each rate change?
- How often will the monthly payment be adjusted?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?
- What is the maximum rate that can be charged over the life of the loan?
- Is there any potential for negative amortization?
- Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
- What is the "grace" period?
- How late can a monthly payment be made before a late charge is assessed?
- What will happen if a payment is missed?
- If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
- Do you have to pay "points" to get your new mortgage?
- Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
- Will the lender require mortgage insurance?
- Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".
Mortgage Application Checklist
The following are some items you should have with you when applying for a mortgage:A Copy of your Purchase & Sale Agreement.
- Your present mortgage information.
- Two-year history of employment and verification of all income sources.
- If self-employed, copies of past two years Federal Income Tax Returns.
- Information about your checking, savings and credit card accounts.
- Name, account number and outstanding balance of each of your debts.
- Application deposits.
- Information about any assets, including information regarding any other assets that will be used as funds to close.
- If FHA - Copy of Social Security card and photo ID.
- If VA - Certificate of Eligibility or DD214If Employee Relocation Client.
- Include relocation information and copy of offer, promissory note and copy of check on bridge loan.
