Loan Shopping? Ask the Right Questions

March 9, 2007

There is a great deal of media spin on "sub-prime" lending and "predatory" lending. According to the National Association of Realtors, homebuyers need to ask the right questions when shopping for the least expensive loan. Questions such as:
What is my credit score? Can I have a copy of my credit report?

What is the best interest rate today? Do I qualify?

Is the loan's interest rate fixed or adjustable?

What's the term (length) of the loan?

What are the total loan fees?

What is the total monthly payment? Does this include property taxes and insurance? If not, how much more will I need to pay for taxes and insurance?

Is there an application fee? How much is refundable if I don't qualify?

Are there any prepayment penalties? If so, what are they and how long do they last?

Would you give me a written estimate that includes answers to these questions?

Asking these questions will start you on a path for comparing various loan programs. I would also suggest that you ask your real estate agent about a lender before you commit. They may have had experience with a particular lender and can also advise you as to other pertinent questions. Lois Lauer, Inc. started their own mortgage company in response to some lenders jerking theier clients around. If you decide you must shop for a loan, include Financial 2000 in your pool of lenders. (909) 748-7110.