Ten Questions to Ask Your Lender
- What are the most popular mortgage loans you make and why?
- Which type of mortgage programs do you think would work best for us and why?
- Are your rates, terms, fees and closing costs negotiable?
- Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required?
NOTE: Private mortgage insurance is usually required if you make less than a 20% down payment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.
- Who will service the loan, you or another company?
- What escrow requirements do you have?
- How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during the period?
- How long will the loan approval process take?
- How long will it take to close the loan?
- Are there any charges or penalties for prepaying then loan?
Ten Things a Lender Needs From You
- W-2 forms, or business tax returns if self-employed, for the past two to three years for each person signing the loan.
- Copies of at least one pay stub for each person signing the loan.
- Copies of two to four months of bank or credit union statements for all checking and savings accounts.
- Copies of personal tax returns for the last two to three years.
- Copies of your most recent 401(k) or other retirement account statement. Copies of investment account statements for the past two to four months, as well as a list of any other major assets of value, e.g., boat, RV, or stocks/bonds not held in an investment account.
- Documentation to verify additional income, such as child support, alimony or pension.
- Account numbers of all of your credit cards and the amount of any outstanding balances.
- Lender, loan number, and amount owed on other installment loans such as car or student loans.
- Address of where you have lived for the past five to seven years, with the names of landlords (if applicable).
- Photo identification and Social Security Number.