What to ask a mortgage loan broker?


Get ready with a whole lot of questions to ask a mortgage loan broker. Borrowers should be prepared when shopping for a loan, especially if they intend to stay with it for 20 or more years.

What to ask a mortgage loan broker?

Ask them about different loan types. Explain what you want, your desired home and loan amount, tell them about your financial situation and require that they explain the pros and cons of different loan types to you - ARMs, FRMs, FHA loans, etc.

If you know you are getting an adjustable rate mortgage (ARM) make sure you ask about the index, its volatility, the ARM caps. APR cannot be calculated properly for an ARM, but different scenarios (worst case included) may give you an idea what to expect if the rate changes.

Ask the mortgage broker for the closing costs on the GFE - how stable they are. If they refuse to guarantee their closing costs, you might as well consider another lender. If you like the rates you are offered, ask for a lock that guarantees both loan rates and closing costs.

The mortgage brokers should explicitly be asked about prepayment penalties and any demand feature. They are paid more when selling loans on the secondary market if they slipped in such provisions.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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