When talking to a mortgage banker prior to making an application, it might be helpful to have he answers to the following questions in order to make an informed decision.
- Will this loan be sold on the secondary market or will it be placed in your portfolio?
- If private mortgage insurance is required, at what point will it be unnecessary so that it can be dropped?
- When does the servicing department pay the property taxes to insure the income tax deduction for that year?
- How many months worth of property taxes and insurance are required for the reserve account?
- If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charges will be involved. Will another appraisal be required?
- If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments?
- When is the house payment due and when is the late fee incurred? What is the late fee?
- What is the up-front charge for private mortgage insurance and the renewal?
Buyers will be tempted to go on-line to price interest rates and terms. I have had the misfortune twice of clients who priced and got mortages on line from companies located out of state (and often, out of mind). Sounds great but when it comes time to close,- there are almost always problems. The best person(s) to talk to about your loan is a company or agent who your realtor or a friend has had personal experience with and knows that they will follow through beyond the initial great rate and promises. Most lenders use the same sources. The differences come in delivery and in closing fees. That said, a few lenders will have their own funds to lend or a handful of investors that provide them the backing to make loans without outside approvals.
A couple of suggestions:
Matt Pizette – Home Services Lending
Cell: 214-914-1818, Office: 214-302-5622, MattPizette@homeserviceslending.com
Rate snapshot (contact Matt for specifics)
Scott Moize – Great Western Home Loans
Cell: 214-755-7307, smoize@gwloans.com
Brian Jordan – First National Bank
Cell: 469-212-0228, brian@brianjordan.com
