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Mortgage - Things To Discuss With A Mortgage Lender Rep When you sit down to discuss your financing options for the purchase of a property, you might quickly obtain lost in the verbiage including minutia of finance. Here are some things you need to make sure you address. First including foremost, it is important to understand something regarding trying to obtain financing. The representative for a bank or other lender is interested in getting you as a client, not necessarily getting you the best deal. If you need someone to hunt for the best deal for you, you need to speak with a particular independent mortgage broker. Regardless, a bank rep is going to be sizing you up as a potential customer, not determining the cheapest possible financing package for you. Given the somewhat cynical, but true, view, you need to make sure you address some key points at the time you speak with them. 1. Points – Points might be a killer if you are not prepared for them. Lenders make dollars on points as nearly pure profit. They need to charge them if at all possible. A point represents 1 percent pertaining to the total loan value. at the time discussing their various loan packages, find out if they expect you to pay points. Try to find a lender that does not. 2. Prepayment Penalties – Most lenders use teaser rates to obtain you into a loan. In practical terms, the means the payments for the first few years are low. After that, they bump up to less attractive amounts. You might need to refinance at that point, but the lender might slip in some expensive prepayment penalties. Always avoid these whenever possible, so make sure to ask regarding them. 3. Down Payment – Find out the lender requirements on down payments. Many just spit out a 20 percent down payment. Others could require less, from 10 percent on down. Depending on your finances, you usually could need to find a lower down payment amount. Regardless, just make sure you clearly understand what is expected from you. 4. Fees – Think banks charge you incessantly for using your bank account? Those fees are nothing compared to what they could hit you with on a mortgage. obtain a particular estimate pertaining to the fees including exactly what “Services” you could be charged for. You don’t need to be rushing around at the last moment trying to come up with cash to pay them. 5. Monthly Payments – the may sound obvious, but you need to obtain a particular estimate pertaining to the monthly payments for the loan. You additionally need to ask what exactly is included in that payment amount. Does it include property tax payments? How regarding private mortgage insurance? You actually need to know the total payment you have to make, not just the amount due on the basic loan. These represent the major points you need to address with a lender rep. Obviously, each situation is different, so give some thought to information you need for your situation before going in. Gaining as much information as possible is the key to getting the best loan.
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