Questions to ask your broker, part 1 of 3
“So what is your rate?” we have all heard that before. “I just need to know your rate.”
Customers don’t know the questions to ask, so they think they should be asking what is your rate. Rate isn’t the only question they should be asking. There are loads of questions that a customer should ask me a possible broker for their loan other than my rate.
So what are some good questions to ask me, other than my rate, becuse I won’t answer that question for you until I know that the rate I quote you will apply to you and your situation?
1. Does my loan have a pre-payment penalty, or an early closure fee? What is it, and how is it calculated? How long does it apply? Does it apply just if I refinance, or also if I pay off this loan to buy a new house?
2.. Does my loan have the ability to be re-cast if I put a large amount down on the principal so I can keep the same low interest rate yet enjoy the reduction in monthly payment?
3. Does my loan allow me to set my own due date each month?
4. What is your yield?
5. What will my payment be and can it change? If so, how and how often? (What is the worst case scenario?)
6. Please explain my good faith estimate so that I can understand it.
7. What are the total fees associated with the loan, not just lender, or legal?
8. Do you guarantee your closing cost? If so, how, and what fees do you guarantee?
9. What will the taxes and insurance be? (How often do they get paid?)
10. How does my credit score affect my loan rate and term?
11. I only plan to live in my house for ___ years, is the same loan the best loan for me?
12. Can I be pre-approved prior to purchasing the property? What is the difference between pre-approved and pre-qualified?
13. What is the A.P.R. on my loan? I don’t really understand what an A.P.R. is, can you explain it to me?
14. When is my rate locked? How long is the lock? What happens if rates go down between now and closing? Will you provide me with a signed rate lock agreement outlining the terms of the lock?
