Selecting The Right Mortgage Lender

The amount you pay each month for your mortgage depends, in part, on the type of mortgage you select and the current interest rate. But it can also be affected by the lending institution you choose. Even your application fees and closing costs can vary widely from one lender to another.

We will be happy to show you how you may be able to save a substantial amount of money by selecting the right combination of rates, terms and closing costs tailored to your individual needs.

To get a better idea of what different lenders in your area offer, use this checklist as a comparison guide. Once you’ve compared, we’re confident that you will find we really do have the right mortgage plan for your needs.

For each mortgage option the lender offers, ask the following questions:

• What are the qualifying criteria? FICO Score? Dcumentation Required?
• What is the amount of loan I can obtain?
• How much down payment is required?
• What it the interest rate, what is the APR?
• What will my monthly mortgage payment be?
• Does my payment include a mortgage insurance premium?
• Can the interest rate change during the term of the loan?
If so, how often?
How much can it change?
What index is the interest rate tied to?
What is the margin?
How will an increased interest rate affect my monthly payment?
• Can the original term of the loan be extended?
• Will I be required to pay into a special escrow account each month to cover taxes and insurance?
• What will my total interest costs be over the life of the loan?
• How much is the loan application fee?
• Is there a loan origination fee? If so, how much is it?
• Are there any points? Are they paid by the buyer or seller?
• What other closing costs will be charged?
• Will I be required to carry life or disability insurance from a particular company?
• Is there a late payment charge on monthly payments?
• Is there a prepayment penalty if I want to pay off the loan in advance of maturity?
What are the terms of the penalty?
• can the loan be assumed? If yes:
o will the lender release me from personal liability when my loan is assumed by someone else?
o Will the lender have the right to raise the interest rate or charge an assumption fee?
• Will the terms of the loan permit me to borrow additional money on the mortgage after I have paid off part of the original loan?
• How long will it take to get my loan approved?
• Who will handle the ongoing servicing of my mortgage?