Wednesday, December 07, 2011

Questions to ask before buying house


Information about Lender:
  • Does getting a good interest rate depends on excellent credit rating?

  • What are the different steps involved in the process of pre-approval?

  • How much time will it take to complete the process of pre-approval?

  • Is it allowed to Lock-In the interest rate while buying a home?

  • Till what time is the Lock-In best for?

  • Till what time is the Lock-In best for?

  • What will happen if the interest rate goes down before a deal is closed?

  • After approval of a loan, will you provide a written commitment?

  • What are the documents needed at the time of loan approval?

  • How much time does a loan takes to get approved?

  • How long will it take to close the loan after getting approved?


About Loan Process:
  • If needed, can you process the loan faster?

  • Where is the mortgage loan processed?

  • What is the total time required to process a mortgage loan?

  • Can the Lock-in also be extended if closing gets delayed?

  • Are the latest updates on loan processing available?

  • How long does it take to get a loan approved?

Analyze your Financial Situation:
  • Do you offer any special programs with lower interest rates or reduced closing cost for the first time buyers?

  • How much of a loan amount can be borrowed on a mortgage?

  • What can be done to fix the past credit problems?

  • What can be done to qualify for the required loan?

Points and Fees:
  • Is the originating fee a part of the closing costs?

  • When can the Interest Rate and Discount Points be locked?

  • How long is the Lock-In period valid for?

  • What is the durability of the point's quote that was given by you verbally?

  • What will be the total of closing costs?

  • How much do you charge as junk fees?

  • How many days of interest are figured by you in prepaid?

  • Can any of the fees be negotiated at the time loan process?

  • What are the fees that need to be paid at the time of application?

  • Are the credit report fee and the appraisal fee needed to be paid at the time of application?

  • What will be the principle amount and its interest that needs to be paid every month?

  • Is there any extra fee that needs to be paid if the rate goes down?

  • Can the fixed rate be converted without refinancing, if yes what is the conversion fee?

  • Can a loan be pre-paid at any point of time?

  • Is there any pre-payment penalty associated with this loan?

Home Owner Insurance:
  • Do you think that an individual inspection is required to rate the property?

  • Do you provide any premium discounts if homeowner's insurance are carried with you?

  • Does the Home owner insurance policy have any provision that covers personal property that is lost, stolen or damaged within the premises?

  • How much will the insurance company pay and for how long if the house is completely destroyed?

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