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Many homebuyers look for the financial institues directly for getting the loan.
It stands to reason since people gravitate toward financial institutions they
know and do business with already. Some figure out that they might be able to
get a better deal if they were to compare rates among lenders and talk with
mortgage brokers
Here are some good question to be asked to the leander
Q: Which Type of Loan is Best?
Ans: a good lender will ask you to give the full details before telling you
thwe full options for the loan. Like a doctor cannot suggest you to undertake a
surgery unless he examined you fully.
Also Don't be afraid to ask a lender to explain the pros and cons about
Q:What is the Interest Rate & Annual Percentage Rate.?
Ans: The annual percentage rate (APR) is derived by a complex calculation that
includes the interest rate and all the other related lender fees divided by the
loan's term. However, bear in mind that:
* Many lenders do not compute APR correctly.
* There is no way to accurately compute an APR rate for an adjustable loan.
* It does not account for early payoffs.
If your interest rate is adjustable, ask about its:
* Adjustment frequency
* Maximum annual adjustment
* Highest rate (Cap)
* Index
* Margin
Q: What Are All the Costs?
Ans: All the costs of a loan include not only fees that go into the lender's
pocket but also related third-party vendor fees such as:
* Appraisal
* Credit report
* Lender's title policy
* Pest inspection reports
* Escrow (where applicable)
* Recording fees
* Taxes
An estimate of these fees constitutes the Good Faith Estimate or GFE, which the
lender is required by federal law to give to you.
Q: Is There a Prepayment Penalty?
Ans: In some states, prepayment penalties are no longer allowed, so ask.
Typically, prepayment penalties let the lender collect an additional six months
of "unearned interest" if you pay the loan off early through a refinance of sale
of the property. Be sure to ask:
* How much is the prepayment penalty?
* What are the terms of the prepay? Some are in effect only during the first 2
to 5 years of the loan.
* Would the prepayment penalty apply if I refinanced through you at a later
date?
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