Questions to Ask a Mortgage Banker
When talking to a mortgage banker prior to making an application, it might be helpful to have he answers to the following questions in order to make an informed decision.
Will this loan be sold on the secondary market or will it be placed in your portfolio?
If private mortgage insurance is required, at what point will it be unnecessary so that it can be dropped?
When does the servicing department pay the property taxes to insure the income tax deduction for that year?
How many months worth of property taxes and insurance are required for the reserve account?
If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charges will be involved. Will another appraisal be required?
If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments?
When is the house payment due and when is the late fee incurred? What is the late fee?
What is the up-front charge for private mortgage insurance and the renewal?
