Questions to ask your Prospective Mortgage Broker

1. Along with this rate, what are my out of pocket & closing cost expenses?
        Lenders can conceal the true cost of borrowing by quoting an aggressive rate but not disclosing up-front
        costs because many borrowers don't know to ask.

2. Does my payment quote include taxes, insurance and or condo fees, and Private Mortgage Insurance?
        Be sure your payment quote includes everything that will be required by the promissory note

3. Does this loan have a prepayment penalty?

4.   Will you provide me a Good Faith Estimate?
       Although this breakdown of rate & mortgage related expenses are required by law, it is not always
       complete or provided at all.  A GFE (Good Faith Estimate) allows you to make a fair comparison of products.

5.   Do you charge an origination fee, broker fee or yield spread fee?  If so, how much?
       These are most often commissions to the lender.

6.   Will I have to pay the appraisal up front?

7.   Will you be held responsible if you misinform me or misquote me over the phone?
       The economy is a fluid thing and while rates can change rapidly, the rate/cost package at which you lock
       in should be what shows on your closing documents.  Who will answer to any discrepancies?

8.   What will all of my fees add up to? Title-appraisal-escrow set up-lender fees-broker fees and origination fees?
       Again, ask that this be disclosed up-front and then in the form of a written Good Faith Estimate.

9.   Are there points added into my loan in order to buy my rate down?
       Another way to quote an aggressive rate is to "buy one" by adding the buy down cost to the amount the
       customer is borrowing.  Then the customer not only pays for the rate over time but also pays interest on
       that additional buy down cost.

10. If I lock in my rate and rates drop, can I lock in the lower rate?
       Many companies offer a one-time float down option.  Your rate can go no higher than that at which you
       locked but you may have an opportunity for a lower rate.

11. Can you meet my scheduled closing date?
       This is a major concern.  When movers are scheduled, move-out notices delivered to landlords and/or
       funds are needed from the house that is selling in order to buy the next one (often the same day), a
       closing date snafu can cause time, money and unneeded stress.

12. Can I talk to you, your processor or underwriter any time I have questions or issues?
       Even though many people may be helping to get your mortgage to closing (originator, underwriter,
       appraiser, etc.), it is very helpful to have one resource upon whom you can call for mortgage answers.

13. If I have a question after hours or on the weekend are you available?
       Unfortunately, problems and questions seem to arise on evenings and weekends.