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Not all lenders are the same. If you decide to seek the help of a Mortgage Professional when either buying or refinancing your home, you need some good information before you make a move.

In order to better help you in your search for the right Mortgage Professional we have prepared the following report: "10 Questions You Must Ask When Interviewing a Mortgage Broker." This report address 10 essential questions that you as the borrower can make use of, in order to ensure that you get the best possible representation for your specific needs.

"...you want to be as well prepared as possible when making such a critical decision..."

• What Are the Interest Rate and Annual Percentage Rate of the Loan?

   
Find out what the interest rate will be on the loan as well as the annual percentage rate (APR).  The APR is a combination of the interest rate, points and other charges divided by the loan’s term to give an annualized rate. It is the best way to properly compare loan costs.

• How Many Points Will Be Charged?

A point is one percent of the loan amount.  Points charged are additional to the interest rate that is charged on the loan.  A loan with a low interest rate and high points may cost you thousands more than one with a higher interest rate but low points.  This is important because the number of points charged varies from lender to lender.

• What will be the Total Closing Cost Fees Charged?

Lenders charge fees for the services incurred to process and close your mortgage.  By law, closing costs must be disclosed within 3 days of the loan application, however, there are different approaches to calculating them.  Some brokers will initially disclose closing cost figures which are very appealing, only to provide much higher costs as your closing date approaches.

• Is There a “Lock-In” Policy? Is There an Additional Charge to Lock-In an Interest Rate and Discount Points?

Many lenders offer a lock-in policy that guarantees you a certain interest rate and points for a specified number of days.  The alternative to this is accepting the prevailing rate and points on your closing day.  Since rates can change daily, the one time lock-in fee may be able to save you thousands.

• How Long Does it Take to Process My Mortgage?

Processing is the means by which your loan is prepared for underwriting, or approval.  The time it takes to process a loan varies by the type of loan and even among lenders.  Loans can usually be funded within 7 to 10 working days.  If time is of the essence, a lender with quick processing, underwriting and funding capabilities can prove to be a very valuable asset.

• Is There a Pre-Payment Penalty?

Normally you can prepay a loan without penalty if you notify the lender in writing that you are either selling or refinancing.  There are however, exceptions.  Make sure to ask about your mortgage, and have it configured for your unique situation.

• What is the Lender’s Track Record?

It’s important to rate your lenders reputation for speedy processing, knowledgeable loan service and meeting contract deadlines.  You want to hire a mortgage broker who will treat you the way you want to be treated and has respect for your purchase.  Your lender will be dealing with your hard earned money and home purchase, so you want to be confident that you have made the correct decisions.

• What Do You Offer to the First Time Buyer? (If applicable)

Purchasing a home is among the most significant financial commitments most people will ever make.  First time buyers often have special needs and concerns.  If this is you, make sure your mortgage broker provides services especially tailored for the first time buyer.

• Do You Offer a GUARANTEE?

 
Does the Mortgage Broker back up his verbal commitment with a written GUARANTEE. Does He/She feel confident enough in His/Her ability to delver the goods ON TIME with the Ultimate in Service?

• Past Client Testimonials

Will the Mortgage Broker provide you with at least 3 past clients and their contact information, allowing you to follow-up with them and verify His/Her past services.

Get the Right Information - Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you be informed about the factors involved.

Everyday people turn to a mortgage lender to help them get a home loan, but because many of them don't know what questions, if any, to ask, they often make incorrect choices.  By taking these few minutes to acquaint yourself with the "10 Questions You Must Ask When Interviewing a Mortgage Lender" you can reduce or eliminate the chances of making a critical error and save thousands on your mortgage.