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16 Questions to Ask When Choosing a Lender


Loan terms, rates and products can vary significantly from one lending company to the next. Plus, how do you handle closings in the age of COVID-19?


General questions:

1. What are the most popular mortgages you offer? Why are they so popular? 2. Are your rates, terms, fees and closing costs negotiable? 3. Do you offer discounts for inspections, homeownership classes or automatic payment set-up? 4. Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? 5. What escrow requirements do you have? 6. What kind of bill-pay options do you offer? 7. Do you do remote closings? 8. Explain the process of closing with social distancing.


Loan-specific questions:

9.What would be included in my mortgage payment (homeowner's insurance, property taxes, etc.)? 10. Which type of mortgage plan would you recommend for my situation? 11. Who will service this loan____ your bank or another company? 12. How long will the rate on this loan be locked-in? Will I be able to obtain a lower rate if the market rate drops during the lock-in period? 13. How long will the loan approval process take? 14. How long will it take to close the loan? 15. Are there any charges or penalties for prepaying this loan? 16. How much will I be paying in total over the life of this loan?

Source: National Association of Realtors

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