Questions to Ask Steamboat Springs Lenders

Not all lenders are created equal. That is why it is important to shop around and ask the same questions so you know who is offering the best loan to meet your particular needs.

1. Based on our situation, what looks to be the best program for us? Why?

2. What is the projected time for processing and closing a loan?

3. If PMI (Private Mortgage Insurance) is required, when and how does it go away?

4. What about your...Rates - Terms - Fees...are they all negotiable?

5. What standard underwriting guidelines do you follow? Are there any special underwriting guidelines?

6. What is your most popular loan program? Why?

7. Who services your loans?

8. Six months to a year from now, what will make this loan look good/bad to most borrowers?

9. What are your standard and special fees?

10.What, if any, escrow requirements exist?

11. What if rates go down during the "lock-in" period?

12.Who is our contact person after application for progress reports?

13.What do you need from us to get our loan approved?

14.Do you have any concerns about our ability to get a quick loan approval?

Questions to Ask When Getting an ARM (Adjustable Rate Mortgage)

  1. Initial Interest Rate

  2. Actual Note Rate

  3. Total Number of Points (Includes Loan Origination Fee

  4. Annual Percentage Rate

  5. Length of Loan

  6. Index Used

  7. Today's Value of Said Index

  8. Margin Used

  9. Is There a Payment Cap? Explain.

  10. Does the Loan Have Any Potential Deferred Interest? If Yes, Explain.

  11. Does the Loan Have the Standard Positive Amortization? If No, Explain.

  12. How Often is the Rate Subject to Change?

  13. Is There a Per Adjustment Interest Rate Cap? If Yes, What Is It?

  14. Is There a Lifetime Interest Rate Cap? If Yes, What Is It?

  15. Are the Caps Based on the Note Rate, or the Initial Interest Rate? Explain.

  16. How Long is the Rate Quoted Guaranteed? Explain.

  17. Is the Loan Assumable? If Yes, Explain.

  18. Is There a Prepayment Penatly? If Yes, Explain.

  19. Is There a Conversion Feature? If Yes, Explain.

  20. Is PMI Coverage Required? If Yes, Explain Details Including Initial Premiumm and Renewal Changes.

  21. What Will Be My Initial Payment (P&I) Be?