10 QUESTIONS YOU SHOULD ASK MORTGAGE BROKERS BEFORE HIRING THEM

Hi Neighbor,

Here is a information packed report that will open your eyes to the truth about some of the major questions that I have seen over the many years I have been helping regular hardworking folks get a mortgage.  You may even want to print out this information so that you can have it at a moments notice.

After you finish reading this report give me a call at my office at 203-483-0061 and ask for Chris Rivers to set up an appointment to come in and get specific about getting you into the mortgage program and rate you want. Or you can just send me an email to rivers@ctmortgageplanners.com with some basic information and I will get back to you within 24 business hours.

Let's begin.

1. How long will it take to process my mortgage loan application?
 

Usually it takes about 15 to 30 days, although it can take as few as 15 days and as long as 60 days for some transactions. The actual time depends on how quickly you get your documentation to the lender and when the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.

2. What documents do I have to provide?
 

You will need to provide proof of income and assets in order to get a mortgage loan. Different lenders may require more or less of these documents.

Copy of Last two years of W2’s and tax returns for all borrowers                              

Copy of Current Pay stub                                                                                      

Copy of 401k Statements & Investment Statements                                        

Copy of Previous 2 months bank statements from ALL accounts     

3. What are the qualifying guidelines for the particular loan?
 

Every loan program has different criteria in order to qualify.  The qualifying guidelines can relate to your income, employment, assets and liabilities, and credit history. Remember some first-time homebuyer programs and government-sponsored loans have easier qualifying guidelines.

****Tip
It's a good idea to know what type of mortgage you want, such as fixed or adjustable rate, when you start loan shopping.

4. What is the minimum down payment?
 

If you are thinking of purchasing a home then the down payment varies by how much you want to finance.  The most common financing is 100% financing which means that you the borrower pay no money down, but your monthly payment will be higher than if you put some money down.  Additionally if you put money down you can get different interest rates, loan terms, and avoid private mortgage insurance. By the way, very few loans require the standard 20 percent down payment; most offer special low down payment programs.

5. What is the annual percentage rate of the mortgage interest?
 

To effectively compare different lenders' programs, ask for the annual percentage rate, or APR, of the mortgage interest, which is generally higher than the initial quoted rate because it includes all lenders' fees.   The APR is not the interest rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It takes into account the closing costs, all fees associated with your loan and all of the interest that you would pay over 30 years and then computes an annual rate of interest.

6. What are the points or origination fees on the loan, if any?
 

Points are prepaid mortgage interest, and you may have to pay points at closing in order to get a lower interest rate on your mortgage loan. For example if you are borrowing $100,000 then 1 point would be $1,000.  Therefore when a bank offers you a 6.5% rate with 2 points they are really asking you to pay $2,000 to get the 6.5% rate, but they might also offer you a 7.1% rate with no points. Points are most often included into the loan amount unless you are purchasing a home and the additional costs can not be included into the loan amount because you are maxed out in regards to the amount you can borrow.

7. Can I lock in the interest rate?
 

The interest rate of the mortgage you're applying for may go up or down before you close on the home. That's why it may be wise to lock in the rate for a specified period of time, rather than let the rate float until the closing. Be sure to ask the lender if there is any fee for locking in the rate and whether you also can lock in points. As a rule of thumb you should always request to lock in your rate on your loan.

8. What is the 'good faith estimate' of closing costs?
 

Mortgages come with a list of fees. Ask for a list of estimated closing costs before applying for the loan. Also, remember that some fees must be paid upfront such as the credit report, property appraisal and loan application fee.

9. Is there a prepayment penalty on the loan?
 

The prepayment question is for all loan shoppers. Find out the duration of any penalty period and how the fee would be calculated. Some penalties are 1 percent of the loan amount: others are more complicated. Knowing how much the prepayment penalty would be is important if you think you will sell the home before the mortgage is paid off, which most homeowners do.

10. What can delay the approval of my loan?
 

If you provide the lender with complete, accurate information, everything should go smoothly. However, there could be a delay if you don’t provide documents in a timely manner, if the appraisal can’t be done within a timely manner and if the lender discovers credit problems.  All of the factors can contribute to the loan not being approved as quickly as anticipated in the beginning.

I hope you have enjoyed this special report. We currently have over 40 creative loan programs to fit your needs. Please contact us at 203-483-0061to set up your FREE No-Obligation consultation where we will meet to tailor a program to fit your needs and comfort levels for monthly payment and investment.

Sincerely,
Chris Rivers
Chrysalis Funding
150 W. Main Street
Branford, CT 06405

Phone: 203-483-0061

P.S. If you would like to get started now please click the following link or image below to fill out a Free No-Obligation Secure Online Application and we will contact you to schedule a free consultation to help you get the home of your dreams with the best terms available...regardless of your credit!