Mortgage Tips – Before Borrowing

What You Will Need

Below is a list of questions you will probably be asked by the bank during the mortgage application process:

• Where do you and/or your spouse or partner work and how long have you worked there?
  
• What is your combined gross income?
  
• What are your date(s) of birth and social security numbers?
  
• Do you own or rent the place where you live and how long have you lived there? What is the monthly amount of rent or the mortgage you are now paying?
  
• If you are a homeowner, what do you think is the current market value of your home and what do you still owe on this loan?
  
• What other loans do you have, what are your outstanding balances and terms, and what amount of credit card debt do you have? What are these creditors?
  
• In addition to a home, what are your other assets including cars, investments, retirement accounts, and their value?
  
• What are your other monthly expenses/liabilities including insurance, child support payments, alimony, etc.?

Questions To Ask The Mortgage Lender

• What are your current interest rates?
  
• What type of mortgage do you think is best for me and why?
  
• How much time will I have before closing?
  
• Can I lock in this interest rate during the closing period?
  
• Do you have a float-down provision if the rate drops before closing?
  
• What closing costs, if any, do you require?
  
• Do I need to pay upfront escrows for insurance and taxes?
  
• What are you down payment requirements and do you have special programs with some flexibility?
  
• Can I repay early without penalty?
  
• How long will it take to get my application approved?
  
• Can I pre-qualify?
  
• What is the most efficient way for me to make my loan payments?
  
• What is your privacy policy?
  
• What is my credit score and how can I improve it?
  
• What rights do I have as a consumer to cancel this loan?