Page 9 - Van Wig & Associates Buyers Book

KNOW YOUR DOWN PAYMENT AND

PRIVATE MORTGAGE INSURANCE

Borrowers who are unable to do so are required to purchase Private Mortgage Insurance
(PMI). This insurance protects the lender in case of default by the borrower. If PMI is required, ask your
lender what the total cost
Be sure to get a clear indication of the down payment percentage required by your lender. of the insurance will be, how
You will also want to know what kind of documentation your lender requires to verify that much it will increase your
you have funds for the down payment. monthly payment, and how

long you will be required to
carry the insurance.

LENDER INTERVIEWER CHEAT SHEET

11. What documents will need to beprovided?
1. What kind of loans do youoffer?
2. What kind of loan would you recommend forme? 12. What documents will need to beprovided?
What are the advantages and disadvantages of this loanstructure? 13. Will the lender guarantee the GFE (Good Faith Estimate) of
3. What is the current interest rate? Is the rate quoted the lowestfor settlement charges and loan terms?
that day or week? 14. Does the lender offer a loan rate lock? Is there a fee forthe
4. What is the Annual Percentage Rate (APR) of an offeredloan? rate lock?
5. Is the loan rate adjustable or fixed? 15. Is there a prepaymentpenalty?
6. What are the discount points and originationfees? 16. Are you equipped to approve loans in-house?
7. What are all the costs of the offeredmortgages? 17. How much time do you need to fund the loan?
8. If the rate is adjustable -how will rate and loan paymentvary? 18. Will mortgage insurance berequired?
9. What are the qualifying guidelines for thisloan? 19. Can the term of the loan beextended?
10. What is the lender’s required down payment for thisloan? 20. Is there a cap on payment adjustments?

T H I N K D I F F E R E N T L Y