Tips From LoansConfidential.com to Protect Yourself and Your Home When Applying for a Mortgage

Many homeowners who were forced into foreclosure didn`t fully understand their mortgage. Don`t make this mistake! Many loan officers fail to disclose all aspects of the loan and closing cost; spending the extra 20 minutes asking these questions can mean the difference of keeping your home or losing it to foreclosure. These questions will also help you avoid a bait and switch on the interest rate and closing cost. Don`t assume anything and don`t be afraid to ask every question.

  -- What is the standard loan industry name of this program?
  -- What is the loan amount? Does that include any or all closing cost?
  -- What is the interest rate? How many years is the rate fixed for?
  -- How will my rate be calculated if my rate adjusts? What is my margin?
     What index will be used? How often will it adjust? What is the initial
     adjustment rate cap? What is the annual rate cap? What is the lifetime
     rate cap?
  -- How many years is the amortization period? Is there a balloon payment?
     When is it due?
  -- Is the payment a minimum payment, an interest only or principal and
     interest payment? What loan amount was that calculated off of?
  -- How long is the interest only option available for? What happens after
     that period is over?
  -- Can this loan ever have negative amortization? If yes, what are the
     terms?
  -- Is there a prepayment penalty? If yes, what is the penalty?
  -- What documentation type is this loan? What documents will I need to
     supply?
  -- What debt to income (DTI) ratio was used to qualify me? What was the
     dollar amount of debt that was used for the DTI ratio? What was the
     dollar amount of income that was used for my DTI ratio? What is the DTI
     ratio limit for this program?
  -- What credit score did you use to qualify me?  How did my credit score
     effect the pricing and how might pricing change if my credit score
     drops during processing of the loan?
  -- What loan to value was used to qualify me? What happens with pricing if
     the appraisal comes in low? Will there be Private Mortgage Insurance
     (PMI)?
  -- How many total points for this loan? What is the dollar amount of the
     cost of points?
  -- Are there any origination points? What is the dollar amount?
  -- Are there any discount points? What is the dollar amount?
  -- What are the lender fees? What closing cost do I have to pay?
  -- What are the prepaid items that will be apart of closing the loan? Will
     there be an escrow account? How many months will be needed to set the
     escrow account up?
  -- What are the third party fees? How much is appraisal, title charges,
     notary, recording and escrow fees?
  -- Are there any government fees from the state: mortgage tax, doc stamps
     or intangible tax?
  -- How much will be out of pocket? How much will be added on to the loan
     balance?
  -- How many days is the rate lock for this loan? What will be the charge
     for a rate lock extension if I need one?
  -- Do you guarantee your rate and closing cost in writing instead of just
     a good faith estimate?
  -- What is the process to lock in a loan? Are you locking in the rate,
     points, and closing cost? Can I get a written lock in confirmation?
     What happens if I cancel the loan?

To find a loan officer that will guarantee their lender fees or for more in depth analysis of these questions to learn why each one is so important visit http://loansconfidential.com/, a blog that empowers the borrower.

Robert Kim of LoansConfidential.com
1-800-961-2644

Source: LoansConfidential.com

CONTACT: Robert Kim of LoansConfidential.com, 1-800-961-2644
Web site: http://www.loansconfidential.com/