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Questions to Ask Your Lender

March 26, 2014

When it’s time to purchase a home or refinance a loan, it’s easy to get caught up in the questions loan officers ask you. But Reliance First Capital knows that it’s just as important to understand the questions to ask lenders so you can gain a better knowledge of the lending process.

Before making a commitment, Reliance First Capital considers you to ask your mortgage professional these questions:

1. When are you available? You’ll have questions, and he or she should be available to answer them.

2. Which loan is best for me? A reliable lender will evaluate your situation to find the best option for you. Ask for an explanation of the pros and cons of various loan types, such as fixed-rate loans, adjustable-rate loans, and interest-only loans.

3. What are all the costs? The costs will include closing costs and settlement costs including, but not limited to, fees paid to the lender and third-party vendor fees. Such costs may include the appraisal, title charges, points to reduce your interest rate (discount points), and prepaid items.

4. What are the interest rate and the annual percentage rate? The interest rate is the cost of borrowing money expressed as an annual percentage rate. The interest rate does not reflect costs/fees or any other charges you may have to pay for the loan. An Annual Percentage Rate (APR) is a broader measure of cost to you of borrowing money. The APR reflects not only the interest rate but also other costs/fees including points, broker fees, and certain other charges that you have to pay to get the loan, including certain of your closing costs.

5. What is the turnaround time? Ask if the underwriters, who review loans and issue conditions before approving or rejecting them, are in-house and if there are any obstacles that could delay closing. Ask what the average time period to process a loan is.

At Reliance First Capital our licensed Mortgage Analysts take the time to explain the cost and benefits of each loan options so together you can identify the program which best addresses your needs and goals. Learn more by contacting Reliance First Capital today at 866-735-9004 or visit us online at www.reliancefirstcapital.com.

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