It is important that you are as prepared as possible when applying for a mortgage loan. These are the five most important questions to ask your mortgage officer in order to ensure that you get the best mortgage possible and that your loan closes on time.

What is the Mortgage Program I’m Trying to Qualify for?

There are many types of home loans. Before you apply for a loan, it is important to understand whether you are applying for an FHA, VA or Conventional loan. There are different requirements for each program, including down payment, credit score and job history. You should also ask your loan advisor about the term of the mortgage. Do you want a fixed-rate mortgage? Are you looking for a 30-year or 15-year mortgage? The process can be made easier by understanding the terms of the mortgage and the loan program.

Is there an up-front cost?

Some mortgage lenders require an application deposit before taking your loan application. These deposits may not be refundable. These deposits could increase your closing cost. The appraisal is a standard practice among mortgage lenders. Although you should be prepared to pay the appraisal fee, there are lenders that do not require a deposit.

What is the Rate and Fees for a Mortgage Loan?

It is crucial to understand the mortgage rate and closing costs associated with the mortgage loan. It is important that you only compare fees charged by the mortgage lender when comparing mortgage offers. These fees are known as lender fees. They will be included in section A of the Good Faith Estimate. On the HUD-1 form they will be listed as the 800 section. Common lender fees include underwriting, processing and document preparation, as well as application fee, loan origination charge, discount points, and loan origination fee.

Compare offers by comparing the total lender fees and the rate of your mortgage. If a lender charges $2000 for lender fees at a rate of 4.255%, and another lender charges $1500, the first lender is likely to be cheaper.

What are the Mortgage Turn Times?

Sometimes, the best deal is not always the one with the lowest rate or lowest closing cost. Lenders that charge lower rates may not be able to close your loan on the due date. A company with a lower price may not offer the same service as a company with a higher closing cost. Do you think you will get better service at Macy’s or Wal-Mart?

Ask your lender for closing guarantees if you want the best service possible and a timely closing. Many companies offer a guarantee of closing, meaning that if the closing date is missed, they will reduce their fees. If you’re buying a home, this is important.

What Documentation Is Required?

Ask your mortgage consultant for the necessary documentation to be submitted in order to process your request for a mortgage loan. These documents can be very helpful in expediting your loan application. The lender may require basic income and asset documentation.