South Jordan

When you’re shopping for a home loan, you need to compare interest rates and services and ask a lot of questions. This worksheet can help guide you in your search for a loan.

Ask This Question
I am buying a house and I am looking for a fixed-interest-rate loan/adjustable-rate loan. I plan to make a down payment of ________%. The house is priced at $__________________________, and I need a loan of $____________________. Based on today’s rates, what will my interest rate and discount points be if I apply for a loan today and lock in the rate for 60 days?

Notes
Rates and points can change daily. That’s why it is important to get rate quotes from different mortgage companies on the same day. It is also important to compare the companies on an equal basis, which is the reason for requesting a rate lock of 60 days. A written rate lock is a promise that you can have that interest rate for specified period of time. If you need a longer lock-in period, ask what is available. The longer the lock-in, the higher the discount points will be. One discount point equals 1% of the loan amount.

Ask This Question
What is your origination fee?

Notes
The origination fee is paid to a lender for processing the loan application. Typically, it is 1% – 2% of the loan amount.

Ask This Question
If I decide to lock in my loan at application today, will you provide me with a written lock-in agreement that will confirm the interest rate, discount points, the origination fee and the expiration date of the lock-in?

Notes
Don’t rely on verbal locks. Lenders routinely back out of verbal lock-in rates and fees.

Ask This Question
When I apply for a loan, will you provide me with a good faith estimate outlining all of my loan settlement costs before I pay for an appraisal and credit report?

Notes
Although federal law requires the lender to provide a good faith estimate within three business days after the receipt of an application, you should try to get one before you pay for your appraisal and credit report.

Ask This Question
I understand that you will need a credit report and a property appraisal after I have applied for the loan. How long do you estimate it will take your company to make a final loan decision from the day of application?

Notes
Many states laws require a lender to provide borrowers with a loan disclosure in writing that includes: the estimated number of days required to issue a commitment, whether fees are refundable, and the name and address of the person whom the borrower may contact with written
questions or complaints.

One of your largest lifetime investments is the purchase of a home. And knowing the loan amount you qualify for helps determine how much house you can afford.

Any financial institution, whether bank or mortgage lender, will require extensive financial information from you including your current income and debts. This information helps the financial institution determine your qualifying interest rates, borrowing capacity and the grants you qualify for.

Armed with this information you can begin the Home Search.