Questions to Ask Your Lender Before Securing Your Mortgage

Looking to buy a Chicago home? Get a Full Home Search

Selling your Chicago home? Get a Free Home Price Evaluation

Before you go ahead and sign on the dotted line for a mortgage, there are a few important questions that you should be asking your lender. 

These include questions like, “What is the interest rate on the loan?” and “Is it a fixed mortgage or an adjustable mortgage?” Everything should be spelled out clearly. Good-faith estimates and truth-in-lending forms are gone, and loan estimates and closing disclosure forms are here. They spell all of the information out about the loan. 

Prepayment penalties are not for all mortgages. It depends on the state that you’re in. According to David, he never sees prepayment penalties for the mortgages that he does. He only sees them with commercial lenders.

When you start with your mortgage application, you’ll lock your interest rate in for 30, 45, or 60 days. We can do long-term locks as well up to 180 days. In an environment like this with rapidly rising rates, it makes sense to lock it in now if you know that you’re going to be purchasing a home.

“

  It makes sense to lock in a rate now before they go up again.

”

If you have any questions about mortgage, interest rates, or buying or selling a home, don’t hesitate to reach out to us and give us a call or send us an email. We look forward to hearing from you soon.