The 8 “Must Ask” Questions That Could Save You Thousands in Closing Costs & Help You Avoid a Nightmare Closing!
A good loan officer will thoroughly explain all costs as well as the interest rate you qualify for. At Michigan Mortgage Solutions we consider ourselves Math Nerds and our Loan Estimates are usually within a couple hundred dollars of the actual numbers at close. This allows our clients to breath easy and avoid the stereotypical pitfalls of the nightmare mortgage closing.
However, I realize that every borrower that reads this is not going to do business with us so I’ve created a list of questions to ask your lender to make sure that they are providing you with a legit quote.
- Do you charge an Application Fee, a Processing Fee, or any Admin Fees? (If yes, ask if those fees are negotiable. If non-negotiable I would suggest you move on )
- If I’m paying an origination fee will I get a lower rate? (If no, ask why you’re paying an origination fee)
- Are you going to use a true escrow formula for my escrow account and tax prorations or do you use averages? (If they use averages, tell them you want true calculations and if they can’t I would suggest you move on)
- Where do you get my summer and winter tax information from when completing my quote? (Make sure they’re using county records not the MLS listing)
- What are you using as my yearly homeowners insurance premium and where did you get that information? (If you’ve obtained a quote you should provide them with that yearly premium. If not, make note of what they used and compare that to the quote when you get it as it could change your closing costs and monthly payment)
- Do you include my first year of homeowners insurance as a Prepaid Fee or is it a fee outside the transaction? (If not included as a Prepaid Fee make sure to account for covering this cost out of pocket as well as noting that it isn’t included when comparing against other lenders)
- Does the interest rate quoted provide me with any type of lender credit to help cover some of my costs?
- How long is the lock period for the quoted rate? (You’ll want at least 30 days but 45 is preferred)
If you’d like to learn more about getting the best deal on your mortgage call us today at (248)674-6450 or check out the articles below;