The Down Payment / Private Mortgage Insurance
The largest upfront cost in purchasing a home is the down
payment. Most traditional lenders expect borrowers to put at
least 20% of a loans total amount down. Borrowers who are
unable to do so are required to purchase Private Mortgage
Insurance (PMI). This insurance protects the lender in case
of default by the borrower.
1. Be sure to get a clear indication of the down payment
percentage required by your lender. You will also want to
know what kind of documentation your lender requires
to verify that you have funds for the down payment.
.
2. If you are not able to put down the traditional 20% on
Interview Questions for your Lender
your purchase and Private Mortgage Insurance is
1. What kind of loans do you offer?
required, ask your lender what the total cost of the
2. What kind of loan would you recommend for me? What
insurance will be, how much it will increase your monthly
are the advantages and disadvantages of this loan structure?
3. What is the current mortgage interest rate? Is the rate
payment, and how long you will be required to carry the
insurance.
quoted the lowest for that day or week?
4. What is the Annual Percentage Rate (APR) of an offered
loan?
5. Is the loan rate adjustable or fixed?
6. What are the Discount Points and Origination Fees?
7. What are all the Costs?
8. If the rate is adjustable, how will rate and loan payment
vary?
9. What are the Qualifying guidelines for this loan?
10. What is the lender's required down payment for this
loan?
11. What documents will need to be provided?
12. What are the closing costs?
13. Will the Lender Guarantee the GFE?
14. Does the lender offer a loan rate lock? Is there a fee for
the rate lock?
for a loan comparison worksheet that
you can print off and use to compare
lenders and loan options. I can send
you one today!