Would you go to a doctor who did not hold a valid license? What about a contractor or a even the accountant that does your taxes? Does it matter to you what type of training they received? Is it important that the teachers who are influencing our nations children have teaching credentials and licenses? What about your hairstylist or nail technician? Did you know that according to an article in Central Arizona titled, "Rules Sought on Mortgage Officers" it was cited that, "Many of the people in AZ who help home buyers finance what is often the biggest purchase of their lives are not licensed". This is a reality that many realtors in Arizona are more than aware of. Realtors in Arizona are not only licensed, they must maintain their licensing every two years with mandatory continuation classes. The lack of licensing among the lender community is often a topic of discussion.
The January edition of Arizona REALTOR also had an article about lenders and our responsibility to educate our buyers and to make them aware of unsavory practices. There is good news however, House Bill 2320 will require some form of licensing and bring accountability to the lending industry. As my part to educate potential buyers that need to choose a lender I have put together the following:
To better determine is a lender right for you, here are 20 questions to ask a lender/mortgage broker before asking them to help you.
1. Do you represent a mortgage broker, mortgage banker or lender, consumer finance company or financial institution?
2.If they work with a mortgage broker, is that broker licensed by the state?
3.What is the interest rate you are offering me? If this interest rate fixed or variable? Is this the best rate possible for my credit score?
4. Are you locking my rate and if so for how long?
5. What would be my APR?
6. How much would you be paid for this loan?
7. What other costs and fees will be associated with this loan?
8. What will be the principle balance of my loan?
9. What will my monthly payments be? Will there be an impound?
10. When would my payments be due? what will the grace period be?
11. What is the length of the loan, will there be a balloon payment due?
12. Who will be my lender?
13. Will my loan be sold?
14. If I pay the loan off early will there be a prepayment penalty?
15. What is the appraised value of the property?
16. If I pay for the appraisal how do I get a copy of it?
17. If I pay for a credit report how do I get a copy of it?
18. Am I required to have private mortgage insurance? When and how do I cease paying it?
19. Are you or your company affiliated with the title co?
20. Who do I contact 24 hours prior to closing to obtain a HUD settlement statement?
All of these questions are good ones and will not only help you to find the right lender for you it will help you understand the total lending process.
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