The 9 Most Important Questions To Ask Your Mortgage Loan Originator..

The 9 Most Important Questions To Ask Your Mortgage Loan Originator

One of the most frequent questions I get asked is: What questions do I ask when looking for the best loan?

In this post financial melt-down environment, many people are hesitant to originate a home loan or refinance.  You may be confused about what to believe when sitting in front of your loan originator and reviewing the many loan options.  So to help you make sense of it, I have prepared, a list with the MOST important questions you SHOULD be asking whomever you have handling your home mortgage loan.  Remember, you WILL be responsible for your loan and it is IMPERATIVE that you fully understand what you are getting.   Feel free to print this out and take this with you to your loan originator's/refinance officer's office:

1) What will the monthly payment be for every month of the loan and could it increase?

2) When would it increase, what would it increase to, and how many times would it increase? 

3) Does my monthly payment include an escrow amount to pay for my property taxes and homeowners insurance or must I pay these on my own? 

4) Can you give me a monthly budget for escrows and insurance if I am responsible for paying these separately?

5) What is the term of the loan, how many payments will I have to make and will the loan be paid at the end of the term or will I have a "balloon" payment?

6) Will I have any "prepayment" penalties to refinance and pay off the loan and if so how much and when will they apply?

7) If the loan has an "introductory rate", can I refinance without any penalties before the rate resets and before my payment increases?

8) Are you a State of Colorado, licensed, loan originator?

9) Where can I go and verify that you are licensed and bonded in the State of Colorado?


I hope this list was helpful.  Feel free to call on me with any additional questions you may have regarding shopping for a home loan or your refinance options...

Pending Home Sales on an Upswing

Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

The PHSI in the Northeast declined 3.3 percent to 75.1 in March but remains 27.2 percent higher than March 2009. In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago. Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009. In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

First quarter metropolitan area home prices and state home sales will be released May 11. Existing-home sales for April will be reported May 24 and the next Pending Home Sales Index will be on June 2; release times are 10 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.