5 Things Your Loan Officer Should Tell You-Part 3
Friday, September 7th, 2007Continued—-
Third, your loan officer should tell you what type of loan programs you qualify for and explain their differences so that you can make a proactive decision about the type of loan you want.
Do you want a fixed rate loan?
Do you want a “no down payment” loan?
Will you have to pay PMI (private mortgage insurance)?
Can you use gift money? Is there a prepayment penalty?
Can you make interest-only payments?
These are just some of the many variables loan programs can offer. In providing this information, your loan officer should explain the meaning of each aspect of the loan as well as outlining the pros and cons of each program. Make sure you understand how the program works, what your payments will be now and in the future. If aspects of the loan program can change such as the interest rate, make sure you understand how and when the rate can change. Always ask for details and answers when you don’t understand.
Continued, Part 4, The Underwriting Process–