There are definite questions you should be asking when dealing with a mortgage banker. Remember they are not the same as a mortgage broker. Here are some questions you should ask:
1) Will this loan be sold on the secondary market or will it be placed in portfolio? Remember in some earlier blogs, I discussed how the mortgage loan was sold to a different servicing agent.
2) What is the length of the loan? It is important to make sure you have the terms you asked for.
3) When is the house payment due and when is the late fee incurred? Is there a grace period? You do not want to get into the habit paying your house payment late. Know when it is due and when it is going to cost you more.
4) How many months worth of property taxes and insurance are required for the reserve account? You need to know this upfront.
5) If private mortgage insurance is required, at what point will it be unnecessary so it can be dropped? Find this out and what are the terms for dropping it.
I have to tell you all of these are very good questions and highly recommend your asking them. Do not let these questions go unanswered. It could be detrimental later to your keeping your home.
