What to Ask Your Mortgage Lender

When you apply for home mortgage loans online, you should ask your lender these questions before deciding on a loan. Here are the questions you can't afford not to ask.

• What's my APR? The APR, or annual percentage rate, is probably the most important feature of your home mortgage. The APR includes the interest rate of the loan plus all charges and fees, so it is the best representation of the true annual cost of borrowing. The APR is also the best way to compare home mortgage loans online. In general, the lower the APR, the better the loan.
• Will my interest rate ever change? This is an important question to distinguish between fixed-rate and adjustable-rate home mortgage loans online. With fixed-rate loans, your interest rate will remain stable for the life of the loan. With adjustable-rate loans, your interest rate will reset, or change, at certain intervals (usually every six months to one year).
• Do you charge points? Lenders might allow you to "buy down" the interest rates of home mortgage loans online with discount points. Find out if you have this option. You might also be charged origination points, which are a type of administrative fee.
• What is your good faith estimate of my closing costs? By law, lenders must give you a good faith estimate of all closing costs and fees within three days of receiving your application. Use closing costs as a basis of comparison among different home mortgage loans online.
• Can I lock in my interest rate? Processing your application and closing on Home Mortgage Loans Online takes time, and you don't want the interest rate on your loan going up in the meantime. Ask your prospective lenders if they will lock in your initial rate for a certain time, usually 30 to 60 days, while your application is processed.
• What documents will I need? Different lenders require different documents to support your application, so know what you will need to supply beforehand.