Warning! Home finance has blossomed into an incredibly diverse and complicated industry. This is good and bad. There are at least a hundred ways to borrow the money for your next home now. There are also dozens of ways for lenders to take advantage of you, from hidden charges to prepayment penalties and more.
Let your lender explain all the various home loans and home finance options available. However, when you finally decide on a product you like, ask as many of the following as are relevant to your loan. These are the questions that will protect you.
Home Finance – Questions For The Lender
– What is the interest rate?
– What is the APR (annual percentage rate; includes fees, points and mortgage insurance)?
– What is the initial rate (if it is an ARM – adjustable rate mortgage)?
– What is the highest the rate can go to next year (ARM)?
– What are the annual and lifetime caps on the interest rate and payment (ARM)?
– How often is the rate or payment adjusted, and when (ARM)?
– What index is the rate based on (ARM)?
– What margin is added to the index (ARM – it might be the index plus 3%, for example)?
– Is credit life insurance required (this pays off the loan if you die)?
– How much would the payment be without it?
– Can any of the fees or costs be waived?
– Is there a prepayment penalty?
– How much is the prepayment penalty?
– For how long is the penalty in force?
– Are extra principal payments allowed?
– Is an interest rate lock-in available? (guarantees interest rate for a time)
– Can I have the lock-in in writing?
– Is the rate locked in at time of application or time of approval?
– If rates drop, can I get a lower rate locked-in?
– What inspections and/or surveys are required?
– Is a title search and/or title insurance required, and what is the cost?
– Can I get an estimate of prepaid amounts that I’ll have to pay at closing?
– Are there “points,” and what will these cost (discount points to reduce interest rate)?
– What state taxes, local taxes, stamp taxes and transfer taxes will I have to pay?
– Will a flood determination be required (to see if the home needs flood insurance)?
– What other costs will there be?
– Is there anything else I should know?
Lenders may not like getting two dozen questions thrown at them, but you have a right to ask before you agree to a loan. Did you know that a 1% higher interest rate on a $150,000 loan can cost you an extra $30,000 over the years? Home finance can be as important as a good price when it comes to saving money on your home.
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Gerling is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Gerling.
As an attorney and former client of Doucet Gerling, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."