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What type of loan is best for me?
If you've done some groundwork you should have a pretty good idea of what type of loan you need. But your
lender may offer options you hadn't considered or even something you haven't yet heard about.
What will my closing costs be?
At closing, you'll be required to pay a number of fees such as transfer of title, origination and appraisal,
attorney services, credit report, title insurance and inspections. Your lender is required to provide an
estimate of these costs within a few days after your application is received, but you can always ask for an
estimate sooner.
Will I be charged points?
Sometimes you'll have to pay points (one point = 1% of the loan amount) in order to get the interest rate
the lender has quoted you. Before proceeding with your loan application find out if there are any points
attached to your loan.
What items must be prepaid?
Some expenses, such as first year's property taxes and insurance, must be paid at closing. Your lender will
let you know what's required.
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How long will I be guaranteed the quoted interest rate?
This is called "locking in" a rate and most lenders provide this service. When you apply for your
loan, the lender will lock in the agreed interest rate for an agreed period of time. But there may be a fee
for this, so ask.
How long will it take to get approval?
It varies, so make sure you get an estimate of how long approval will take, especially if you have a
deadline for closing on a new home.
Does the loan have a pre-payment penalty?
If you even think there's a possibility you may pay off your loan early (this includes refinancing) find
out if there's a penalty for doing so.
Is there a call option attached?
A call option allows the lender to require you to pay off your loan balance before it's due. You don't want
this, so make sure it's not in the contract.
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