real estate finance - full book (500 pgs)


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Unformatted text preview: ry under fair housing laws. QUESTIONS FOR THE BORROWER TO ASK LENDER'S QUESTIONS A lender asks a prospective borrower many questions before making a commitment to make a loan. The answers are submitted as a part of the loan application, usually along with an application fee which may include charges for a property appraisal and a credit report. This application fee is usually not refundable, even if the lender declines to make the loan. The loan application is not designed for persons merely inquiring about real estate loans who have yet to reach a decision to buy or finance. It is for the person who presumably will follow through and borrow, providing a loan is approved by the lender. Many loan applications to many lenders is not an effective way to “shop” for a loan. BORROWER'S QUESTIONS The following is a check list of questions for the borrower to ask before making a formal loan application and paying an application fee to the lender. Borrower's Decision – The prospective borrower will not always get satisfying answers to all of the questions asked, but by comparing the answers of several lenders the prospective borrower has the information needed to make informed decisions about a loan application. 15-22 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 15: REFINANCING OR NOT AND CHOOSING A LENDER Borrower's Checklist – (Questions to ask before making a loan application and paying an application fee to a lender) • • • • • • • • • • • • • • • • • • • Fixed–rate APR? Adjustable–rate APR? Index used? Margin? Frequency of rate adjustments? Loan origination fee? Is the origination fee negotiable? Discount points? Are the discount points negotiable? Credit report fee? Appraisal fee? Other closing costs? Loan application fee? lI What does the application fee cover? Balloon payments? Can interest rates be locked in? At what cost? What are the lender's qual...
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