Important questions to ask on a Purchase loan

Here's a couple key questions to ask your mortgage lender prior to getting into contract on a new home purchase. For the point of this example, let's pretend that the Buyer is pre-approved for a 100% no money down home loan on an $800,000 home:

Things to ask:

• What is the current market rate on both first and 2nd?
• Assuming an 800,000 purchase price, what will my total payments be given today's rate?
• Is there mortgage insurance?
• What are the points or fees?
• What other fees and/or closing costs are there?( with no money down, how much do you still need in cash to close)?
• How much can the Seller contribute back to me for closing costs?
• Is there a pre-payment penalty or early termination fee?
• How can I get a pre-approval letter to give to my Realtor to present with my offer?

A good mortgage broker won't have to answer these questions as they would have told you all of these answers without you having to ask. Folks, Let's buy some real estate. Call me to get pre-approved for loans anywhere in California: 415-485-1776, Pat Townsley Real Estate Network, www.PTRE.net