Using the Services of a Mortgage Broker Checklist
Before you commit yourself-and your finances-to a mortgage broker, ask yourself the following important questions:
- Have I checked with the Division 1-800-223-8791 or (317) 232-6681 as to the mortgage broker's status as licensed, exempt or unknown?
- Have I pulled my credit reports and score so I am prepared for borrowing a realistic amount of mortgage money and know whether or not I qualify for a sub prime loan?
- Have I tried using lenders other than a mortgage broker to locate a loan, such as the credit union at work or a bank?
- Have I made copies of any documents that I have provided to the mortgage broker, so that if I decide to go elsewhere, I will not have a hostage-documents problem?
- Do I have the completed and signed mortgage broker service contract stating the amount I propose to borrow and the broker's fee if the loan closes?
- Did I receive a completed good-faith estimate of closing costs that also addresses the yield spread premium issue?
- Have I been provided with a copy of my application by the mortgage broker, plus other documents, as I sign them?
- Have I been told 2 to 3 weeks after my completed application who the proposed lender is, their business address with telephone number, how the loan will be funded, and when I am getting a written loan commitment letter from the lender?
- Do I know if the loan will contain a pre-payment penalty, balloon payment, escrow account for taxes if I want one, where the closing will take place, and how to contact the title company conducting the closing?
- Have I been provided with a draft copy of the HUD-1 settlement statement one business day prior to the closing so that I may compare the fees with the good-faith estimate of closing costs?
- At the closing, do the terms and fees match what I was promised? Am I prepared to get up and leave if I find discrepancies?
- Am I going to get complete copies of the mortgage, the promissory note, and all the other documents at the closing?
- Does this lender service their own mortgages, or will the servicing—the collection of the mortgage payment each month—be sold? If the servicing is sold right after closing, do I know the telephone number, business address and name of the mortgage servicing company—provided to me in writing?