I always recommend talking to multiple banks / mortgage companies and shopping this around to get the best rate and service.
The following questions should help you get the conversation started with your lender and save you a great deal of time in the long run by understanding the finance process and the services that they will provide up-front in the deal. This is best done BEFORE you ever have a property under contract.
Questions to Ask Your Lender:
1) Do you service loans in the state of Colorado?
2) What are the most popular mortgage loans you make? Why?
3) Which type of mortgage plan do you think would best suit our needs? Why?
4) How much money is required to put down on my mortgage? Is this negotiable?
5) Can you explain what "lock-in" means in regards to interest rates?
6) How long is your loan lock-in period (the time that the quoted interest rate will be honored)?
Will I be able to obtain a lower rate if the rates go down after I've already locked into a rate?
What happens if the loan has not closed and the lock expires?
7) Do you use local appraisers that are familiar with Summit County / Breckenridge (or other city) valuations?
8) How long will it take start to finish (from loan application to final loan approval) to complete financing?
9) What information/documentation is required from me/us?
10) Are your rates, terms, fees and closing costs negotiable?
11) Will I have to buy private mortgage insurance and if so, how much will this cost?
How long is this required?
(Note: PMI – Private Mortgage Insurance is usually required if you make less than a 20%
down payment, but most lenders will let you discontinue the policy when you've acquired a
certain amount of equity by paying down the loan.
12) Can you explain escrow requirements and how this works?
13) What are your bank's specific escrow requirements?
How much money will be required at closing to fulfill escrow requirements?
14) How long will it take to close the loan, I.e., how much time should I have my realtor put into the contract in order to fully approve and close the loan?
15) Are there any charges or penalties for pre-paying the loan?
16) Who will service the loan (I.e., do you keep in house or do you sell your loans) - your bank or another company?