If you have decided to opt for the services of a mortgage broker in Chicago, you need to be aware of few important key aspects. First and foremost, you need to treat the mortgage broker in Chicago as your guide and not a sales person. If you have lots of knowledge about mortgage loans, you can always gain more knowledge by getting into a discussion with a mortgage broker in Chicago. One of the most important questions that you can ask a mortgage broker in Chicago is if there is a prepayment penalty.

Most brokers would tell you that a pre-payment penalty is an amount that you need to give the lender if you are prepaying the Chicago home loans. The prepayment penalty can range anywhere between $3000 and $20000. This amount depends on the amount of loan that you have taken from the lender. When you are asking the mortgage broker in Chicago about the prepayment penalty terms and conditions, don’t forget to ask about the penalty period. Some people may also wonder why these prepayment penalties are laid down.

People, who want to know more about the prepayment penalties, can ask the mortgage broker in Chicago or they can check out the Internet for the same. The mortgage broker in Chicago is the best person to help you find a good lender. There are hundreds and thousands of lenders in Chicago. When selecting the lender, you or your broker will have to ask the relevant questions to get the best out of the lender. You need to get a lender that will give you both the best service and the best interest rates.

It might also help you avoid a mortgage scam. As you are the client, you are in the driver’s seat and you are the one who calls the shots. The first question that you can ask the mortgage lenders is “Why should I choose you as my mortgage lender? All mortgage companies or lenders will say the same things such as we have the best service and we have the best rates than the others. There are some lenders that are smart enough and play with words to make you enter a trap.

Using traps and negative methods to get the customers is something that is very common among the lenders these days. You need to select a lender who gives you complete satisfaction in terms of service and interest rate benefits. You can ask yourself one question “What can this lender give me that other lenders cannot.” You will see that most lenders will give you very similar deals and make you feel that they are giving you the best.

You should look for a lender who specializes in services that go above and beyond the call of duty. Look out for features such as the VIP home buyer program, and free agent locater service. There are some good lenders who give off free reports and helpful information. You need to ask the lender how many points they will be charging. In their simplest form, points are upfront mortgage interest fees that are paid on a loan to reduce the long term interest rates. Points are fees that the borrower pays to the lender at the time of loan closing.

So, if you pay one point, or one percent on a one hundred thousand loan, then you will pay the lender one thousand dollar loan closing, but you will reduce your long tern interest rates, which will save you money throughout the life of the loan. Some loan rates have points already built in, so you need to make sure hat the lender is very clear on how many points are being charged. Another question that you need to ask the lenders is “How long will my loan be in process with you?”

When you apply for a mortgage loan and get approved, your loan process is just getting started. The time between your application date and your closing date is called as the in-process period. In addition to the aforementioned questions, you can also ask the following questions:

– What loan rate do I currently qualify for?
– When will you lock in my loan rate?
– What is your track record?

Author Bio: Article by John Hoots of ChicagoMortgageSpecialist.com, a website with the best mortgage broker in Chicago and mortgage in Chicago information on the web.

Category: Finances
Keywords: Chicago home loans, mortgage broker in Chicago