Mortgage lenders have to consider a lot of data processing for completing the mortgage process. They are often bombarded with various questions from the borrowers as the process is tedious and time-consuming. Mortgage lenders often resort to mortgage outsourcing to deal with the data and process more efficiently. As the rules and regulations for documentation and verification change from location to location, it is quite natural that borrowers have many doubts. Here are some of the common doubts the money lender can expect from the borrowers:
Which type of loan would suit you the best?
There are different types of mortgage loans available to the borrower such as fixed or adjustable rate loans, interest-only and negative amortization loans. The interest rates, monthly payments and other charges depend upon the type of loan you opt from the mortgage lender. Most of the times, the borrowers are unaware of the charges involved or differences in the types of loans they can avail. Moreover, not all of them can afford to avail these loans. It depends upon many factors. Make sure that you inform the customer of the type of loans available and how they can benefit or get into trouble with each. Ideally, you can suggest which load would suit them based on a detailed evaluation.
How much would it cost?
There are many charges apart from the interest rate that adds to the amount of loan availed by the borrower. Other charges such as report charges, documentation charges, annual percentage rate, mortgage insurance, origination or lender fees, recording fees and taxes apart from title processing, credit reports, pest inspection reports etc. Apart from these, the borrower also has to arrange for the down payment.
Can I opt for foreclosure? Is there any charge involved?
Sometimes, the borrowers may consider a foreclosure, which often attracts a prepayment penalty. Since some states have discontinued this penalty, the foreclosure service provider can specify whether or not the penalty is applicable for the borrower.
What’s the loan rate?
You can opt for loan rate lock or floating rate. The money lender should ideally help the borrower to understand what locked and floating rates mean and how it will affect the repayment. The lenders agents can help the borrowers understand this better using charts and estimates.
How long will it take to process?
The faster the better is definitely the way customers would prefer. Even for the mortgage lender, faster completion is more effective because they can employ these employees to other critical processes that require expert attention. Mortgage assistance relief services providers offer exclusive and efficient processing. That’s one of the reasons mortgage lenders prefer to outsource the entire process to competent outsourcing partners, to reduce the time to complete it faster, without any errors.
Any possibilities of processing delay?
Each transaction has to be dealt with in a unique way. The documentation, value, loan option chosen and conditions will be different for each transaction. Hence, even if your mortgage loan is prequalified, it does not guarantee approval.