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(a continuation)
Questions For Lender
____What is the interest rate?
____What is the APR? (annual percentage rate; includes fees, points and mortgage insurance)
____What is the initial rate? (if it is an ARM - adjustable rate mortgage)
____What is the highest the rate can go to next year? (ARM)
____What are the annual and lifetime caps on the interest rate and payment? (ARM)
____How often is the rate or payment adjusted, and when? (ARM)
____What index is the rate based on? (ARM)
____What margin is added to the index? (ARM - it might be the index plus 3%, for example)
____Is credit life insurance required? (this pays off the loan if you die)
____How much would the payment be without it?
____Can any of the fees or costs be waived?
____Is there a prepayment penalty?
____How much is the prepayment penalty?
____For how long is the penalty in force?
____Are extra principal payments allowed?
____Is there an interest rate lock-in available? (guarantees the interest rate until a certain time)
____Can you have the lock-in in writing?
____Is the rate locked in at time of application or time of approval?
____If rates drop, can you get a lower rate locked-in?
____What inspections and/or surveys does the lender require?
____What kind of title search and/or title insurance does the lender require? The cost?
____Can you get an estimate of prepaid amounts that you'll have to pay at closing?
____Are there "points?" How much will this cost? (discount points to reduce interest rate)
____What state taxes, local taxes, stamp taxes and transfer taxes will you have to pay?
____Will a flood determination be required? (to see if the home needs flood insurance)
____What other costs will there be?
____Is there anything else you should know?
____
When Closing Seems Certain
____Have gas or other heating bill transferred to your name as of the closing or occupancy date.
____Have electric service transferred to your name as of the closing or occupancy date.
____Have water/sewer account transferred to your name as of the closing or occupancy date.
____Arrange for garbage collection at your new home.
____Arrange for phone service at your new home.
____Arrange for cable television and internet service at your new home.
____Mail change of address forms to post office.
____Make list of necessary address changes to complete.
____Find new bank if necessary, and open account.
____Arrange for moving truck or service.
____Notify your friends and family and give them your new address.
____Get documents for school transfers for your children.
____Have a yard sale, or otherwise lighten the load.
____Start packing, and labeling the boxes.
____Pack an "essentials" box for your arrival, with toiletries, paper plates, etc.
____Make moving plans (hotel reservations, get maps, etc.).
____
Preparing For Closing
____Get the closing statement at least a couple days before closing and review it.
____If anything is unclear on the closing statement, ask about it immediately.
____Have your insurance policy paid for and ready.
____Note exactly where and when the closing will be.
____Get a cashier's check for the amount indicated on your closing statement.
____Ask real estate or closing agent what you'll need to bring to closing; make a list.
____
At Closing
____Ask a lot of questions.
____Keep a copy of the closing or settlement statement.
____Keep a copy of the mortgage note.
____Keep a copy of the mortgage or deed of trust .
____Keep a copy of the binding sales contract.
____Have everything explained to you until you understand it all.
____Get the keys to your new home.
____
Moving Day
____Have the gas shut off or transferred at your previous address.
____Have the electricity shut off or transferred at your previous address.
____Have the water shut off or transferred at your previous address.
____Cancel garbage collection at your previous address.
____Return library books, rented movies, etc.
____Transfer any prescriptions to the new location.
____Clean the house and dispose of things that won't be moved.
____Double check all rooms and storage areas.
____Turn off lights, lock the doors.
____Leave the keys with the landlord, new owner or your real estate agent.
____
In Your New Home
____Check to make sure everything is still there that was included in the offer.
____Test toilets, faucets, heating, cooling and other systems.
____Put loan payment due dates on calendar.
____Change address on all credit cards and bank accounts.
____Make the rest of the address changes on your list.
____Check taxes to see if they can be lowered (see chapter 24).
____When property tax bill comes, see if you are owed a rebate from seller (see chapter 18).
____
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