Questions to Ask Your Mortgage Loan Originator

The latest from the 2010 required Realtor Update course.

Consider these when choosing your next lender.

*What will the monthly payment be for every month of the loan, and could it increase?(When could it increase? What would my new payment be? Could my monthly payment incrase more than once?)
*Does the monthly payment include an escrow amount to pay for my property taxes and homeowners insurance? Or must I pay these costs on my own? If I have to pay on my own, can you give me an estimate so I can budget accordingly?
*What is the term of the loan (for example 15 years or 30 years)? How many payments will I have to make? Would the loan be paid off at the end or would I still owe a "balloon" payment?
*Will I have to pay prepayment penalties to refinance and pay off the loan early? If so, how much, and when would they apply? If the loan has an introductory or tease rate, can I refinance without penalties before the rate resets and my payment increases?
*Is the person I am speaking to on my mortgage a state of Colorado licensed loan originator?

DORA, the Department of Regulatory Agengies in Colorado, suggests that people verify they are working with licensed lenders or people who are exempt from licensure. Further, they recommend checking out these tips:
*Consumer Corner: availableon the Division's website at http://www.dora.state.co.su/real-estate
*Complaints with the Commission can be made online by clicking the "complaint process" button on the Division's home page.
*Look up mortgage licensees online by clicking the "search licensees" button on the Division's home page.