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Buying a home is a BIG PROCESS and you need to be ASKING QUESTIONS to make sure the lender is knowledgeable and looking out for your best interests.
Here are the TOP 10 QUESTIONS you should ask a lender. (I’ll give you a little insight on each.)
1. Which type of mortgage is best for me?
This question will help you determine whether the LOAN OFFICER is pushing a product or LOOKING OUT FOR YOUR BEST INTERESTS. When you ask this question, the loan officer should respond with questions about your situation and goals for a mortgage before ever recommending a specific product.
2. How much down payment will I need?
This will depend on the answer to question 1 👆️.
3. What is my interest rate?
This is where the conversation starts a lot, especially in today’s rate environment. When you ask about rates, MAKE SURE YOU GET A FULL FEE SHEET so you can see what lender fees are associated with that rate. It’s not enough to just compare rates.
4. Are you doing a hard credit check on me today?
We talked about this in a previous email. Soft checks often times work just as well when you are in the early stages of the homebuying process.
5. Will I have to pay mortgage insurance?
This will depend on the answer to question 1 👆️.
6. What will my monthly payment be?
THIS IS THE MOST IMPORTANT THING TO KNOW!!! In fact, if a loan officer doesn’t ask you what a comfortable monthly mortgage payment would be for you, then they are not working in your best interest.
7. Do you have an origination fee?
An origination fee provides additional profit for the lender beyond what’s built into the interest rate. Most times you will pay an origination fee in order to “BUY THE INTEREST RATE DOWN.”
8. What other closing costs will I have?
You should be provided a Loan Estimate (fee sheet) pretty early in the process so that you can see all the fees associated with getting a mortgage.
9. How — and how often — will I be updated on the loan’s progress?
Who will be your point of contact throughout the mortgage loan process? How will you be updated on the progress: by email, phone or an online portal? A great lender will have a STANDARD PROCESS OF COMMUNICATING.
10. How long does it take to close my loan?
A 30 day closing is the industry benchmark. Quicker closings happen all the time but remember, the seller needs to pack, you need to pack, and there are a lot of third party services required to close the loan. GIVE YOURSELF AND THE PROCESS PLENTY OF TIME.
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