Things you should ask your lender
- 08 September, 2021
When looking for a mortgage lender, it is essential to research and ask the right questions. Mortgage lenders can vary in terms of their rates and services offered. In this blog post, we will go over some questions that you should ask when interviewing your potential mortgage lender to ensure they are the best fit for you!
How many families do you help per year?
Asking your lender about the number of families they help will show you whether you can trust them to handle your mortgage and future needs.
What kinds of mortgages do you offer?
Lenders offer different products depending on whether you use a broker, direct lender, or bank. Ensure you know which type of mortgage product they specialize in or can offer you (especially if you have a unique situation).
Do I need to have a co-signer?
Some lenders will require that one or more people sign on for the loan with you, meaning your credit score needs to be higher than theirs. It is essential to ask this question upfront!
How long will it take me to close on my loan?
Most sellers want you to be able to close quickly. Compared to cash offers on homes, offers with financing contingencies tend to take longer. Depending on your situation and how competitive your request may be, it's crucial to have the flexibility to close early.
Will you sell my loan after it closes?
It's important to know what will happen to your loan after it closes. If it is sold on the secondary market, that will change who services your loan and what guidelines it must meet.
What fees will I owe at closing?
Understand all of your fees upfront will help you pick the right lender for the job. While it makes sense to want the least amount of costs, the most important thing is choosing a transparent lender about these fees. Items like discount points are often hidden in the fine print to make what they offer to seem much more enticing.
How large of a down payment do I need?
Depending on who you use and the type of loan program will determine how large your down payment needs to be. This can be important in setting the right expectation and not wasting your time. You can also find out if they have access to specific down payment assistance programs in your area.
Will you be issuing me a pre-qualification or a pre-approval?
There is a significant difference between being pre-qualified and pre-approved. Before you head out and start your home search, you will want to make sure that you are prepared to make an offer. This can be done with a solid pre-approval, meaning that you have submitted documentation.
It's essential to ask your lender the right questions when you need a mortgage. There are no one-size-fits-all solutions, but by asking these eight key questions, you can find the best fit for your home financing needs and goals.
Which question about mortgages didn't we answer? Schedule an appointment with us today if something on this list left you confused or curious!
