When you begin your home search and start shopping for a lender, try not to make a snap decision you may end up regretting down the line. Your home is a huge investment, and choosing the right lender can be a challenging task.
With the help of these questions, you should be able to find the right mortgage lender to fit your needs.
- Is it currently an ideal time for me to buy property?
A lender’s response to this question will vary based on your circumstances. However, their opinion can be helpful with determining your debt-to-income ratio, how much down payment you will need to put down, and other factors.
- What types of home loans do you offer?
The more options a lender offers, the more likely they will have a loan program that fits your unique needs. Although everyone may offer fixed-rate mortgages and Adjustable Rate Mortgages (ARMs), the lengths of the fixed-rate periods on ARMs can vary among lenders. If you are purchasing a condo, you may want to ask if they offer any special financing options specifically for condominiums.
- Do you handle Underwriting in-house?
According to investopedia.com, underwriting is the process lenders use to determine your creditworthiness and whether you will qualify for a mortgage loan. It is important to know if the Underwriter is in-house and if you will need to communicate with them or the lender throughout the underwriting process.
- Can I contact you after office hours?
Since issues often occur after business hours, it is a good sign when a lender provides you with their cell phone number. Follow up this question with asking about their best method of communication, and how quickly you should expect updates.
- What is your average loan processing time?
Processing time can play a huge role in the home buying process because some sellers may be looking for a buyer who can get their financing squared away as soon as possible.
- Who will be servicing my loan?
Some lenders service mortgages themselves, while others outsource servicing. Whoever is in charge of servicing your loan is responsible for collecting your mortgage payments and handling missed payments. Although you do not get to pick who services your loan, it can be helpful to be prepared with all of the information you need.
Are you looking for suggestions on a reputable lender who will work hard for you? Click here to view our list of lending and financial help partners we have worked with and recommend. Please let them know that Michele Harmon Team sent you!
Would you like to learn more about the home buying process? Call Michele Harmon Team at 713-818-1330 today! We would love to walk you through the process!
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