Are you thinking about buying a home? This is very exciting! Interest rates are currently at an all-time low. Getting your finances in order before starting your home search is such an important step in the process and a bit of planning and preparation can go a long way when it comes time to make an offer on the perfect new home. As a result of being prepared with a loan program and pre-approval, you are likely to be a stronger candidate in the seller’s mind when they are reviewing your offer.
Keep in mind that not all lenders or loan programs are created equally so it is important to shop around and understand the different options available to you. We’ve put together a quick guide to help you know what to ask your lender so you can make an informed decision as to what lender and loan program to choose.
20 Questions to Ask Your Lender
- Do you have a number of different loan programs available?
- What kind of loan would you recommend for me and what are the advantages and disadvantages of each suggested loan structure?
- What is the current interest rate and is the rate quoted the lowest for that day or week?
- For the loan offered, what is the Annual Percentage Rate (APR)?
- Is the loan rate adjustable or fixed?
- What are the discount points and origination fees?
- What are all the costs of the offered mortgages?
- If the rate is adjustable – how will the rate and loan payments vary?
- What are the qualifying guidelines for this loan?
- What is the lender’s required down payment for this loan?
- Which documents will I need to provide?
- Can you explain closing costs?
- Will the lender guarantee the GFE (Good FaithEstimate) of settlement charges and loan terms?
- Does the lender offer a loan rate lock and is there a fee for the rate lock?
- Is there a prepayment penalty?
- Are you equipped to approve loans in-house?
- How much time do you need to fund the loan?
- Will mortgage insurance be required?
- Can the term of the loan be extended and is there a cap on payment adjustments?
- Is there a cap on payment adjustments?
Download Our 20 Questions to Ask Your Lender
Recommended Lenders
Not sure who to call to get started with the loan process? There are a lot of great lenders out there. Here are a few of our favorites.
Tristen Hunt | NMLS ID: 502222 | Caliber Home Loans
Mobile: 503.515.6142
Email: Tristen.Hunt@CaliberHomeLoans.com
Todd Gydesen | NMLS ID: 89835 | Vantage Mortgage Group
Mobile: 503.312.4686
Email: Todd@VantageMortgageGroup.com
Jim Abreu | NMLS ID: 1169887 | First Republic Bank
Mobile: 503.471.4940
Email: Jabreu@FirstRepublic.com
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