Houston Homebuyers: Interview Your Mortgage Lender With These 7 Questions
Most Houston homebuyers have heard that it is important to interview several real estate agents before they decide to use one. However, the majority of Houston homebuyers go with the first mortgage lender that they meet. Even if your lender comes recommended to you, you still want to ask them a few basic questions to see if you are getting the best loan for you.
Ask lenders these 7 questions as you shop around for a mortgage.
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What programs do you offer?
If a lender is only trying to push you into one loan without talking to you about your options, it can be a red flag. You want to find a lender that has different programs to offer.
Mortgage loans are not a “one-size fits all” kind of product. Find a lender that is working to find the best mortgage for you.
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Are you familiar with this program?
If you are looking for a specific type of loan, like a United States Department of Agriculture loan, you need to work with a lender that is approved in the program. Make sure you are finding a lender that is approved and familiar with the type of loan to avoid slowing down the process.
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What are the qualifications for the type of loan?
Different loans have different qualifications that need to be met. The credit scores can range based on if you are getting a conventional loan or a VA loan. If one lender doesn’t think that they can qualify you, then keep looking to see if you can find another.
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Can I get down payment assistance?
There are some programs that provide down payment assistance if you meet the requirements. A larger down payment can help you secure a lower interest rate and avoid paying for private mortgage insurance (PMI).
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What fees will I pay and what will the interest rate be?
While lenders are not going to be able to provide you with these exact numbers at the start of the process, they can give you an estimate. They will differ from one lender to the next, so it is an important thing to compare.
Mortgage rates can fluctuate, so you will get your best comparison if you talk to multiple lenders on the same day.
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Can I get an in-depth pre-approval letter for my real estate agent?
Real estate is moving quickly all around the country right now. If you are in the process of purchasing a Houston house in a seller’s market, you will want to provide your real estate agent with a pre-approval letter from your lender. This document can be the thing that makes the difference of getting your offer approved in a multiple offer situation.
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Can I expect timely communication?
You want to work with a mortgage lender that you can communicate with quickly and easily. Do not go forward working with a lender that you have to call multiple times before they get back to you.
Ask if there is a second person in the office that you can contact in the event that the lender is out of the office. Clear and fast communication is key to keeping the process moving.
Your mortgage lender will have a large impact on the mortgage loan that you could be paying for thirty years. Find a lender that is going to work to get you the best loan for you, at the lowest price. Ask friends and family for referrals and trust your instincts.