Questions to Ask a Lender When Interviewing
When interviewing a mortgage lender, it's crucial to ask questions to ensure you understand the terms of the loan, the lender's services, and how they will support you throughout the mortgage process. Here are some questions you might consider asking:
What types of mortgage loans do you offer?
Understand the range of options available to you, such as fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, etc.
Will I qualify for any special programs?
One example is a first time home buyer’s down payment assistance
What are the down payment requirements for each type of loan?
Determine how much you'll need to put down upfront for the loan you're interested in.
What are the closing costs?
Get an estimate of the fees associated with closing the loan, including origination fees, appraisal fees, title insurance, etc.
What documentation will I need to provide?
Clarify the paperwork and documentation required for the application process.
What are the qualifications for approval?
Understand the lender's criteria for loan approval, including credit score requirements, debt-to-income ratio, employment history, etc.
Do you offer rate locks?
Inquire about options for locking in your interest rate to protect against rate increases during the application process.
What sets your lending institution apart from others?
Learn about the lender's unique services, benefits, or programs that may differentiate them from other lenders.
When will the lender be available to call/text to review numbers and discuss options?
Ideally, your lender is as easy to get ahold of as your real estate agent.
How do you handle communication throughout the loan process?
Clarify how the lender communicates with clients and how often you can expect updates on your loan application.
What happens if I experience financial difficulties during the loan term?
Inquire about options for refinancing, loan modifications, or other assistance programs available if you encounter financial challenges in the future.
These questions can help you gather important information to make an informed decision when choosing a mortgage lender.