The first step in buying a house is talking to a mortgage lender. The lender will tell you how much you can afford, what it will cost you upfront and if there’s anything on your credit that you need to clear up. Buyers often ask me if I could recommend a lender so they can begin the pre-approval process. I usually give the name of a few lenders that I have worked with in the past. I always tell clients if you call lender #1 and for whatever reason you don’t get a good feel then move on to lender #2. The lender you select will need to be someone you like and trust. When buying a home you are not only interacting with your real estate agent, but your lender as well. Be sure to pick someone you don’t mind talking too!
I personally do not think it’s a good idea to use out of town lenders unless you personally have used them or it is a referral from a person you trust. Don’t get me wrong there are some great out of town lenders, but when things go wrong (I have seen it several times) the buyer is upset and frustrated because they can’t walk in to the lenders office to get answers instead they have to leave message after message.
Buying a home is an exciting time and it should be FUN! When you go to meet a lender print these questions out and don’t be shy to ask for any clarification on anything you don’t understand.
1. Ask the lender to break down (step by step) the loan process. Example: What paperwork do you need to provide (make copies don’t give originals)?
2. Who will you be communicating with you as you go through the loan process? Will it be the loan officer or his/her assistant?
3. Are there any local or national programs you qualify for? Many lenders have access and/or know of programs for police officers, military personnel, teachers, low-income, etc.
4. How do you go about locking in an interest rate? When do you lock in an interest rate? How long is the lock in good for?
5. The lender will provide you a good faith estimate. This shows you what it will cost you to get a loan. If you don’t get a good faith estimate ask for it.
6. Ask your lender to tell you about anything that could delay your closing. Can they close a loan in 30 days? Or do they need 45 days?
7. Is there anything you can’t do? Examples: making large purchases, changing jobs, paying off credit cards, etc.
I hope you find this information helpful when considering a lender.
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The first step in buying a house is talking to a mortgage lender. The lender will tell you how much you can afford, what it will cost you upfront and if there’s anything on your credit that you need to clear up. Buyers often ask me if I could recommend a lender so they can begin the pre-approval process. I usually give the name of a few lenders that I have worked with in the past. I always tell clients if you call lender #1 and for whatever reason you don’t get a good feel then move on to lender #2. The lender you select will need to be someone you like and trust. When buying a home you are not only interacting with your real estate agent, but your lender as well. Be sure to pick someone you don’t mind talking too!