Your very 1st step in your home search needs to be to a lender you’re most comfortable with. Go right in, sit down with a loan officer (or call ahead), spend 30-60 minutes and figure out what your maximum budget is. If you start looking at homes before getting pre-qualified, then you might be getting your hopes up. If intending to hire a Realtor, they’ll take you a lot more seriously if you’ve accomplished this step already. As far as the average consumer is concerned, there are 2 types of lenders. Those who service their own loans and those who package up your loan and sell it to a bigger bank. If customer service is important to you down the road, which I’m sure it is, then make sure that’s one of your questions. Here’s a few more to get you started:
1. How much does a loan application cost?
2. Can you estimate and explain your fees?
3. What are “points,” and should I pay them?
4. What is mortgage insurance? Can I avoid it?
5. How do I verify the exact terms of my loan?
11. What is a mortgage pre-approval/pre-qualification?
12. How long does a loan typically take to fund?
13. How do you determine what the down payment is?
14. Can I get a mortgage if I’m self-employed?
15. Are there any special programs or grants I could take advantage of?
6. What will my mortgage rate be?
7. How does my credit score impact it?
8. What’s the benefit to locking it in?
9. Is a fixed rate the best choice?
10. Would 15 or 30 year term be better for me?
16. What will the closing costs be for the loan? What’s the HUD-1?
17. How much savings should I have after the loan funds?
18. When are my monthly payments due?
19. Is there a pre-payment penalty?
20. Who should I call if I need help after my mortgage closes?
Warning: To avoid any of these details changing, don’t take on any new debts, make any big purchases, or switch jobs during the process.
If you need a helping hand through the process or a referral for a good lender, Contact me to let me show you what I have to offer.
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Other Resources:
- Playing 20+ Questions With a Real Estate Agent
- Playing 20+ Questions With a Contractor
- Playing 20+ Questions With a Title/Escrow Company