Questions to Ask Your Lender
When you’re getting ready to enter into the home buying market, there is so much to prepare for. Something that a buyer may not always realize is that when it comes to finding a lender that suits your specific needs and goals, your best bet is to treat this process like a job interview. It’s not a “one size fits all” kind of situation.
So we asked loan officer with Steadfast Mortgage, Amanda Gilbert, for some input on what kinds of questions to ask when interviewing potential lenders and here is what she shared:
What is the cost is of working with them or their company?
Every lenders fee can vary drastically, so it’s important to know up front where your dollars are going.
Are your appraisers and appraisal panel local or national?
Local appraisers have more in-depth, timely knowledge of the market, making them a great resource for information. National appraisers are still able to get the job done, however, using someone local who is familiar with the local market dynamics is, in my opinion, the best option.
How will we be communicating?
Communication will either happen with the loan officer directly or with a member of their team. This is important because there comes a point where a lot of buyers feel pawned off to a team member after already establishing a relationship with the loan officer. It’s essential to communicate if/when other people will be entering the process, otherwise trust can be lost.
How long have you been in the industry?
If your loan officer is new to the business, but you enjoy the way they interviewed, just ensure that they have an exceptional team to back them up and assist where help is needed. Nobody can learn without experience, so this is an important aspect to look at.
What loan programs do you offer and will you provide different loan options based on my unique qualifications?
This can sometimes get overlooked, but depending on where you are financially and what you do for a living, there may be special offerings or programs that can help you save some money along the way.
Do you service your own loans or are they sold after closing?
Most mortgage companies don’t service their own loans, so buyers need to know what to expect after the closing occurs.
What is the difference between a pre-qualification and pre-approval, and which one do you provide?
This is extremely important. A pre-approval letter and a pre-qualification letter are not created equal since pre-approval letters take a much deeper look into your finances. This doesn’t only include your credit score and pay stubs, but also W2’s, tax returns and more. A pre-qualification is a broader idea of what the lender believes you may qualify for.
Can I continue to reach out after the closing with questions about my loan?
There are always questions that come up after the closing, so it’s important to know that whoever you choose to work with will still be around to answer those after you’ve left the closing table.
Shopping around for the perfect lender is important so soon-to-be homeowners should feel empowered to do so. If you’re working locally with a Realtor (like us!), that person can typically guide you towards a great lender, but it’s always good to be prepared with your own set of questions to ask as well.