Many of the questions that come up when thinking about buying a home revolve around financing & how you're going to make it happen financially.

A great mortgage lender will lead you through the process & help to make it go as smoothly as possible while keeping your best interests always top of mind.

The help reduce some of the anxiety about hiring a lender I've put together a few things to consider during the interview process to ensure you're asking the right questions to make the best decision on which lender is right for you. 

Things to Consider 

1. Are they local?

Often a home search begins online and sometimes that means they also start looking for a loan officer that way too. The problem with this is that online lenders and large banks (such as Bank of America, SunTrust, Wells Fargo, etc) are sometimes more difficult to get through the process with than a dedicated local lender. Different time zones can make it frustrating to get reach your lender when you need them and I'm often seeing clients having more headaches than its worth when they opt for a non-local lender. Local lenders are experts on the real estate market and are knowledgeable about state and city specific lending opportunities to include grants and lending programs. A non-local lender may not know about the great programs that are eligible for this area. Listing agents might also advise their Seller clients away from choosing a buyer with an online lender pre-qual letter given that their success rates are often lower. This is really important when we are competing with other buyers for a house, we need to show that we have a strong local lender on our team to help get the transaction done & smoothly. There is also immense value in you &/or your agent being able to literally walk into your lender's office to ask questions or seek assistance when needed.  

2. What are their working hours?

A lender who works not just 9-5 but around the clock is critical to get through the home buying process seamlessly. It’s important to find a lender who is available when you need them which is often at night or on the weekend. If we're making an offer on a home over the weekend, I need an updated pre-approval letter right then, we might miss out on the home if we can't get it until Monday. There is huge value in having a lender on our side who has flexible hours & is easily reachable.

3. Are they reputable?

It’s important to find a lender with a good reputation. Just like you wouldn’t stay at a one star hotel with horrible reviews, you wouldn’t want a lender with a history of leaving their customers hanging at the closing table.You want to work with a lender who you know will be giving you accurate information and who you can depend on to get you through to your closing so you can purchase your dream home.

4. Do you have a relationship with them already?

It’s a great idea to contact your banking institution to see if they can offer you some good deals since you already bank with them.If you’re a member of a Credit Union that is definitely a great place to check since Credit Unions often have the best mortgage programs available for their members. Sometimes the larger banks don’t really offer any special incentives with their loan programs but it’s still a good idea to double check. Especially if you’re on a first name basis at your local branch!

 

Questions to Ask the Lender

Once you've identified a few solid lenders (and you should contact at least TWO to get a comparison for products available to you), here are some additional questions to ask them before you apply for your mortgage:

• How much will my closing costs be?
• What loan programs do you offer?
• Are you able to match competitor pricing?
• Do I qualify for any grants?
• What fees do I need to pay upfront?
• Are your rates, terms, fees, and closing costs negotiable?
• Will I have to pay private mortgage insurance? How long will it be required? Can it be paid upfront one time?
• How long can I lock in a rate?
• Do you offer a float-down policy?
• Are there any prepayment penalties?
• How much can I afford to borrow?
• When would my first payment be due?
• How quickly can you get a full approval?
• How quickly can you close the loan?

 

Keep in mind that they are trying to compete for YOUR business. Let them know what you’re looking for and what you’d like to pay and let them find a program that fits your goals and needs best.