The Mortgage Process

Finding a Lender

The first step of the home buying process is to get a pre-approval letter from a lender. It's essential to ask your potential lenders some questions to make sure they are a good fit for you.

Don't understand something your lender says? Stop and ask for clarification. This is your home buying journey, and you deserve to understand the process every step of the way.

A pre-approval is only valid for 30-90 days, so while you can start talking to lenders, you'll want to wait on getting that pre-approval letter until you're ready to start submitting offers.

Questions to Ask Potential Lenders

  1. .What type of loan do you recommend for me? No one type of mortgage loan is superior to another, but whichever you choose, you need to know why it's best and how it works.

  2. Will my down payment vary based on the loan I choose? Let your lender know if you're tight on cash or don't want to be cash poor. Loans vary in their down payment requirements. They can help you find the best option for you.

  3. What is the interest rate and the annual percentage rate (APR)? Everyone talks about the interest rate, but the APR is just as important. It combines the interest rate with the fees a lender charges to originate your loan.

  4. Can I lock in an interest rate? If so, for how long? If you think rates will be increasing, ask if you can lock it in for a set period of time.

  5. What will my closing costs be? Are they part of my loan, or will I pay them in cash at closing? Remember, closing costs usually run 3-6% of your loan value, so you need to know how they’ll be covered.

If you are looking for further direction when it comes to finding the right lender, contact us and we can help you!

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How Will the Home Showing Process Work?