Shopping for home loans is a great step you can take, and it will be worthwhile to look for a reliable and trustworthy loan officer. As a client, you deserve a good home loan experience throughout the process. To avoid unpleasant surprises, experts at Empower Home Team Raleigh, NC suggest that you put together an important list of questions to ask potential loan officers. These questions include the following:
1. What Kind of Loan Products Do You Provide?
It is a norm for many lenders to offer adjustable-rate and fixed-rate loans. But fixed-rate periods for an ARM (adjustable-rate mortgage) can vary from lender to lender. In addition, you may find a conventional mortgage with terms, which differ from 8-30 years. However, not every loan officer provides the same terms. Plus, not every lender provides FHA, jumbo, VA, and USDA loans, making this an important question to ask potential loan officers.
2. What Will the Payments and Fees Be?
As a homebuyer, among the first things you will need is a budget. Knowing the amount of money you should put up for the home will help to narrow down your search and even keep all your expectations reasonable. When you ask potential loan officers this question, they first review your credit, assets, and income. After analyzing all these details, they will give you an approximation of the amount you can pay and break down the expenses to expect. In the process, you will also know about closing costs, property taxes, and interest, which are factored into payments.
3. How Will You Be Paid?
You can pay a loan officer in various ways. These ways include salary, commission, or a combination of the two. It is crucial to ask this question so you may know how their compensation can affect their referrals/recommendations. For instance, a loan officer can make more money by recommending you to for a loan with a higher interest rate.
4. May I get Pre-Approved or Pre-Qualified?
Getting pre-qualified is much easier than being pre-approved for a loan. Usually, loan officers provide pre-qualifications depending on the details you present, and they don’t look into your monetary situation to make a decision. You can get pre-approved only after you submit an application formally. This is when lenders will closely look at the details you presented, including credit reports, employment details, and income.
5. Which Credit Qualifications Do I Need to Present?
A higher credit score often makes it easier to get a loan. But you may still get ways to purchase a house if you have a lower credit score. Mostly, you will need to pay more for the loan. Every lender has their own terms and conditions. This is why it is important to ask this question early to your loan officer.
In conclusion, finding a good loan officer that can process your mortgage on time and correctly is important when planning to buy a house. By asking some of these questions, you will be confident enough that you have an officer you can rely on and trust.
