Almost all first home buyers will acquire a mortgage loan to help them purchase their new property. A few will purchase with all cash, and no mortgage financing. But in high-cost areas like the California coast, it’s usually necessary to get a mortgage loan. So you’ll need to find a great mortgage lender for your team.
When interviewing prospective lenders, ask each of them the same type of questions. See how they respond. Here are some things to ask them and evaluate, so write down these questions and take them with you to your interview.
- What type of loan programs do they offer? Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), etc.?
- Are they familiar with down payment assistance programs? Can they help you pay for closing costs?
- What are their rates compared to other lenders? Do they charge upfront fees? What are their initial loan fees? How much will they charge you for a credit report and an appraisal?
- Will your monthly payment be an all-inclusive payment, which includes taxes and insurance, or will you have to pay those separately?
- How often is he available to answer your questions? Does his communication style work with yours? For example, does he prefer phone, email, or text message?
- How many years has she been licensed? Has her license always been maintained in good standing? Does she attend continuing education courses to further her knowledge?
- How many first-time homebuyers does he serve? What are some of his success stories? Does he have recommendations from any of his clients?
- Will she sit down and explain all the paperwork with you? Will she be there to answer your questions when you sign the loan documents?
- Is he responsive in returning your calls right away? Does he have an upbeat, cheerful attitude? Is he passionate about his service and his job?
Keep in mind that while you are interviewing your prospective lender, the lender will also be interviewing you. He or she will want to know if you are the type of client they can work with.
- Did you get all requested documents turned in promptly? Are you on time to appointments?
- Will you be available when needed to sign loan documents?
- Are you responsive when your lender calls you?
- Are you easy to work with?
- Do you have a good attitude?
- Can you adapt to changes in the loan program?
- Are you willing to cooperate and do your part?
- What is your communication style?
Since you will be interviewing each other, and discovering each other’s working style, there will be lots of questions and answers. So take good notes!
Read more in our book, "Buy Your First Home", http://tinyurl.com/dy2wjx4.
