If you are not paying all cash, you will need a lender on your team. Remember you don’t have to put 20% down to purchase your home! You may be able to use low money down programs. How do you plan on finding a lender that best suits your needs? Do you plan on asking a family member or going online?
The key is knowing what questions to as them. Since you will be making a major financial purchase, you want to find the best lender you can find. They are a major part of your team so make sure you speak with a few before making a choice. Keep in mind, no two lenders are the same and you will be speaking with your lender multiple times throughout the home buying process through emails and phone calls.
1. How many families did you help last year?
This will give you insight on their current volume and workload. Do they have the experience that will assist you in your transaction? More volume in not necessarily better since they may work with a team to assist them. If you are looking to purchase an investment property you could ask how many investors they helped last year.
2. What is your value add?
Every loan officer can most likely provide you a loan. But, what else do they bring to the table? Do they have the confidence and drive to finish your deal? Do they treat the money like it was theirs? Initially they should be responsive to you as well.
They should also be upfront about what you want to pay for closing costs, monthly PITI (Principal Interest Taxes Insurance) and long term goals. There are some calculators that show a sample PITI and its important to know the current rates as well as if you are getting a fixed or adjustable rate mortgage.
These two questions may seem like common sense, but it is important to pick a lender who is best suited for your needs. These two questions should provide some insight and assist you on selecting your loan officer.