5 Questions to Ask a Potential Mortgage Lender
JD Power reports that 21% of home buyers said they had buyer’s remorse over choosing the wrong lender. The loan officer is just as important as every other member of the real estate team. Choosing the right loan officer facilitates transparent communication and enables the borrower to have an accurate and expeditious loan closing.
Here are some questions potential borrowers should ask potential lenders when they begin the journey to homeownership:
- How are the current economic conditions impacting rates? Mortgage rates depend on the size of the down payment, credit history, debt-to-income ratio, economic conditions, and many other factors. An honest lender will be transparent about lending conditions and loan products.
- What personal debt pay off may benefit the borrower? Debt repayment will not have an automatic impact on the credit score. Ask the lender about what personal debt pay off will benefit the credit score.
- How much will I need to pay at closing? Get a detailed breakdown of how much is owed for the down payment, closing costs, and any other up-front costs and be prepared.
- Who will service the loan? The servicer deals with the actual mortgage payments and any missed or late payments. Some lenders service their own loans and others outsource servicing to another company. It’s important to know what companies they are working with.
Choosing the right lender can turn an ordinary home buying experience into an extraordinary one.