9 Questions to Ask Your Lender

The start of your first home-buying journey can be intimidating. This week I had two different buyer consultations and after we discussed their lifestyle needs and goals it was time to talk budget! How do you establish a budget? 

My recommendation is that buyers speak to at least three lenders during the pre-transaction process. You have options when it comes to different loan products, and sometimes on those lender calls it’s hard to really understand what the heck half of this loan jargon even is! 

As a buyer, you want to know what payment plans, rates, and required down payment options are even available to you in your budget and neighborhood. Depending on your purchase amount you may be able to put less than the standard 20% down payment if you’re purchasing in certain communities or certain price points you could also enjoy closing cost credits, or reduced rates from some lenders. 

Because the process can be overwhelming if you haven’t done it before I created this list of questions that I always ask lenders when I’m purchasing a new property. Now you can ask away with confidence and get a good grasp of what’s available! 

Questions I would ask Lenders on Your Intro Calls

1. With my financial profile what is my maximum loan amount, and what would the required down payment be?
2. Can you please explain the difference between adjustable rate mortgages and fixed mortgages? 
3. Are there programs or products you offer that would allow me to put less than 20% down?
4. Are there certain neighborhoods or price points for homes that your products offer incentives for? Lower down payment/reduced rates/ credit for closing costs?
5. How long do you see most of your clients keeping their loan products before selling, or refinancing?
6. Do I qualify for an Interest-Only loan? Can you explain what that product is and what the required down payment would be?
7. What loan costs can I expect to see at the close of escrow? At my maximum budget, what are my estimated closing costs for this loan?
8. Do you offer relationship discounts? If so, how long will my money have to stay with your institution?
9. I’m married or buying this property with a partner. One of us “looks better on paper” financially. Would it be possible for only one of us to qualify for the loan? And if so would that help our financing options? Could the partner who was not a borrower still co-own the property?

I’m not a lender, financial advisor, or CPA so it’s important to consult those professionals before making final financial decisions, but hopefully, this is a great start for your initial lender conversations! If you’d like my list of lenders that past clients have worked with successfully reach out! 

Get your budget set, and then we’ll find the perfect home!