Thinking of purchasing a house is daunting & most people will need a loan to do so. Enter the lenders. More that 75% of our clients ask us for advice on mortgage programs, rates & much much more. I'm sorry to say, while realtors understand how the lending process works, we are not experts in the area. We will, without fail, recommend that you talk to several lenders to compare information so you can choose a lender & mortgage program that's right for you.
But there's a trick to it all. Call all the lenders, ask the same exact questions on the same exact day. Did you know that loan programs, mortgage rates & offerings can different from each lender every single day? They can and they do.
A lender is an expert in their area & just like we won't perform a home inspection for you, we recommend a licensed home inspector, we also recommend working with an experience local lender.
First, tell the lender the facts (they may ask to run your credit, it is your decision if you'd like them to or not):
1. Credit score
2. Debt - credit card, student loan, other mortgages, vehicle, etc...
3. Ownership of any other properties
4. How much money you'd be comfortable putting as a down payment
5. Current income
6. Approximate amount you have in the bank
Note: Please give the lender your full financial picture, they can't do their job without knowing all the facts
Now that the lender has the facts, here are several questions for you to ask each lender you talk to &, I cannot stress this enough, on the SAME DAY:
1. What programs do I qualify for?
2. What would my mortgage rate be (assuming that we lock in a rate within 30 days)?
3. What would my monthly payment be?
4. Do I have to escrow my taxes with you or can I pay them separately?
5. What time frame do you need to get the loan done?
6. What are your closing cost fees? Surprises are not fun, especially at the closing table - get all this information up front so you are prepared.
7. If I put more money or less money down, how would the interest rate change?
8. Who will service my loan? If I have any questions or problems after the closing, who can I call for help?
This list will help you get the process rolling & if you are in the Madison area, we are happy to recommend local lenders that we've worked with & have done done a great job for our clients.
Disclaimer: I, nor anyone on my team are lenders & the article you've just read has suggestions, but as the market changes, the questions you will ask your lender can change, as will the information they request from you & provide to you.