Choosing a mortgage lender? Know what questions to ask a potential lender
You’ve found the perfect house; now you just have the find the perfect mortgage lender. Instead of committing to the first bank or lender you find, take the time to research and ask questions of potential brokers. Before signing up for a loan, ask some of these questions of your potential lender to ensure you find the best mortgage lender for you.
- How long have you worked as a mortgage lender? Mortgage lenders are not the same as regular bank employees; they must pass a special certification test in order to become a lender. Professional mortgage lenders will have the expertise and experience to lead you through the home loan process as painlessly as possible.
- How many transactions like this have you completed? Some mortgage lenders are specialists, focusing only on transactions such as FHA purchases, reverse mortgages, and more. Likewise, other lenders are generalists and have a wide bank of knowledge about many different types of transactions.
- How many lenders can you access? Some mortgage lenders only work with two or three banks or loan companies, limiting your options on the kinds of loans you can get. The more lenders they can access, the better chance you have of finding the perfect loan or best interest rate.
- Can you recommend an appraiser, home inspector, or title agent? Mortgage lenders are professionals in the field of real estate and deal with buying and selling homes every day. Because of this, they should be able to recommend several reputable appraisers, home inspectors, or title agents and even schedule these services on your behalf.
- How will you update me throughout the process? Discuss how often you’d like to be updated throughout the loan process. Do you want to know every detail as soon as it is processed, or would you prefer to sit back, relax, and wait for closing? Discussing how you want to updated upfront can prevent miscommunications during the loan process.
- Do you have references from previous clients? When choosing a mortgage lender you are the hiring agent; because they will be working for you and your best interest, you want to ensure they are someone you can trust. Asking for references or reviews from previous clients is one way to ensure your potential lender is the best fit for you.