Posted on April 8, 2022

 

14 Questions You Should Ask When Seeking a Home Loan

 

When comparing mortgage lenders, it’s important to know there isn’t a one size fits all solution. There are various types of mortgages, each with its own set of qualifications, terms, and benefits. Before you apply for a home loan, consider the following questions to determine which loan is the best for you.

Get Prepared by Asking These Questions

Take the time to speak with several different lenders. You’ll find that not all lenders offer the same loan options, and you’ll want to ensure that your lending needs are matched with the best options.

Interviewing them will also allow you to evaluate how they communicate with you: do they rush you, do they simply respond to you what you ask, or do they ask you questions to better provide you with the necessary information?

  1. What is a mortgage, and how does it work?
  2. What types of home loans do you offer?

Offerings can vary by lender, such as conventional, government-backed, fixed-rate, and adjustable-rate (ARM).

  1. Which mortgage option would be best for me?

Do they probe for answers in order to identify which loan best matches your needs?

  1. How do I qualify for a home loan?
  2. What’s the difference between prequalified and preapproved?
  3. How do I get preapproved for a mortgage?
  4. What are your rates and fees?
  5. Do you offer points?

Points are fees paid to reduce your interest rate and are optional.

  1. How much should my down payment be?

The amount can vary by lender and the type of loan you choose

  1. What’s included in my mortgage payment?  

It can vary based on your loan terms but typically includes principal, interest, escrow for taxes and homeowners insurance, and possibly private mortgage insurance (PMI).

  1. Do you handle your own underwriting?

This is the verifying of loan documents, sometimes outsourced to a third party.

  1. How long does your loan processing take?

Depending on the loan type and purpose, the average range is 30-60 days.

  1. What will my expected closing costs be?
  2. What do I need to bring to the closing appointment?

Your loan officer provides a checklist that includes items such as ID, proof of homeowners insurance, cashiers/certified check, and a copy of your contract.

If you’re in the market for a home loan, call TexasLending.com at 800-346-8047. They are a family-owned mortgage lender located in Dallas, TX. TexasLending.com has won the Consumers’ Choice Award each year since 2007 due to the high level of focus and service they provide to their customers. 

 

Tags: Mortgage Rates, Texaslending.com, Home Mortgage, Mortgage Payments, Home Loan, Mortgage, Mortgage Options, {requalified, Preapproved, Mortgage Fees,