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Lenders play an essential role in the real estate process. So, when buyers choose a lender at random, without giving any thought to the person they’re trusting to handle their finances through the deal, things are sure to go wrong. In fact, buyers who don’t put much consideration into their choice of lender will almost always close late, if at all.
To avoid the frustration of losing out on a deal, you’ll need to be careful when it comes time to select your lender. That said, there are 10 things you should be asking any mortgage banker you interview before choosing which one to hire:
1. “What loan is best for me?” Any qualified lender should be able to guide you toward a loan product that will match your goals, budget, and financial position. The right person for the job will give you their honest opinion on what loan is best for you, instead of what loan is best for them in terms of how they’ll be paid out at the end of the deal.
2. “What is the quoted interest rate and the annual percentage rate?” Determining whether a given option will carry additional costs is very important. Also, be sure to check rates across multiple lenders to see if you’re getting the best deal.
3. “Do you offer any discount points, and does this loan carry any origination fees?”
4. “What are all of the costs I can expect?” You should have a full understanding of the expenses that will be involved before proceeding with any lender.
5. “Can you provide me with a loan estimate?” Getting a loan estimate from a few different lenders will give you the chance to compare your options.
6. “How soon can you offer me a rate lock?”
7. “Is there a prepayment penalty?” If there are any additional expenses that may arise over the life of your loan, you’ll want to be aware of them beforehand.
8. “Are you equipped to approve loans in-house?” This will impact how quickly they’re able to work.
9. “How much time do you need to fund?” If you close on a given day, will it take the lender days after that point to fund the loan?
10. “Do you guarantee on-time closings?” When interviewing a lender, it’s important to ask them about the steps they can and would take in the event that they are running behind as the closing date approaches.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.