Buying and moving into a new home is one of life’s great experiences, especially if you’re buying your first home. From getting that pre-approval to the “yes!” response on an offer to closing and moving in, every step is exciting. And while the process is engaging and fun, it’s important to prepare for moving day […]
5 essential questions to ask your mortgage lender
Buying a home can be stressful, especially if it’s your first time purchasing. Preparing yourself ahead of time with the correct questions will help you know what to expect and ease concerns.
Asking the right questions will also help you find the lender that works best for you and your needs. Lenders at SmartMortgage are always happy to answer any questions you may have. We are committed to providing you with the best possible experience.
What type of loan do I qualify for?
Your unique circumstances will determine what type of loan you qualify for. For example, if you are a veteran, you may be eligible for a VA loan if you meet eligibility requirements. Some popular loan types include:
How much house can I afford?
Asking your lender how much house you can realistically afford is one of the most important questions to ask! Purchasing a home is an expensive process, and you’ll need to know what your budget is. After providing your lender with some financial information, like your bank statements, they will let you know how much they can pre-approve you for.
Is underwriting handled in-house?
Underwriting is the process of verifying all of the information that you have provided to your lender. This process is essential in qualifying you for a loan. An in-house underwriter can often provide quicker turnaround and approval times than underwriters who are outsourced. No delays mean improved chances of getting your house and no fees for missing deadlines.
What happens if my home appraisal is low?
If the house is appraised lower than what you’ve been approved for, it can throw a wrench into your plans. Ask your lender what their process is if an appraisal comes low. For example, if a home is selling for $200,000 but is appraised for $170,000, your lender may lend you the appraised amount. However, you will have to come up with an extra $30,000 on top of the down payment.
Remember that this isn’t your only option! You can opt to back out of the deal or negotiate with the seller for a lower selling price.
When will I close on the home?
Your lender will give you an estimated closing date when you begin purchasing a home, which is typically 6-8 weeks. This date may or may not change for a few reasons. For example, if the title isn’t clear, home repairs are being made, or there are errors in documentation, the closing can be delayed.