When you’re getting pre-approved for a home loan, there are three key questions to ask that will help you make sure you’re getting the best deal possible.
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In the past, I’ve mentioned that the first step to buying a home should be getting pre-approved for a loan with your lender. When you speak with your lender about this, be sure to ask these questions:
1. “What type of loan is best for my situation?” The common loan types are the FHA, VA, and conventional, though there are some special programs for bonds, first-time buyers, and more. Your lender will be able to help you determine which loan type is most appropriate and beneficial to your situation.
Following this, you’ll want to ask for a loan estimate. This sheet will have a list of the expenses you should expect moving forward, including your closing costs and your down payment. You’ll want to compare this sheet to other lenders so you’ll know how much money you’ll need to bring to closing.
“Shop around; make sure you’re getting the best rate possible.”
2. “What’s my interest rate?” Be sure to ask this up front so you can compare this figure to other lenders, as well. Shop around; make sure you’re getting the best rate possible.
3. “How long will it take for me to close?” Some lenders will be able to do it faster than others. Typically, closing takes 30 to 45 days, but asking to make certain will help you prepare for the future.
Sometimes, lenders don’t give you the thorough answers you’ll want in order to be truly ready. In these situations, it’s important to press the lender to make sure they’re giving you all of the important information up front. If they can’t do that, treat it as a massive red flag and try to find a lender who will.
If you have any further questions about this, please feel free to reach out to me. I’d be happy to advise you.
