As you go through the home shopping process, one of your first tasks is finding the right mortgage loan officer to work with. Now more than ever, homebuyers have a multitude of mortgage options, ranging from a hometown team to large online providers. How can you determine which one is right for your needs?
Before you decide to work with any mortgage loan officer, you need to trust that you’re working with the right one to help you maximize your mortgage and get closer to the keys for your new home. As you shop between options, here are five questions you should ask your mortgage loan officer to determine who is best for your needs.
What type of mortgage is right for me?
Not all mortgages are created equal. Different mortgage types are designed to serve a variety of buyers. While a conventional mortgage may require a larger down payment and higher credit score, an FHA mortgage or VA loan have lower requirements for entry, which can make home ownership more accessible.
It will only benefit you to learn about the different mortgage types, which is why this is one of the first questions you should ask a mortgage loan officer. Our team can help you go through all the different options and narrow down which type of mortgage would be best for your situation.
What is your pre-qualification or pre-approval process?
Pre-approval and pre-qualification may sound alike, but they are two different terms. Pre-qualification only means that a home buyer may be eligible for a home loan, while pre-approval means a lender has agreed to extend you a loan under specific terms. Those with a pre-approval letter often have the edge over those who only have a pre-qualification letter.
Your mortgage loan officer can help you explain the specific differences between pre-qualification and pre-approval and help you go through the right process. They can also walk you through the pre-approval process (which often requires an application and credit check) to get you ready for home shopping.
How much will I need for a down payment?
The amount of money you will need for a down payment varies depending on several factors. These may include your overall budget, which type of mortgage you are looking for, the lender requirements, and your current financial situation. Asking about your down payment ahead of time can help alleviate any confusion as you work through the home loan process.
Working with a mortgage loan officer, you can get an idea of what to have ready for a down payment based on your ideal monthly payment, home shopping budget, and loan type. Your loan officer can also help you identify ways to get help towards your down payment, including any down payment assistance programs you could qualify for.
How often will we be in contact during the process?
No matter how you look at it, shopping for a home can be a stressful process. That’s why it’s so important to have a mortgage loan officer in your corner from the moment you take your first tour, to the moment your bid on a new home is accepted.
It’s okay to ask your mortgage loan officer how often they expect to be in touch during the process, especially during the underwriting process and moving towards closing. A good mortgage loan officer will provide transparency and insight throughout the home shopping process and set clear expectations for how often they will be in touch with requests and advice.
How long do you anticipate the process taking from start to finish?
The mortgage underwriting process is not usually fast. By some estimates, it can take up to 45 days to closing and may go even longer for those getting a government-backed loan. Understanding up front how long the process can take will give you an advantage in everything from planning for paperwork, to when to call the moving company.
Depending on what type of loan you are considering and what type of home you are buying, a mortgage loan officer will help you set expectations for how long things will take. They can also give you advice on how to keep things moving quickly, including what to prepare at which phase of the process.
The dedicated team of mortgage loan officers at SESLOC Credit Union understands that every mortgage process is unique. That’s why we’re here to provide one-on-one attention for every home buyer to find the right mortgage for their needs. Contact one of our mortgage loan officers today to get all your questions answered and start the process of finding your new home.
