1. Do you have a variety of loan programs to fit my cash flow and expected length of ownership needs?
If you are going to live in your new home for less than five years, you may want to consider a variable rate mortgage or “VRM.”
With a VRM, your payments will be lower, but they will go up according to the terms of the loan.
Did You Know?
Most people aren’t aware that with a 25-year mortgage they’ll be paying 2.5 times the total amount of the mortgage in payments.
If you are going to live in your new home for over five years, a traditional fixed-rate mortgage may be a better deal.
2. Do you offer written mortgage pre-approvals, not just pre-qualifications?
A “pre-qualification” is usually a lender’s opinion of your eligibility for a loan.
If you ask to be pre-approved, the lender will actually submit your job and credit history to an underwriter and get a conditional approval for a loan and a loan commitment.
The Strategic Advantage:
The advantage of having a pre-approval is that it will make your offer to buy a home stronger and it will usually allow you to close the deal faster.
3. Do you have the ability to handle difficult credit history?
Many lenders will only work with you if you have perfect credit, and if a problem comes up, they won’t help you.
Lenders look at your credit history to figure out how much they will lend you.
Lenders look at your credit history to figure out how much they will lend you and how much they will charge you to lend it.
Before you make an offer on a home, make sure your lender has reviewed and received approval for you and your specific credit history.
4. Is the rate that you quoted me the rate I will get at closing?
Many lenders advertise their rates in the paper and in homes magazines. These are what are called “Teaser Rates” in the industry. The name says it all.
Beware the “Bait and Switch”
After they’ve got you committed to using them, many lenders then tell you what the “real” rate will be. By this time, it’s too late for you to do anything about it.
Summary: The 4 Lender Questions
- ✅ Loan Variety: Do they fit your cash flow needs?
- ✅ Pre-Approval: Do they offer written commitment, not just an opinion?
- ✅ Credit History: Can they handle difficult situations?
- ✅ Real Rates: Is the quote the actual rate you will get at closing?
Knowing to ask these 4 simple questions will help make the mortgage approval process easier.
Want early access to serious buyers?
If you’re going to be moving in the next six months, what you might not realize is that there are a significant number of buyers searching for homes like yours.
In fact, for every buyer actively viewing homes right now, there are 5-10 more about to begin their search, or eagerly waiting for the perfect property to come up.
If you’re interested in getting a head start on finding a buyer for your home, leave us some details below… We’ll see if we can find a match!
Want to know what your home is worth?
Before you put your house on the market, you need to find out how much it’s worth in today’s market, so you can make your plans based on the most current information available.
We can prepare a detailed Pin-Point Price Analysis for you that shows the most current market activity in your area for homes like yours, and we can recommend an optimal marketing price range that will give you the best odds of selling quickly – and for top dollar!