Are you in the process of working with a loan officer? Here are a few questions you can ask to learn more about their process, what they recommend and how your mortgage looks.

Loan Officer Question #1: What Type of Loan is Best for Me?

There isn’t just one type of mortgage.

There are a variety of loans for a variety of different situations. While you can do your own research and come to your own conclusion, it’s good to get advice from an expert.

How Much am I Pre-Qualified or Pre-Approved for?

When a lender pre-qualifies you, they’re making a few estimates based on the information you provide them. They’re trying to get an idea of what kind of mortgage to offer you and how the numbers would look.

Keep in mind that this is different from a pre-approval. In a pre-approval, the lender pulls your credit score and will start asking you for information such as your W-2 and bank statements.

This is done for two main reasons:

Both your pre-qualification and pre-approval can be helpful to know depending on your stage of the home buying process.

What is My Interest Rate?

Your interest rate will depend on several things:

In general, your interest rate is dependent on the lender’s confidence in your ability to repay the loan on time. If you seem like a low risk, you’ll get a lower rate.

The good news is interest rates are extremely low right now!

What is My Monthly Payment?

Sometimes a new homebuyer is surprised when they see how much they’ll have to pay each month. Maybe they had used an online calculator to estimate their mortgage but hadn’t accounted for other costs. These things add up:

The sooner your lender gives you this information, the better. It will help you understand how much you can realistically afford and should budget for your home.

What is Your Loan Processing Time?

You want a lender who can close within 30 days or less. Most home sellers are eager to get out of their house, so they want a buyer who can close within a month of the offer.

That’s why it’s important to get pre-approved. The faster you get some information to your lender, the faster they can process your loan once the seller has accepted your offer.

Conclusion

Make sure to ask your loan officer a lot of questions. Their job is to make sure you get the best loan for you! To prove that we go above and beyond to help our customers get a great deal on their mortgage, send us an email at john@plghomeloans.com. We’ll talk to you soon!

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