The Best Questions to Ask Your Loan Advisor
You’re ready to purchase a home and sit down with a loan advisor to learn more about the loan process, requirements and what programs you are eligible for.
Before you sit down and listen to a whole lot of information, you should take some time to gather questions that you have.
A little bit of preparation before meeting with your loan advisor will allow you to get as much relevant information as possible.
- What documents do you need to gather to be pre-approved for a loan? The list could include things like W2s, pay stubs, retirement account statements and bank statements. Every loan has different requirements, so it’s best to know what they are in advance.
- Do you qualify for any government loans or programs? With so many programs and loan options available, you could qualify for multiple programs depending on your situation?
- What will the interest rate be? What direction are interest rates headed in? Should you move quickly or wait? It’s important to understand what rates are now, what rate you will be getting and whether or not it’s best to lock in your interest rate now or see what the future holds. Your loan advisor works with interest rates and trends all day and can offer you invaluable advice.
- What down payment will be required for a loan? The amount of money you should have saved for a down payment will radically vary based on the loan program that you will be using and what programs and loans you qualify for. Some programs require 0% down, while others require 20% down. There are also programs that can help you in securing your down payment.
- What will the monthly mortgage payment look like? When budgeting for your new property, it’s important to know how much monthly mortgage payments will be and what the breakdown of the payments will be.
- What fees will you need to pay? Many fees are bundled into closing costs including appraisal fees and inspection costs.
Are there prepayment penalties with your loan? This is an important question to ask your loan advisor, as some programs have a penalty for paying off a loan ahead of time. It’s always best to ask now instead of being surprised in the future.
Partner with Equity Mortgage for an Experienced Loan Advisor
I am experienced in getting homeowners the best possible mortgage product for their situation. Since every client is in a different situation, I encourage you to get in touch and learn how I can help. Contact me today by calling 443-471-4310. I look forward to hearing from you!