What to Ask a Mortgage Lender and Why?
Prepare yourself when evaluating lender options by knowing what to ask a mortgage lender, and how their answers should shape your decision on which lender is best for you.
Access the most important questions to ask a mortgage lender—the answers they provide will reveal if they’re a good fit for your home loan or refinance.
What are the Key Questions I Should Ask a Lender and Why?
Answer: Aside from the more obvious questions like “how much do I qualify for?” there is a series of crucial questions that you should be asking a lender. These questions will help to flush out possible hidden costs, or even out-right mortgage scams:
Are your loan officers licensed and experienced?
Your mortgage banker will be the most instrumental part of knowing exactly what your options are based on your personal qualifications and on underwriting guidelines. This may go without saying, but if you haven’t been through the mortgage process as a borrower at least once in your life, then how can you possibly guide others through it? And if you cannot obtain a license then you are probably not as capable as those who have one. If you hire a lawyer or doctor you want them to be licensed and experienced – this same standard should apply to your personal mortgage banker who you are entrusting with all of your personal financial information.
Do you have your own appraisal panel or do you subcontract your appraiser management out to a vendor?
Many of the complaints against lenders found online center around faulty appraisals. Some lenders contract their appraiser management to vendors known as AMCs (appraisal management companies). Consequently, the lender has very little oversight with their appraisers and this can lead to appraisals being completed by appraisers who are not local and/or to appraisers rendering faulty low values because they have little accountability. Remember that if your appraised value comes in artificially low you will either have to bring the amount of the shortage to closing OR your interest rate will likely go up (since your value is a factor of your interest rate).
Will you guarantee that I will close my home purchase on time?
Believe it or not the law allows lenders to change most of your closing cost at any time prior to your closing! Protect yourself by asking the lender for a written guaranty that your closing cost will not go up after you apply and before you close. This may not be easy to get from some of the larger institutional lenders but do not take “no” for an answer—OR choose another lender who will make this commitment to you.
Can I get a written rate lock agreement?
Again, it seems elementary but most lenders will not provide you with a written lock agreement unless you request one. Even then some lenders do not provide them at all. A written lock agreement will not only contain the locked rate and rate lock expiration date but should also state whether or not you are paying points for the lock rate. Clearly a document worth having!
Make an appointment with a mortgage expert.
Have questions? Want to learn more? Schedule an appointment for one of our banker to call you.
Why choose Homesite Mortgage for your refinance?
Our licensed mortgage bankers are trained to offer intelligent mortgage advice!
Our interest rates and closing costs are low so that you’ll save more money!
We may be able to waive the need for a home appraisal!
Our state-of-the-art technology is designed to save you time and keep your personal information safe!
Our mortgage process is quick and easy – you’ll typically close your loan in just 18-20 business days!
Our company culture is truly consumer-focused and we guarantee your mortgage experience will be better than any other!