3 Questions You Need to Ask a Lender via @homebidz

3 Questions You Need to Ask a Lender

Something that is equally important as searching for a home, is searching for a mortgage. When you come across so many different lenders, you need to know what you should ask each lender and what a typical answer should be.

1. What are the Mortgage Guidelines?

Since every lender will be different with their qualifications for a home loan, your first question should be to ask about the guidelines. Every lender will have a different set of guidelines that they will follow to approve or reject a loan application. This is an important first question because you can easily see if you will even have a chance at being qualified before going any further.

2. What Size Down Payment Should I Expect to Pay?

After your qualification question has been answered, it is time to know what type of down payment they are expecting. Once again, each lender carries a different answer for this. It can range anywhere from 3% to 20% or more. It will all depend on factors such as the lender, type of home loan, and type of housing. You should keep in mind that, even if you want to put down a large down payment, you should be cautious about it. Putting too much money towards the down payment can take money away from other expenses you may need later on.

3. Which Documents Will I Need to Show for Pre-Approval?

One more, very important, question for each lender will be to ask about the documentation that you will need. Some lenders will require more documents than others. Know that some of these documents may not be necessary for every application so know which lender is going to benefit you the most.

Conclusion

If you are pretty sure you are ready to buy a home, it's easy to jump into an application. Make sure you're prepared by asking the questions above. You'll be glad when you don't get points knocked off your credit score just months before you could actually qualify.

Latest Posts

How The Rent-To-Own Home Process Works

Rent-to-own homes are considered an alternative for individuals who may not have the best credit score or the right amount of cash for a down payment. The basic outline of a rent-to-own contract is that the buyer would...

4 Types of Home Loans You Can Choose

There are four main types of homes loans that you can choose when it comes to the home buying process. Fixed-rate mortgage, adjustable-rate mortgage, VA, and FHA loans are types of home loans that you can choose, but...
What You Need To Know About Closing via @homebidz

This is What to Look Forward to When Closing

What To Expect The Day Before ClosingClosing on a home can sometimes be the most stressful point for many home buyers. This is because there is so much involved in this step and a number of documents and fees that must...
These Are Important Financial Basics for Every Buyer via @homebidz

These Are Important Financial Basics for Every Buyer

Home Buying Financial Basics To Get You StartedIn the home buying process, there are a lot of terms and items that you need to understand. Many of those fall under the financial category. It is a good idea to...
Did You Know About these Types of Mortgages? via @homebidz

Did You Know About these Types of Mortgages?

Types of Mortgages You May Not Know About YetIf you are searching for a home loan, then you probably already know that there are quite a number of types of mortgages to be found. However, there may be even more than you...

Categories