Get Preapproved for a loan!
Hey there. If home ownership is at the top of this upcoming years to do’s. Getting preapproved is one of the first and most important steps while prospective lenders will have plenty of questions for you. Don’t be afraid to find the right lender and loan but ask in host of questions all on your own. So Get preapproved for that loan and move on to the next steps for the homeowner challenge!
Hi I’m Paula Quinn your local realtor with RE/MAX Central and today I’m gonna give you a list of questions that you can carry with you when you meet prospective lenders. You can be confident that your getting the lender, the loan, and the payment that you can live with. If you got all of those financial docs of information together, here are a few questions to get you started.
What type of loan do you recommend for me? And why? There’s no one type of mortgage loan that’s necessarily superior to another but, which ever you choose you need to know why its best and how it works best for you. Will my down payment vary based on the loan I choose? If you’re tight on cash or you don’t wanna be cash poor let your lender and realtor know. Different loans vary in there down payment requirements.
What is the interest rate and the annual percentage rate APR everyone talks about? The interest rate is important, but the APR is just as important. It combines the interest rate with the fees a lender charges to originate your loan. Can I lock in a interest rate? If so, how long? If you think rates will be moving up ask if you can lock it in for set period of time. Also, ask if the rate drops if you can change it into the lower interest rate before you close.
What will my closing costs be? Are they part of my loan? Or will I pay them in cash at closing? Remember closing cost usually around 3-6% of your loan value so you’ll need to know how they’re going to be covered this is also something we can discuss and write into purchase agreement but there are downsides to that as well especially in this market.
I’ll explain all of those.
Don’t understand something your lender says? Stop and ask for clarification. This is your home buying journey and you deserve to understand the process every step of the way. Keep in mind that since the pre-approval is only valid for 30 to 90 days depending on the lender. You’ll want to wait to meet with lenders until you’re ready to seriously search for a home.
Thinking about taking this first step into home ownership? Give me call I would love to cheer you on! If buying your first home is one of this years goals, join me on my 90 day to homeowner challenge. It starts whenever you hop in so click the link below and we’ll send you a bunch of information. I’m Paula Quinn your local realtor with locally owned RE/MAX Central and remember, I want you to love where you live.