October 7, 2020
Finding the right home for you and/or your family can be quite challenging, but an experienced mortgage lender having your back will make a big difference. In order to assist you in getting the most out of your chosen mortgage lender, here are 5 questions you should ask your lender when buying a house in Loveland, Fort Collins, Longmont, Windsor, Greeley, Timnath, Johnstown, or other NOCO community.
1. DO I QUALIFY FOR ANY PROGRAMS?
Ask your lender is if you qualify for any special rebates or programs that will reduce the financial burden when buying your home.
Military veterans qualifying for a VA loan through the Department of Veterans Affairs can purchase a home with no down payment and no need to pay monthly into Private Mortgage Insurance. First-time homebuyers that qualify for an FHA loan through the Federal Housing Authority can oftentimes purchase a home with reduced down payment and closing costs. Buying in one of the many Northern Colorado rural areas with a USDA loan will allow you to borrow with no down payment!
Give your lender the details of your current situation and see how they can make them work for you.
2. WHAT ARE THE RATES?
If you apply with a lender online, you should be able to find a section that details their current interest rates and Annual Percentage Rate, or APR.
Take this up-to-date information with you to any meetings with your lender and discuss any possibility of locking in your interest rate. Regarding locking in your interest rate, make sure you find out when this can be done, and for how long the “lock” will be in play before expiring.
Some lenders will only allow you to lock in an interest rate prior to closing for a certain amount of time, so keep this in mind when trying to lock in your interest rate relative to your closing.
3. HOW WILL YOU STAY IN CONTACT WITH ME?
Much like every other portion of a real estate transaction, communication is key.
You want to a lender on your team that is an outstanding communicator! Be sure they commit to ensuring that their communication to you is timely, consistent, and crystal clear. Find out with whom you will be communicating throughout the buying process, especially when you have questions that need attention.
Can you expect to always hear from one particular individual, or will there be a team with whom you may discuss details? You want to leave your lender knowing exactly who to reach out to during the process.
4. HOW MUCH WILL THIS COST ME?
Any person buying a house has money on their mind at all times.
Being upfront with you about the expected loan costs will help in making this real estate transaction a success. Just know this – in most cases, there will be application fees, loan origination, processing fees and more.
Once you have been pre-approved, you’ll meet with your leender and get the details of additional expenses, like inspection, appraisal, closing costs, etc. These costs add up quickly, so be sure your lender helps you understand on the front end, what all the costs will be.
5. WHAT IS A REALISTIC TIMEFRAME FOR CLOSING?
Finally, planning for how and when will move is one of the most exciting parts of buying a home.
You don’t want to be moved in without electricity or gas, so be aware of utility start and stop dates to arrange. There could be some delays due to inspections, appraisals, and underwriting, so bee sure your lender is “on it,” monitoring and managing the process for you from the lending side of the equation.
Guidance on Questions to Ask Your Lender in Northern Colorado
At C3 Real Estate Solutions, we have amazing lenders, in-house, who are happy to answer questions for you at no cost or obligation. Whether first-time home buyer or seasoned homeowner, they can help provide the direction you need to make well-informed borrowing decisions. We have numerous lenders in the community who are outstanding as well and are ready, willing, and able to serve you!
