14 Questions to Ask Your Loan Officer During Your Preapproval Process
Loan pre-approval is one of the first important steps of your home purchase process.
Important Questions to Ask During Your Mortgage Preapproval Process:
1. What is the maximum purchase price I can qualify for?
2. What will my monthly housing payment be at that price? Does that include property taxes, insurance, HOA fees, and/or Mello Roos taxes (what's the breakdown)?
3. How much should I be prepared to pay in total closing costs for this transaction? Do those numbers change drastically if I close early vs. late in a given month and/or if I close now vs. a few months from now?
4. How do my options change if I put more money down or less money down? Does my interest rate change? How do my monthly payments change?
5. I don't want to spend the maximum, so what purchase price do I need to stay under to keep my monthly housing payment less than $____/month?
6. When can I LOCK my interest rate with you, and HOW MUCH does your company charge for me to obtain this loan?
7. Is my loan a slam dunk, or are there some potential hurdles/barriers that you envision with my loan scenario? What could delay my approval when I have a property under contract? What can I be working on or preparing for now to make this go more smoothly?
8. Are there any specialty programs that I might qualify for? What are the pros and cons of getting a 30-year fixed rate loan vs a 10/1, 7/1, 5/1 ARM, etc.?
9. Can I get part of my down payment from a family member or friend (and how does that work)?
10. Is this a 30-year fixed rate loan (vs. a 15 year fixed, ARM, etc.)? Is there a pre-payment penalty if I pay off the loan early?
11. Could you please give me breakdowns of my total monthly housing payment AND my estimated closing costs for a few difference scenarios (if I buy at this price with this much down, vs. another price with another amount down, etc.)?
12. Do you have any personal recommendations for me based on my income/assets/etc.?
13. Could you please supply me with a pre-approval letter after I fill out the application and send you all the supporting documents? When I write an offer on a property, are you available to send me an updated pre-approval letter (even if it's on the weekend)?
14. I realize that rates change multiple times/day and that you will have different rates on different days. I'd like to get a competitive rate with fair fees, and ideally work with a proactive loan officer like you. My plan is to get in touch with you again once I have a property under contract to find out your rate and see if I'm ready to lock. How does that sound to you?
Learning Everything You Can About Your Loan Options
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.