Lender Interview Guidelines

In Buyers by Doug Phelps

When it comes to buying a home, besides a qualified real estate agent by your side you need a qualified mortgage professional too. Unless you are paying cash, of course!

It is essential you select a competent and reliable mortgage lender who will work meticulously with you all the way through to closing. Local lenders are typically best able to do this but some national lenders work just fine. 

Perhaps you are wondering:

  • Is a VA, FHA, Conventional, or Reverse loan best for your situation?
  • Should you get a fixed-rate or adjustable-rate mortgage?
  • Is a 30-year or 15-year or another term the best fit for your goals and budget?

Finding The Right Lender and Loan For You

Call a lender (two or more) to learn answers to these questions. Interview them to see what they have to offer you. If you are able, have an idea of your credit score and your anticipated funds for a down payment.

Here are some lender questions you can ask.

  • What kind of loans do you offer?
  • What are your specific lender costs and fees?
  • How much time do you need to complete a loan and close?
  • Do you understand a Colorado real estate contract, and the importance of deadlines?
  • What is your availability and how do you communicate?

Feeling comfortable with the answers? Dig in a little bit more with some loan-specific questions. The lender will probably need to do an initial application, run your credit scores, and ask you a few questions to answer them fully, but explore these as much as possible.

Here are some loan specific questions you can ask.

  • What kind of loan would you recommend for me?
  • What are the advantages and disadvantages of this loan program?
  • What are the qualifying guidelines for this loan?
  • What is the current interest rate?
  • Are there discount points and origination fees for this rate?
  • What is the necessary down payment for this loan?
  • Will private mortgage insurance be required?
  • Are there other costs for the loan?
  • If the interest rate is adjustable, how will it and the loan payment vary?

Final Thoughts

There is a lot here. It is important. Not sure which lender you want to use? You can do more than one initial application without negatively impacting your credit scores. 

Your lender selection is critical and the wrong decision could cost you extra money, headaches, and hassles. The mortgage professionals I work with are passionate about educating clients on the pros and cons of every loan option. Contact me for referrals.

Remember, in order to have the best experience, a quoted interest rate should not be your only consideration. You want to feel good and have confidence in your mortgage loan partner.