What You Should Ask Your Lender When Buying a Home

When it comes to buying a home, there's more to it than just browsing listings. The first step is securing the right financing because, without it, your dream home might stay just out of reach.

Keep in mind that lenders have their own set of requirements when it comes to home purchases, but don't worry my team and I are here to help you with that! Knowing the right questions to ask them is crucial, and we've got your back.

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How Much do I Need for a Down Payment?

Your down payment depends on the loan program you choose.

• VA loans don’t require a down payment
• FHA loans require 3.5% down.
• Conventional loans require 5% down in most cases (3% if you are a first-time homebuyer), and

For FHA and Conventional loans, if you put down less than 20%, you will have to pay Private Mortgage Insurance.

Once you apply my team and I will go over your down payment options and how much you should put down to get the best rate and terms on your loan.

?What’s the Best Interest Rate I can Get?

Interest rates are much higher this year than last, but that shouldn't deter you from buying your dream home.

Once you apply we look at your qualifying factors and tell you what you can improve to ensure you get a lower rate. You can also ask about the possibility of buying the rate down to lower the interest rate to keep it even lower.

When Should I Lock My Interest Rate?

Interest rates are always fluctuating. We cannot lock down a rate until your offer on a home gets accepted and you go into escrow. Most rate locks are free for 30 days, but if you must lock it for longer, it might cost you.

How Much are Closing Costs?

You’ll need more than just the down payment to close on your loan. Most lenders charge 3% – 5% of the loan amount in closing costs.

Some loans allow you to wrap some closing costs into it if you don’t have the funds upfront. If you’re worried about affording the closing costs, talk to your lender about your options.

?Knowing what to ask lenders before you buy a home is important. Mortgage financing is one of the most important aspects of buying a home. Without a mortgage, you’d need cash to buy a home, and most people don’t have enough cash for a purchase of that size.