6 Questions You Might be Afraid to Ask About Getting a Home Loan – Answered
You have a lot more control than you might think over your loan application process and outcome. The first key is working with someone who is trained, certified, and dedicated to helping you achieve your dreams for your home and your life. The second key is not being afraid to ask the right questions.
1. What special financing might I qualify for?
Your loan officer should be looking at your unique situation for opportunities to see if you qualify for special programs such as Federal Housing Authority (FHA) or Veterans Affairs (VA) loans. They should also be able to walk you through the differences and benefits of Fixed-Rate Mortgages (FRMs), Adjustable-Rate Mortgages (ARMs), Interest-only mortgages and reverse mortgages. If you are in the market for a high end dream home a “Jumbo Loan” might be the right solution.
2. Which of these financing options is the right one for me?
There are many variables for your personal loan officer to take into account before they answer this question. Even after your loan officer has made a recommendation only YOU can decide the best solution for you. Your employment, income, assets, credit, debt, expenses, down payment and other information about your finances will be just the beginning. You should also talk with your loan officer about your plans and dreams for the future. Will you be staying in traditional employment, or are you considering entrepreneurship or retirement in the near future? Do you have assets maturing or are you considering changing your investment strategy? Anything that will impact your financial picture should be addressed before choosing a mortgage.
3. How do I know the total cost of my mortgage?
Our licensed loan officers will explain the costs involved once we have a full picture of your objectives and determine which loan program best fits your unique situation. 3 days after application you will receive a Loan Estimate which will break down the origination and third party costs involved. You will also receive a closing disclosure prior to closing that will outline all of the final costs should anything adjust during the processing of our loan. Most importantly, keep the lines of communication open with your loan officer; our people are here to make sure you feel confident and comfortable with all the details of your mortgage.
4. What documents do I need to provide?
Proof of income and assets, personal identification and information about your credit history are the big three. We included an article here that will give you a more detailed list – read “13 Documents Mortgage Lenders Need From Homebuyers.”
5. How long will it take to process my loan application?
At most lending institutions, the answer depends on how quickly you provide the information they need, the mortgage lender’s workload and the demand for inspectors, appraisers and other professionals involved. In general, it can be a few weeks to a couple of months. At Vinson Mortgage, if you’re providing what we need and everything is in order, we can close your loan in as little as eight days. That’s because we have licensed loan officers who do nothing but work with clients to get loans closed, and we offer in-house underwriting so we aren’t at the mercy of an outside investor’s schedule.
6. How can I speed up the process?
Provide all of the required documentation up-front. Work closely with your personal loan officer. We’re here to help, so even if you’re dreading some bad news about your credit or missing information, stay in touch. We’re here to turn bad news around so the more information you give us, and the more accessible you are for calls and emails, the faster we can help you make that happen.
Ultimately the more questions you ask the better your outcome, so if you have questions we’re here to get you the answers. Call us today or start the process with a simple online application.