Top 7 Questions to Ask Your Loan Advisor

You’ve finally taken the plunge and are ready to buy a home. You even have a meeting set up to meet with a loan advisor to start discussing the process and see what loan program you might qualify for. We want to help prepare you for that meeting so you can leave with the most information and knowledge possible.

Loan advisors are experts in their industry and should be able to provide you with a wealth of knowledge. Here are the top seven questions to ask your loan advisor.


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1. What documents will I need?

There will be several documents that you will need to gather and organize in order to get pre-approved for a loan. This can include W2s, pay stubs, bank account  and retirement statements, and more. Each loan program’s requirements can be different, so ask your advisor for a list so you can gather the necessary paperwork.


2. Are there any specialty programs or government loans that I qualify for?

There are several loan options available and you may qualify for multiple different programs, depending on your circumstances. Additionally, many companies offer specialty programs that can serve different unique individual needs. Your loan advisor will be able to show you the different programs that you qualify for and explain the benefits of each program.


3. What is the interest rate, what are the rates expected to do, and should I lock now?

You’ll be paying interest on a mortgage for the length of the loan, so it’s important to know what rate you are getting. Mortgage experts can help you determine the loan program that fits your unique circumstances, when to lock an interest rate, and advise you on the pros and cons of a fixed rate or adjustable rate.  Our SecureLock is one of our specialty programs that allows buyers to lock in today’s rates while they look for a home, sell their home, or while a home is under construction.


4. What is the minimum down payment required for the loan?

How much money you will need for your down payment will vary depending on the type of loan program you choose and that you qualify for. We have a multitude of loan programs to consider, which can range from zero down to 20% down. There are also down payment assistance programs, opportunities to use gift funds, and other specialty loan programs that can help you with your down payment. After you have found a property, our loan advisors can help you determine what your down payment can be.


5. What will my monthly mortgage payment be?

As you budget for your new home, you’ll want to know how much your monthly payments will be as well as the breakdown of those payments. Monthly payments typically include principal, interest, taxes, and private mortgage insurance.


6. What fees will I be responsible for paying?

Some fees, such as appraisal and inspection, are included in the closing costs. You can also choose to buy discount points in order to decrease your interest rate. Additionally, some lenders may charge fees for their services. Find out this information upfront.


7. Are there any prepayment penalties with this loan?

If you make additional payments toward your principal, you will end up paying the loan off early. Sometimes, though not often, there could be prepayment penalties associated with paying off the loan early. Just make sure to ask about this before getting locked in.

Your loan advisor should be able to answer all of these questions and more. Use them as a resource since they are the expert in their field. It is okay to ask a lot of questions. Purchasing a home is a big deal and you should feel confident in your knowledge of the process.