Glenda Feeken - Come Live and Play on the Kenai

Question #1: Do you have a variety of programs to fit my budget and other needs?

Everyone has a different cash flow situation and expected length of ownership. Your lender should be able to offer you a program that fits your specific needs. Do you expect to stay in the house for just a couple of years? Or will you be keeping the house until the mortgage is paid off?Look for a flexible full service lender who has relationships throughout the mortgage industry, and who offers many programs for a variety of homebuyers.

Question #2: Can I get pre-approved for a loan?

Being pre-approved for a loan gives you some clout with the seller. Now, when you make an offer, the seller knows he or she wont have to wait for you to go through the loan approval process, only to be turned down for some reason. You have removed the uncertainty for yourself and for the seller. You also know in advance what price range you can afford in a home. This saves you from finding the perfect house and spending days drafting the offer and negotiating the counter offer, only to find that you cant get a loan for the amount needed. A lender who guarantees that you are pre-approved for a loan can offer you peace of mind and a better negotiating position.

Question #3: Can you handle a less-than-perfect credit history?

If you have had credit difficulties in the past, look for a lender that is willing to work with you. A full service lender should have access to many different sources, and should be able to handle difficult cases. The lender should care about helping you get the loan, and assist you with your credit difficulties.

Question #4: How often will I hear from you?

Going through the loan process can be nerve-wracking when youre waiting to hear from the lender. You start to wonder if everything is going smoothly, where the paperwork is, and whether you filled everything out properly. And then you ask yourself, Are they waiting for me to do something else?Chances are, the loan process is proceeding normally, but its nice to be kept informed. Your lender should call you at least once a week during the loan process to let you know the status of your loan. Then he or she should call you more often, perhaps every day, during the week before closing.Finally, your lender should be committed to returning your phone calls quicklyusually the same day. Thats the service youre paying for.

Question #5: Do you draw up your own loan documents?

Many loan brokers dont do this in-house. Yet, production of the loan documents is the final hurdle the mortgage company must overcome. When you and the seller sit down at the settlement table, there are a lot of papers to sign, and its vital to have the loan documents ready and in order. The only way the lender can guarantee this is if he has control over the loan documents. By producing these documents in-house your lender can offer you higher quality service.

Question #6: Will you attend the closing?

A full service lender will see you through right to the end, and will be willing to answer your loan questions at closing. Not all loan officers will be committed enough to do this. In addition, your lender should have the loan documents finished and at the settlement office one or two days in advance. This will help alleviate some of the last-minute apprehensions you and your real estate professional might have. It will also let you know exactly how much money you need to bring to the settlement, saving you the inconvenience of having to rush to the bank at the last minute.

Question #7: What is the most important part of the loan application process?

The obvious answer to this is: An approved mortgage. Thats what all the paperwork, all the questions, and all the waiting are for. Your lender should have this goal clearly in mind.