Questions I Would Ask My Loan Officer

January 19th, 2012 | Home Loan Information

Today, I decided to write about questions.  Questions I would ask my loan officer.  Questions I should have asked my loan officer but either didn't know or was to embarrassed to ask.  Ask and ask again.  While a mortgage loan officer will ask you quite a few questions in order to obtain information for a home loan, there are critical questions you should ask the loan officer as well.  Doing your research, asking the questions, and taking the time to understand the mortgage loan you are being offered will result in a smoother transaction.  Here are just a few questions I would ask my loan officer:

Are you licensed as a mortgage loan officer?

New laws require all mortgage loan officers to pass background checks and maintain licensing with the National Mortgage Licensing System and the Department of Real Estate.   

When are you available?

Can I call you anytime or only during "normal working hours". 

How long will it take you to pre-qualify me?

How long does it take for the loan officer to pre-qualify the client and issue a loan status report? 

What is the estimated time-line to close my loan?

Loans are often closed within 30 - 45 days of escrow being opened.  Missing paperwork, application mistakes, appraisal scheduling and underwriting issues can result in delays.

What is the rate and terms of my loan?

Each loan is unique.  Fixed rate, adjustable rate and interest only are just a few of the many loan products out there.  Be absolutely sure you know the type of loan along with other important things such as balloon payments, pre-payment penalties, etc.

What will my closing costs be?

Closing costs very and can be handled in several ways.  Ensure your loan officer is capable of explaining all closing costs to you.  If you don't understand, keep asking.

Which type of loan is the best?

Your loan officer should ask you several questions before offering advice or suggesting a home loan that’s right for you.  Be cautious if they continue to push a certain type of loan when it just doesn't make sense.

Can you explain the Good Faith Estimate?

This form can look complicated.  A lot of numbers and they all have a dollar sign!

These questions were pretty basic but needed.  I think I will dig a little deeper on my next blog.  I think I'll provide some questions you can ask that some loan officers, direct lenders and banks don't want to answer!  It should be pretty good!

Have a great day!
Rich Conley - MLO