More Questions to Ask About Your Home Loan
June 15, 2024
If you want to buy a house with an FHA mortgage, it pays to compare lenders to get the best rates and terms. You should also compare real estate agents and other service providers.
There are some good questions to ask when comparing no matter which services you are evaluating. We examine some of them below.
How Long Have You Been in the Industry?
The answer will vary depending on the service provider, but there is a common formula to consider. A more experienced lender or real estate agent can potentially navigate the more complex issues related to your home loan more efficiently.
However, someone new to the industry may be able to make up for a lack of experience with a newcomer's enthusiasm. A lack of experience may be offset with a more experienced mentor or trainer.
The newer employee may not know all the ins and outs of the business just yet, but the dedication and desire to grow in the field may be an advantage for a first-time homebuyer or experienced house hunter alike. Consider those with an obvious personal investment in their work.
Do You Have Experience With My Type of Transaction?
For example, if you want to build a house with an FHA One-Time Close construction loan instead of getting an existing home, you may use a lender with experience closing this more complicated loan option.
The same is true for a real estate agent. Do you want to buy a condo or duplex? Some other type of specialized property? An agent with experience closing your type of purchase will be an advantage.
How Well Do You Know the Area?
You might think this is a real estate agent-only question, but when you hire a home inspector, will they understand the unique issues that may apply to a given home?
A house in a known flood zone may require added scrutiny to crawlspaces and basements, and a home in a high-wind area may need additional consideration for the roof and its actual lifespan under those conditions.
That would compare to the manufacturer’s estimated lifetime, which may be arrived at without factoring in environmental conditions like being in a “tornado alley” or something similar as a local or regional issue.
Can You Recommend Other Service Providers?
Sometimes, you may wish to get a reference from one type of provider for a real-estate-related service. Does the real estate agent know any good home inspectors? Who do they recommend?
This is an important question because local reputation is typically an important factor in choosing. The company known for reliable service gets talked about in the local industry, as does the company known for doing shoddy work.
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RELATED VIDEOS:
Home Equity Can Secure Your Second Mortgage
Consider the Advantages of Discount Points
FHA Limits are Calculated and Updated Annually
There are some good questions to ask when comparing no matter which services you are evaluating. We examine some of them below.
How Long Have You Been in the Industry?
The answer will vary depending on the service provider, but there is a common formula to consider. A more experienced lender or real estate agent can potentially navigate the more complex issues related to your home loan more efficiently.
However, someone new to the industry may be able to make up for a lack of experience with a newcomer's enthusiasm. A lack of experience may be offset with a more experienced mentor or trainer.
The newer employee may not know all the ins and outs of the business just yet, but the dedication and desire to grow in the field may be an advantage for a first-time homebuyer or experienced house hunter alike. Consider those with an obvious personal investment in their work.
Do You Have Experience With My Type of Transaction?
For example, if you want to build a house with an FHA One-Time Close construction loan instead of getting an existing home, you may use a lender with experience closing this more complicated loan option.
The same is true for a real estate agent. Do you want to buy a condo or duplex? Some other type of specialized property? An agent with experience closing your type of purchase will be an advantage.
How Well Do You Know the Area?
You might think this is a real estate agent-only question, but when you hire a home inspector, will they understand the unique issues that may apply to a given home?
A house in a known flood zone may require added scrutiny to crawlspaces and basements, and a home in a high-wind area may need additional consideration for the roof and its actual lifespan under those conditions.
That would compare to the manufacturer’s estimated lifetime, which may be arrived at without factoring in environmental conditions like being in a “tornado alley” or something similar as a local or regional issue.
Can You Recommend Other Service Providers?
Sometimes, you may wish to get a reference from one type of provider for a real-estate-related service. Does the real estate agent know any good home inspectors? Who do they recommend?
This is an important question because local reputation is typically an important factor in choosing. The company known for reliable service gets talked about in the local industry, as does the company known for doing shoddy work.
------------------------------
RELATED VIDEOS:
Home Equity Can Secure Your Second Mortgage
Consider the Advantages of Discount Points
FHA Limits are Calculated and Updated Annually
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