Your first conversation with a loan officer sets the tone for your entire home purchase. It is your chance to understand your options, uncover costs and decide whether this is the right person to guide you. Going in with a list of questions helps you get clear answers and make confident decisions. Here are the essentials.
There is a wide range of mortgages available, including conventional, FHA, VA, USDA and jumbo loans, each with fixed or adjustable rate options. Ask your loan officer to explain which ones you may qualify for and the pros and cons of each for your situation. For example, eligible veterans may be able to buy with $0 down on a VA loan with full entitlement, while an FHA loan allows 3.5% down with a credit score of 580 or higher. You can also preview the differences on our loan comparison page.
Your down payment affects your loan amount, monthly payment, whether you pay mortgage insurance and sometimes your rate. Ask to see a few scenarios side by side. On a conventional loan, eligible buyers may put down as little as 3%, and private mortgage insurance can be removed once you reach 80% loan-to-value. Ask whether any down payment assistance might be available to you, too.
The interest rate determines your monthly principal and interest payment. The annual percentage rate, or APR, includes the interest rate plus certain fees, so it gives a fuller picture of the cost of borrowing. Ask about discount points, how long a rate lock lasts and what happens if your closing is delayed.
Closing costs can include lender fees, the appraisal, title insurance, recording fees and prepaid items such as property taxes and homeowners insurance. Ask for an estimate early and find out how much cash you will need in total at closing. Also ask whether seller credits could help cover some of those costs. Your Loan Estimate will lay all of this out in a standard format.
Make sure the payment you discuss includes taxes, insurance, mortgage insurance and any association dues, not just principal and interest. That total is what will actually leave your account each month.
If you make offers at different prices, it helps to have a letter that matches each one. Ask how quickly your loan officer can update it, especially on evenings and weekends when many offers are written.
Most lenders ask for pay stubs, W-2s or tax returns, bank statements, identification and details about any debts. Self-employed borrowers may need more. Knowing the list ahead of time lets you gather everything and avoid delays.
Ask how long loans usually take to close, how often you will get updates and who to contact if your loan officer is unavailable. Responsiveness matters most during the final days before closing.
A good loan officer will remind you to avoid new debt, large unexplained deposits and job changes until after closing.
Do not stop at this list. Ask about anything specific to your situation, such as variable income, a past credit event or buying a home that needs work. There are no bad questions. Meet our loan officers and bring your list to a conversation with FLO Mortgage.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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