First Things First
Before Your First Home Tour
Starting a search to purchase a new home is an exciting time! Before you schedule your first home tour, make sure to determine if you will need a loan. If so, set up meetings with a few lenders and get pre-qualified for a mortgage.
It's important to ask potential lenders questions to make sure they are a good fit for you, such as:
- What type of loan do you recommend for me, and why? One type of mortgage loan isn't superior to another — but whichever you choose, you need to know why it's best and how it works.
- Will my down payment vary based on the loan I choose? If you're tight on cash or don't want to be cash poor, let your lender know. Loans vary in their down payment requirements.
- What is the interest rate and the annual percentage rate (APR)? Everyone talks about the interest rate, but the APR is just as important — it combines the interest rate with the fees a lender charges to originate your loan.
- Can I lock in an interest rate? If so, for how long? If you think rates will be moving up, ask if you can lock it in for a set period of time.
- What will my closing costs be? Are they part of my loan, or will I pay them in cash at closing? Closing costs usually run 3–6% of your loan value, so you need to know how they'll be covered.
If you're planning to get a loan, I'm happy to advise you or connect you with reliable local lenders. Remember — I'm here to guide you through the purchase process from start to finish.
