Greetings Neighbors,

Have you or someone you know made that important decision to buy a home? Have you been to the 7-10 different properties and finally decided on which one would suit you now and in the future as discussed in the post Buying Your First Home, Take Time and Cover All the Bases?

Well, if you've answered yes to both of those questions here are seven important questions you need to ask before sitting down at the settlement table and signing your name on the line.

Question 1: Do You Have a Variety of Programs to Fit My Budget and Other Needs?

Because the length of ownership as well as personal finances/income various from person to person it is important for your lender to have the ability to offer you the right program that fits your needs. Factors such as the length of time you are planning to stay in the home or will you stay in your home until the mortgage is paid are key in finding the right program for you. Make sure to search for lenders who have established relationships throughout the industry as well as offer different programs.

Question 2: Can I Get Pre-qualified For a Loan?

You can score major points with the seller if you’re pre-approved for a loan. With this important task out of the way, the seller will be at ease in knowing he or she doesn’t have to wait for you to complete this process. In addition, being pre-qualified will give you the knowledge of knowing what price range you are able to afford.

Question 3: Can You Handle a Less Than-Perfect Credit History?

Everyone doesn’t have A-1 credit and having not–so-perfect credit shouldn’t keep a person from purchasing a home. If you or someone you know have had difficulties in the past with credit, find a full service lender that is willing to work with you. Full service lenders typically have access to a variety of sources and the ability to handle difficult situations.

Question 4: How Often Will I Hear From You?

To most people not being informed on a major transaction such as buying a home can be somewhat nerving. It’s important to make sure your lender will keep you abreast during the buying process. Most likely the process is moving along smoothly but it’s always good to actually know and not be in the dark.

Question 5: Do You Draw Up Your Own Loan Documents?

Loan brokers typically do not do this in house. However, since the preparation of the loan documents is the final speed bump for the mortgage company to conquer, it would be detrimental for these documents to not be prepared. The only sure way for these documents to be prepared at the signing is for the lender to have control over them. Finding a lender with the ability to produce in-house loan documents will provide you with a higher quality of service.

Question 6: Will You Attend the Closing?

If you choose a full service lender you can count on them being there throughout your entire home buying process, not all loan officers will commit to this. Also, it is important for your lender to have all documents completed and on the table a few days in advance so you will know exactly what to bring to the settlement table.

Question 7: What is the Most Important Part of the Loan Application Process?

Of course the most important part is being approved for the mortgage of the home you’re looking to buy and your lender should always have this concept in mind.