As a mortgage lender, you will have to answer many of the same questions with every new client, especially when they are first-time homebuyers.
However, for lenders who haven’t had the experience of going through the mortgage process with first-timers (or, for those who haven’t been there in a while), here are five popular questions to expect from your client:
- “What type of loans do I qualify for?”
Odds are your first-time homebuyer has taken to the World Wide Web long before official becoming your client. However, they need your help specifically to let them know what type of loans fit their situation and their needs.
- “What do I need to apply for a loan?”
It’s important to let your client know every piece of information you’ll need for a mortgage application. Ensuring they are aware of what to provide can not only speed up the application process, but allow it to be gone through smoothly.
- “What is the difference between a fixed-rate and adjustable rate mortgage?”
This and many more questions surrounding rates, interest, amortization and other financial terms will most likely be asked by your first-timer. Even with the individual research they may have conducted, clients can easily get lost in mortgage industry jargon and end up more confused than they had been at the beginning. (ARM to you is definitely not the same arm to your client.) You’re here to not only get them the best rate possible, but to explain what that all means.
- “What shouldn’t I do before my loan closes?”
Informing your client of any activity that could jeopardize their mortgage loan application is extremely important. It may not be well-known to the general public that large purchases or taking out additional loans during a mortgage loan application process can effect it—even if your client skips over this question, it’s your job to let them know.
- “What can I expect at closing?”
After all is said and done, your homebuyer will be curious as to what the end looks like. Now is the time to fill them in on what closing costs entail, who would most likely be in the closing room, and what exactly would be happening. That way, on the day of, nothing will come as a surprise.
First-time homebuyers can often be the most curious of borrowers. They should be! They’ve never been through the process of applying for a loan or purchasing their own home. It is your job as a mortgage lender to not only guide your client during this time, but to do so gently and honestly. Connecting with your client and letting them learn is a great way to ensure they enjoy their home buying experience.