Searching for a lender is one of the more intimidating parts of buying a house for many first-time homebuyers. At first glance, it might look like the lender has all of the power in this situation. After all, you need money to buy a home, and the mortgage company gets to decide whether or not to offer you a loan. The truth is, however, that this relationship is more complicated than it seems.

Lenders need customers to keep their business operating successfully. This means that you also have the option of working with a specific lender based upon how well their offer meets your financial goals when you are looking for homes for sale in Baton Rouge. Asking these questions helps you decide if you’ve found a lender that works for your best interests.

What Documents Will You Need to See?

An experienced loan officer will let you know what types of proof you need to bring to the meeting. In most cases, you’ll need to show some type of identification card such as your driver’s license. You’ll also need to show proof of your income with pay stubs, income tax reports, and W-2’s. Knowing what you need to bring saves time since you can avoid having to wait for an approval until you can submit the appropriate documents.

Can You Explain All of My Best Loan Options?

There are so many types of loans available that it is important for a lender to find out more about your situation so that they can offer you the best option. Be wary of a lender who immediately suggests a specific loan without finding out details about your life such as whether or not you are a veteran or first-time homebuyer since this can help save you money.

How Much of a Down Payment Do I Require?

Most first-time homebuyers expect to put down 20% of their house’s value. However, it is quite possible to get away with putting down less. There are many loan programs that allow for down payments as low as 3%, and you might even be able to get a 0% down payment approved if you meet the standards to qualify for special types of loans.

Do You Approve Loans In-House?

During the typical loan application process, you’ll typically meet with a loan officer. However, that is not the only person that will handle your application. Mortgage underwriters assess applications and make determinations about whether or not you’ll get approved. Working with a lender that approves loans in-house means that your loan officer and the underwriter may be able to iron out any hurdles to help get the loan approved. Someone outside of the office might be more likely to simply deny the application and move on.

What Will My Interest Rate and Payment Be?

This is one of the biggest questions to ask since you’ll be dealing with the answer for many years to come. Mortgage loan interest rates depend upon several factors such as your credit history and the current housing market rates. Once you know how much of a loan you need and the interest rate, you’ll be able to figure out if the payments fit your budget.

As a final note, you’ll want to make sure that you can get a loan pre-approval. Having this in hand can set you apart from other home buyers since it shows that you already have the financial ability to buy the house. Then, all you need to do is find the right house and maintain your credit so that everything is ready to go when you close on the home.