Mortgage Lender Questions

As a Mortgage Lender, Be Prepared to Face These Questions from Borrowers

September 12, 2017

Buying a home is not only an emotional time for the buyer, but also physically taxing. Weeding through all that paperwork to look for favorable terms can really suck the joy out of buying a home. If that is not all, the prospective buyers also have to spend an inordinate amount of time agonizing over mortgage lenders and building tight loan applications.

Despite all the effort, there are still as many as 27% homeowners who ended up being dissatisfied with the lender they eventually chose. The most common reason for this dissatisfaction can be attributed to false commitments made by lenders, poor after-close service, lack of communication and lack of clarity.

However, if you want to sustain in the ever-competitive mortgage lending business, then you need to play this honestly from the start and be prepared to answer these following questions that your borrowers are likely to ask.

What Experience Do You Have in Handling the Kind of Loan I Am Looking For?

As a mortgage lender, having expertise in specialized home loans such as USDA loan can help channel the application process in the right direction. If your borrower is specific about the kind of loan they are looking for, it is useful and even necessary to have exact information.

What Mortgage Loan Options Do You Have?

When a lender gives variety of options to its borrowers based on their financial situations, they are likely to choose you over other service providers. In an aggressive lending business, having the ability to tailor your services can go a long way in giving you the edge.

Do You Have Provision for Down Payment Assistance?

Sometimes your borrowers may not have enough funds to cover the down payment requirement necessary for the loan approval. Most importantly, paying higher down payment can lower the interest rate that can seriously add up over the course of loan tenure. So if you offer assistance programs, the prospective borrowers are likely to choose you.

Do You Offer Mortgage Rate Lock?

The best way to build trust with your borrowers is by offering them options that are in their best interest. If you offer mortgage rate lock option, be sure to discuss it with them in detail. You can also proactively tell them about the associated fees and how much they would have to pay in order to extend the period of locked rate, in case it elapses before closing.

Do You Have In-House Underwriter?

Borrowers mainly ask this question because in-house underwriting means loans will be processed quickly and efficiently. It also means that there will much fewer delays that could impact the closing date.

Will There Be Open and Timely Communication?

Some of the best deals fall apart due to lack of timely communication between the parties involved. As a lender, you are not only required to, but also obliged to communicate openly with your borrowers. Sometimes not doing so within the fixed timeframes can be treated as non-adherence of compliance. You can avoid this situation by providing a clear channel of communication so that the borrower can reach out to you when needed.

With the implementation of new rules in mortgage business, the lenders have a lot on their plate when it comes to assessing borrowers for home loan approvals. They are not only required to stay within compliance guidelines, but also meet deadlines in a timely manner.

But with the right expert support, it becomes easier to meet client expectations and stay within the regulatory framework. Expert Mortgage Assistance is that support system that will allow you to stay focused on client evaluation while their trained professionals handle other important tasks such as analysis of mortgage / loans, evaluate credit worthiness of the borrower, assess risk profile, as well as other related activities.

 

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