Questions for the Finance Process

Do you have any lender referrals for me?

Your real estate agent or broker probably knows practically everybody in your market, including a variety of excellent lenders and mortgage brokers. He or she will be able to refer you to several. You will probably want to compare three different lenders in order to get a sense of what your options are and what products they offer.

How should I choose the right lender?

Your personal financial situation will go a long way in determining which lender is right for you. There are lenders who specialize in working with first-time homebuyers, buyers with poor credit, self-employed buyers, and more. Talk to your agent about your specific needs, and find out which lender is best able to help.

Can I get help with closing costs?

If you know that you will need help with closing costs, talk to your real estate agent about how you can structure your offer in order to ask for seller help at closing. This will often involve offering a higher sale price to make up some or all of the difference.

Are there grants or programs to provide down payment assistance or help with closing costs?

Your real estate agent should have a good understanding of ways to obtain assistance. These may be specific to a particular neighborhood, they may be part of a builder’s offer, or they may be based on your place of employment, financial history, or other factors.

Can you explain any contingencies related to the finance process?

When you make the offer, your real estate agent will discuss with you the various contingencies that you can attach to the transaction, including a financing contingency and an appraisal contingency. There will be various options available so it is important for you to ask your agent how these will affect both the strength of your offer and your own protection during the process.

Are there any alternatives to a traditional mortgage loan?

If you are looking for an alternative financing option like seller financing, rent-to-own, or an exchange scenario, be sure to discuss this with your real estate professional early in the process. This will allow him or her to connect with colleagues and investors in your area to help you find the property that fits your needs and your pocketbook.

Remember, your real estate agent or broker has a fiduciary duty to protect your financial information. You do not need to share bank statements, credit score, or other information, but whatever information you choose to share about your circumstances will be held in strict confidence. Take advantage of the perspective and insight that they are able to provide so that you can better understand the process and make more informed decisions.