If you want to get the best rates, you need to be prepared when you’re seeking pre-approval on a mortgage.  That means being a little more assertive than normal when it comes to speaking with a mortgage professional.  This helps you collect information about the mortgage process and evaluate the data  – before making one of the biggest commitments/investments of your life.

I’d perhaps put marriage over buying a home in terms of commitments, but your spouse doesn’t have the potential to leak, catch fire, explode, collapse on you or bury you under water.

(I would hope not anyway.)

When you’re speaking with a mortgage banker in Michigan or another lender, and you start running through the fine details, it’s natural for your eyes to glaze over a bit and it’s tempting to just do whatever it takes to sign, get the zeroes, and get that new house.

Not all mortgages are created equal however, and not all mortgage lenders and professionals work the same.  Here are a few questions you should bring up while discussing your pre-approval with a mortgage professional.

1. Are You a Bank, Are you a Broker…are you both?

In general terms, a mortgage lender that is also a bank or has their own banking/financing division (many reputable brokers do have this) will have a lot more control over the appraisal process.  They may also be in contact with select appraisers who have serious knowledge of the city or neighborhood where you’re looking to settle down.

Consider that a lot of non-local appraisers have had a history of killing deals for would-be buyers in Michigan and you can see how working with a professional that is, or has a bank, could be a deal-saving move for you.

It’s important to note that (some) broker/banks originate loans and sell them straight to Fannie Mae or Freddie Max under the FHA loan program.  That gives you the same benefits of an FHA loan, including a lower down payment and less severe qualification guidelines, as opposed to some of the more strict guidelines of larger banks.  A good example is how FHA guidelines do not impose a minimum credit score, where a fair amount of larger banks require a 640 minimum FICO.

2. Can You Explain my Good Faith Estimate?

The most current, national standard GFE is pretty clear in clarifying the points of various deals.  This covers the commission of the broker/banker to the individual costs associated with the loan.  Even still, there’s no harm in asking a mortgage professional to explain the information to you so you fully understand the breakdown.

You can also ask for a fee sheet, because the latest edition of the GFE, while clearly showing the costs associated with the chosen loan scenario, doesn’t necessarily (clearly) define the funds you’ll need to close.  This could be more or less than those costs, so ask your mortgage professional for a fee sheet or estimate of funds.

3. How Long Does Closing Take? How Much Time do I Need for Appraisal?

Ultimately the amount of time it takes to close your mortgage in Michigan – which can drive the closing time for closing on the home – will really vary depending on the loan type and the type of lender you’re working with.  Mortgages with big brand banks are notoriously slower than those originated with a mortgage banker in Michigan.

An FHA loan could also take longer to close due to appraisal and underwriting when compared, perhaps, to a more conventional (non-FHA) mortgage.

When you speak with a mortgage professional, get a good estimate on these time frames in order to establish realistic expectation and to help make appropriate offers on homes (that are free of the drama of a ticking clock).

4. Are There Fees Associated with a Mortgage in Michigan?

This can depend on the lender.  Some charge for credit checks up front, and many will require that you pay for the home appraisal in advance.  The best question to ask is how much green you need to come up with just to have them run your application and take the necessary steps to seek pre-approval.

5. How Long Have You Been Originating Loans? How Long With Your Current Company?

The benefit to working with a mortgage banker in Michigan that’s been around the block a few times is that they have knowledge of advanced troubleshooting.  They can put a fire out before it starts, have information on workarounds, and backup plans to get approvals.  That means they’re savvy enough to get an approval through in a restrictive market.