Questions to Ask Before Choosing a Mortgage Lender

Buying a home is one of the biggest financial decisions you’ll ever make—and choosing the right mortgage lender can make all the difference. The right lender can help you save thousands, simplify the process, and avoid costly surprises. Before you sign anything, here are the key questions every buyer should ask.

1. What Types of Loans Do You Offer?

Not all lenders offer the same loan products. Ask whether they provide conventional, FHA, VA, USDA, or jumbo loans. The right loan type depends on your financial situation, down payment, and long-term goals.

2. What Is the Interest Rate and APR?

Get a clear breakdown of the interest rate (what you pay to borrow the money) and the APR (which includes interest plus fees). This helps you compare apples to apples when evaluating multiple lenders.

3. What Are Your Closing Costs?

Closing costs can range from 2%–5% of the loan amount. Ask for a Loan Estimate that outlines fees like underwriting, appraisal, title insurance, and taxes so you’re not blindsided at closing.

4. How Long Does the Approval Process Take?

Timelines can vary between lenders. A competitive market might require a quick turnaround, so ask how long pre-approval and final approval usually take—and whether they can meet your deadlines.

5. Do You Offer Rate Locks?

Interest rates can fluctuate daily. Ask if you can lock your rate, how long the lock lasts, and whether there's a fee. This protects you if rates rise before closing.

6. What Credit Score Do I Need?

Each lender has their own minimum credit score requirement. Knowing where you stand—and what options are available if your credit needs improvement—can help you prepare.

7. Are There Any Prepayment Penalties?

Some loans charge a fee if you pay off your mortgage early. Make sure your loan terms allow flexibility in case you want to refinance or pay off your home faster.

8. Who Will Service My Loan?

Some lenders sell the loan after closing, meaning you’ll make payments to a different company. Ask who will service the loan and how to contact them if issues arise.

9. How Do You Communicate During the Process?

Clear communication matters. Ask how they’ll keep you informed—whether it’s email, phone, or an online portal—and how responsive their team typically is.

Final Thoughts

Choosing a mortgage lender isn’t just about getting the lowest rate—it’s about working with someone who understands your goals, keeps you informed, and supports you from pre-approval to closing.

Need recommendations? I work with trusted lenders and would be happy to connect you with someone who fits your financial needs. Let’s get you home-ready!