5 Questions to Ask a Mortgage Lender Before You Buy

Buying a home is one of the most exciting—and sometimes nerve-wracking—adventures you’ll ever embark on. As you start your journey, you’ll quickly realize that choosing the right mortgage lender is just as important as finding the perfect house. But how do you make sure you’re getting the best deal and working with someone you trust?

Here are five must-ask questions to help you navigate those early lender conversations with confidence.

• 1. What Types of Loans Do You Offer?
  Not all loans are created equal! From fixed-rate to adjustable-rate, FHA to VA, different loans come with different benefits and requirements. Ask your lender to walk you through your options and help you understand which loan types are best suited to your financial situation and homeownership goals.
• 2. What Will My Interest Rate and Annual Percentage Rate (APR) Be?
  The interest rate is the cost of borrowing money, but the APR gives you a fuller picture by including fees and other costs. Ask for both numbers, and don’t be shy about comparing them with other lenders. Even a small difference in rates can mean big savings over time!
• 3. What Are the Total Closing Costs?
  Closing costs can add up quickly—think appraisal fees, title insurance, and more. Get a detailed breakdown so you aren’t caught off guard at the closing table. A good lender will be transparent and help you plan for every dollar.
• 4. Is There a Prepayment Penalty?
  Some loans charge a fee if you pay them off early (say, if you refinance or sell your home). Make sure you know if your loan has this penalty, so you can avoid unpleasant surprises down the road.
• 5. How Long Will the Loan Process Take?
  Timing is everything, especially if you’re working with a tight moving schedule. Ask about average processing times and what you can do to help keep things on track. Clear communication here can make your home buying experience much smoother.

Final Thoughts

Remember, no question is too small when it comes to your future home. The right lender will welcome your curiosity and empower you with the knowledge you need. Take your time, compare your options, and don’t hesitate to ask for clarification. Happy house hunting!