5 Questions to Ask Your Mortgage Lender

Whether you’re a first-time home buyer or you’ve been through the process before, finding a lender you trust is critical. You need to know the mortgage team you’re working with has your back.

For example, they get back to you quickly, meet deadlines for documentation, explain the process and answer all your questions.

When you’re evaluating potential lenders, being sure they can tick those basic boxes is a great starting point. But that’s not all you should consider.

Here are 5 questions you should ask when evaluating a lender.

1. What type of mortgage is right for me?

   There are many mortgage options out there. You’ll want to evaluate your lifestyle, needs and future plans to help you find the right loan. Your lender can walk you through the range of mortgage products and explain how each would work for your situation.

2. What’s the interest rate on my home loan?

   Your interest rate will affect how much your monthly mortgage payment is. An important factor in establishing your interest rate is deciding between a fixed and adjustable rate. A fixed rate provides steady payments for the life of the loan while an adjustable rate is often a lower upfront option. Both rate types offer pros and cons, and your lender can explain how they work.

3. What will my monthly mortgage payments be?

   Your lender should be able to give you an estimated monthly payment including costs like taxes and insurance to ensure you’re choosing a mortgage that works for your budget.

4. What fees are part of closing on a home?

   Usually there are some fees you’ll need to pay before closing on your mortgage. It’s important to talk to your lender about what fees to expect and about optional steps that may incur fees, such as getting a home inspection.

5. What can I expect during the mortgage process?

   The mortgage process can take time, so you’ll want to discuss timelines with your lender and work together to figure out a plan that works for you. Ask how you’ll be kept informed of updates and how you’ll be sent important paperwork and other information.

Take notes when you speak to your lender and don’t be afraid to ask follow-up questions if you still don’t understand something. Remember, this is one of the biggest purchases you’ll ever make, so every question – and answer – matters!

Ready to buy? Get in touch with our local mortgage lending experts or get preapproved. 

Still researching? Explore our Mortgage Learning Center.