Lender guide & Questions

Having a list of mortgage questions to ask potential lenders is just the start. Knowing the answers you’re looking for puts you ahead of the game.

How quickly can we close on the loan?

It’s best practice to learn when the you can close on the loan so you can leverage this information when we eventually make an offer on a home. You want to choose a lender who can close your loan in 21 days or less.

What is my interest rate?

This seems obvious, but it’s important to establish the interest rates as these can easily fluctuate. This is especially prevalent in today’s market.

How much downpayment do I need?

You already have a number in mind or an amount prepared, but don’t show all your cards at once! Establish with the lender how much of downpayment is necessary to meet a loan that works best for you.

What is the annual percentage rate?

Now that you have an idea of what your payment rate will be, it’s time to find out what your annual percentage rate is. The difference between the two? The APR incorporates all of the embedded fees of the loan.

will i have to pay MORTGAGE insurance?

If you put down less than 20%, the answer will probably be "Yes."

Even if the mortgage insurance is "lender paid," it’s likely passed on as a cost built into your mortgage payment, which increases your rate and monthly payment. You’ll want to know just how much mortgage insurance will cost and if it’s an upfront or ongoing charge, or both.

What Will my monthly payments be?

You’ve probably asked this question already. But knowing what your monthly mortgage payment will be is kind of key to the whole deal. You’ll also want to ask if there is any prepayment penalty if you pay off the mortgage early — for instance, if you move or refinance. The answer should be "No."