20 Questions to Ask Your Lender

Are you thinking about buying a home? This is very exciting! Getting your finances in order before starting your home search is such an important step in the process and a bit of planning and preparation can go a long way when it comes time to make an offer on the perfect new home. As a result of being prepared with a loan program and pre-approval, you are likely to be a stronger candidate in the seller's mind when reviewing your offer.

Keep in mind that not all lenders or loan programs are created equally so it is important to shop around and understand the different options available to you. We've put together a quick guide to help you know what to ask your lender so you can make an informed decision as to what lender and loan program to choose.

20 Questions to Ask Your Lender

1. Can you share the differences between the loan programs that you think would be a good fit for me?

2. What is the current interest rate, and is the rate quoted the lowest for that day or week?

3. How can we buy down the interest rate?

4. For the loan offered, what is the Annual Percentage Rate (APR)?

5. Is the loan rate adjustable or fixed?

6. What are the discount points and origination fees?

7. What are all the costs of the offered mortgages?

8. How will the rate and loan payments vary if the rate is adjustable?

9. What are the qualifying guidelines for this loan?

10. What is the lender’s required down payment for this loan?

11. Which documents will I need to provide?

12. Can you explain closing costs?

13. Is there anything I could do to lower the interest rate that you offered me?

14. Does the lender offer a loan rate lock, and is there a fee for the rate lock? How long is the rate lock?

15. Is there a prepayment penalty?

16. Are you equipped to approve loans in-house?

17. How much time do you need to fund the loan?

18. Will mortgage insurance be required?

19. Can the term of the loan be extended, and is there a cap on payment adjustments?

20. Is there a cap on payment adjustments?

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Not sure who to call to get started with the loan process? Give us a call!