10 Questions to Ask Your Lender Before Getting a Mortgage

Securing a mortgage is one of the biggest financial decisions you’ll make. Asking the right questions can help you understand your options and avoid surprises down the road. Here are 10 essential questions to ask your lender:

1. What Types of Loans Do You Offer?

Understanding your lender’s available options, such as fixed-rate, adjustable-rate, FHA, or VA loans, helps you choose the one that best suits your needs.

2. What Interest Rate Can I Qualify For?

Ask for specifics about the interest rate, whether it’s fixed or variable, and how it’s determined based on your credit profile.

3. What Are the Closing Costs?

Lenders should provide an estimate of closing costs, which typically include fees for appraisals, inspections, and title insurance.

4. Do I Need Private Mortgage Insurance (PMI)?

If your down payment is less than 20%, you may need PMI. Ask about the costs and how to remove PMI later.

5. How Much Do I Need for a Down Payment?

Understand the minimum down payment required for your loan type and whether you qualify for down payment assistance programs.

6. What’s the Loan’s APR?

The annual percentage rate (APR) includes both the interest rate and additional fees. It’s a better measure of the loan’s overall cost.

7. Can I Lock in My Interest Rate?

If rates are favorable, locking in your rate can protect you from fluctuations while your loan is being processed.

8. Are There Prepayment Penalties?

Some loans charge fees for paying off your mortgage early. Confirm if this applies and how it could impact you.

9. How Long Will the Loan Process Take?

Knowing the timeline helps you plan ahead, especially if you’re coordinating a move or sale of another property.

10. What Documents Will You Need From Me?

Prepare for the application process by gathering necessary paperwork like tax returns, pay stubs, and bank statements.

Start Your Homeownership Journey with Confidence

Asking these questions ensures transparency and helps you find the best mortgage for your situation. Remember, an informed buyer is a confident buyer.

Ready to get started? Connect with trusted lenders and explore your options at www.mikehomesweethomes.com.