🏡 7 Questions to Ask Your Mortgage Lender Before You Buy

Buying a home is exciting—but when it comes to financing, it’s easy to feel overwhelmed. That’s where your mortgage lender comes in. But before you lock in a loan, it’s important to ask the right questions to make sure you’re getting the best deal and fully understand your options.

Whether you're a first-time buyer or a seasoned homeowner, here are 7 key questions to ask your mortgage lender before you sign on the dotted line:

1. What Type of Loan Is Best for Me—And Why?

There are several types of mortgage loans available, including conventional, FHA, VA, and USDA loans. Each comes with its own requirements, benefits, and drawbacks.

Your lender should help you figure out:

• Which loan type best suits your financial situation.

• How your credit score, income, and debt affect your options.

• What the pros and cons are for each loan type.

👉 Tip: If your lender only offers one type of loan, it might be worth getting a second opinion.

2. What Will My Interest Rate and APR Be?

The interest rate is what you pay to borrow money. The APR (Annual Percentage Rate) includes interest plus lender fees and gives a fuller picture of the loan’s true cost.

Ask:

• Is this a fixed or adjustable interest rate?

• Can you lock in the rate? For how long?

• What factors could make my rate change before closing?

3. How Much Will I Need for a Down Payment and Closing Costs?

This question helps you understand your upfront costs and budget accordingly. Your lender should break down:

• The minimum down payment required.

• Whether you qualify for any low-down-payment options.

• Estimated closing costs (typically 2–5% of the home price).

You’ll also want to ask if these costs can be rolled into the loan or covered by the seller.

4. Can I Get Pre-Approved—and How Long Does It Last?

A mortgage pre-approval shows sellers you’re serious—and financially ready to buy.

Ask your lender:

• What documents are needed for pre-approval?

• How long is the pre-approval valid?

• What can cause it to change or expire?

This step also helps you shop with confidence by knowing your price range.

5. Are There Any First-Time Buyer Programs or Incentives I Qualify For?

From government grants to local down payment assistance, there may be programs available to make buying more affordable.

A good lender should:

• Be knowledgeable about local and national programs.

• Help you understand eligibility.

• Walk you through the application process if you qualify.

6. What’s My Estimated Monthly Payment—Including Taxes and Insurance?

Don’t just ask about your loan payment—ask for your total monthly cost.

This includes:

• Principal and interest

• Property taxes

• Homeowners insurance

• PMI (private mortgage insurance), if applicable

This full breakdown helps you avoid surprises later on.

7. Are There Any Penalties for Early Payoff or Extra Payments?

If you plan to pay extra each month—or want to pay off your loan early—make sure you understand the terms.

Ask:

• Is there a prepayment penalty?

• Are there fees for refinancing later?

• Can I make biweekly or lump-sum payments to reduce interest?

This can save you thousands in the long run!

🎯 The Bottom Line

Your mortgage lender is more than just a number cruncher—they should be your financial guide through one of life’s biggest investments. Asking these questions up front helps you feel confident, informed, and empowered throughout the home-buying process.

Still looking for a trusted lender? We work with some of the best in the business and are happy to connect you.

👉 Thinking about buying soon? Let’s chat about your next steps—financially and beyond. Call 269-633-9243, the Keefer Fischer Team office to start your home buying journey!