1. How Will You Personalize My Loan Options?

A reliable mortgage lender should prioritize your unique financial situation over generic recommendations. They must assess your credit score, income, savings, and homeownership goals before suggesting loan types. Avoid lenders who push a “one-size-fits-all” solution without understanding your needs. A trustworthy partner will outline the pros and cons of each option, ensuring you make an informed decision.

2. What Are the Interest Rates and APR?

Always request detailed quotes for both the interest rate and Annual Percentage Rate (APR). While the interest rate reflects the cost of borrowing, the APR includes additional fees like origination charges, providing a clearer picture of the total loan cost. Comparing APRs across lenders ensures you’re evaluating offers on equal footing.

3. Do You Offer Rate Locks, and What Are the Terms?

Rate locks protect you from interest rate hikes during the loan process. Ask potential lenders:

• How long can the rate be locked?
• Is there a fee for locking the rate?
• Does the lock cover all loan costs?
• Is a “float-down” clause available if rates drop?

Understanding these details safeguards your budget and timeline.

4. What Closing Costs Should I Expect?

Closing costs vary by state and lender. Request a breakdown of:

• Mandatory fees (e.g., appraisals, title insurance)
• Optional services (e.g., home inspections)
• Third-party charges (e.g., attorney fees)

Transparency here helps avoid surprises and ensures you budget accurately.

5. What Is Your Estimated Timeline for Closing?

Align the lender’s processing speed with your homebuying timeline. Ask:

• How long does underwriting typically take?
• Are there common delays, and how are they resolved?
• Can you meet my target closing date?

A delayed closing can risk your purchase, so clarity on timelines is critical.

Final Tips

Take notes during lender discussions to compare responses later. Prioritize lenders who communicate clearly, answer questions thoroughly, and demonstrate flexibility to support your goals. With these five questions, you’ll streamline your search and secure a mortgage partner that aligns with your financial journey.