What Questions Should I Ask My Mortgage Lender?

The most expensive mistake when choosing a mortgage lender might be asking only one question: “What’s your interest rate?”

I get it. Everybody wants a good interest rate. You should!

But what if getting that rate costs you thousands more than you realize? Or the person quoting it hasn't really looked at your income? Or you find the house you love on Sunday afternoon and can't get your lender on the phone?

Those are the conversations I wish more buyers were having.

After 17 years working with all kinds of borrowers, I've learned that people often don't know what to ask because no one has explained what happens behind the scenes.

So let's talk about it. Here are ten questions I'd ask about the money, the options, and the person you're trusting to help you buy a home.

1. How do you get paid, and how does that affect my interest rate?

Let's start with a question that might feel a little uncomfortable.

Ask it anyway.

Every mortgage company has expenses to cover. Offices, employees, advertising, technology. All of that costs money, and the way a company runs its business can affect the interest rates and fees it offers.

I keep my overhead low. I also have caps on my compensation, which means there is a point where I don't keep making more just because the loan gets bigger.

To me, that's part of running the kind of business I want to run.

You don't need to learn all the industry terminology. But you should feel comfortable asking how the company gets paid and how that cost fits into your loan.

2. Are interest rates the same everywhere?

No. And I think this surprises a lot of people.

There isn't one interest rate that gets handed down every morning for every lender to offer.

As a broker, I work with multiple wholesale lenders. They're competing for business, and their offers can be different even when we're looking at the same buyer on the same day.

When the market moves, one lender might make a bigger change than another. Having several options gives me somewhere else to look.

So ask: “Are you shopping multiple lenders for me, or are we only looking at your company's options?”

That's worth knowing before you assume you've seen everything available to you.

3. What am I paying to get that lower rate?

Here's a little peek behind the curtain: a lender can show you a lower interest rate by having you pay more upfront to get it.

That doesn't automatically make it a bad choice. But you need to know what you're buying.

Ask to see the Loan Estimate and look at Section A, the origination charges. What are the lender's fees? Are you paying discount points to lower the rate? Are there lender credits offsetting any costs?

If one offer has a lower interest rate but a higher APR, that's a reason to dig into the fees together.

Then ask the question that really matters: “How long will it take me to get that extra money back in monthly savings?”

For instance, if you're paying an extra $3,000 to save $100 a month, that's 30 months before those payment savings cover the extra cost.

What if you sell or refinance before then?

That's why I want to talk about your plans before recommending that you spend more money buying a lower rate. We need to compare the same loan details and look at the whole offer.

You can even send me your Loan Estimate for a free review. I'll go through it with you and give you an honest assessment.

4. What did you actually review before preapproving me?

A quick preapproval sounds great. Until something important got missed.

Did you upload your income documents? Your bank statements? If you're self-employed, did someone actually go through your tax returns and work out the income you can use?

I've had conversations where someone says, “I have $50,000.”

Okay. Where is that $50,000?

Is it in the bank? Is it cash? Gold? Cryptocurrency? Those answers lead to different conversations about how we document the money and whether we can use it.

I'd rather ask those questions now than after you've fallen in love with a house, negotiated a contract, and paid for inspections and an appraisal.

Some people might think my process is overkill.

“Overkill has never killed a deal in underwriting.”

That's how I look at it. Let's get the whole story out in the open while we have time to work through it.

5. Will you be available when I actually need you?

I don't know too many people who buy houses at 11 a.m. on a Tuesday.

Usually, we're talking Friday evenings or Sunday afternoons. That's when you find something you love and need to decide what to do.

Shouldn't your lender be available to help you run updated numbers or talk to the listing agent?

Ask about nights and weekends. Ask who you'll call. I believe availability is one of my superpowers, and there's a reason for that.

Twenty-seven offers. One lender called.

Back in 2022, when buyers were competing like crazy for houses, I had a client making an offer on a property.

I called the listing agent to introduce myself, talk about my client's preapproval, and answer any questions about me, my company, or our ability to get the loan closed.

This was an experienced Kansas City Realtor. He told me he was looking at a spreadsheet with 27 offers.

I was the only lender who had called him.

He said our offer might not have been the strongest, but he was going to move it to the top of the list to discuss first with his sellers.

That call has always stuck with me. Your lender can make a difference in the offer you're making. Sometimes it starts with simply picking up the phone.

6. Do I qualify for any other loan options?

This is a great question to put directly to your lender:

“Do I qualify for any other types of loans? If so, can you show me a Loan Estimate or fees worksheet for those options and go over the numbers with me?”

Sometimes a lender is more comfortable with one loan product. Sometimes that product is easier for them to work with.

But I want to know what makes sense for YOU.

I've worked with veterans who had been pointed toward conventional loans by other lenders. Once we talked through their situation, a VA loan turned out to be the better fit.

Ask why a particular loan is being recommended. Ask what else was considered. Have someone put the numbers in front of you and explain them.

That's the same idea we talked about in choosing between conventional, FHA, and USDA loans. There isn't one answer for everyone.

7. Are those tax and insurance estimates realistic?

This is HUGE right now.

I've seen payment estimates with tax and insurance numbers that look awfully low. Sure, that makes the payment on the page look better. But you're the one who has to live with the actual bills.

Here in Kansas and Missouri, those costs deserve a real conversation.

I prefer to use conservative estimates upfront. When you have a particular property in mind, we can look up its current taxes and get an insurance quote to sharpen those numbers.

Ask what's included in the payment and what you'll pay separately, including any mortgage insurance or HOA dues.

A smaller estimate doesn't make the actual expense smaller.

8. How much money do I really need to bring?

Your down payment is just one piece.

There are title fees, lender fees, appraisal costs, and money for things like insurance and the tax and insurance account that may be set up with your loan.

Have someone walk you through what you'll pay along the way and what you'll still need at closing.

Then ask about your options.

Could you negotiate for the seller to pay some closing costs? Could a slightly higher interest rate give you a lender credit that reduces the money you need upfront?

And what are you giving up in return? Maybe you could negotiate a lower purchase price instead of a seller credit. Maybe you'd rather bring more cash and keep the monthly payment lower.

I often ask: “What is more important to you: a lower payment or less cash out of pocket?”

That's a conversation we should have together, with the numbers in front of us.

9. What happens if my closing gets delayed or rates go down?

When you lock your interest rate, ask how long that lock lasts.

If you want to understand the timing before you are under contract, read when it may make sense to lock your mortgage interest rate.

If you're buying new construction and closing is supposed to happen in 30 days, should we look at a 45-day lock? Anyone who has been around construction knows a little breathing room can be useful.

The same goes if you're waiting for your current house to sell.

In my experience, building in that time upfront can cost less than extending a lock later. Ask what both options would cost and who pays if an extension is needed.

Then ask the other side of the question: “If rates go DOWN, can mine come down too?”

Some lenders offer what's called a float-down. Some don't. Find out how yours handles it before you lock, so you know where you stand.

10. Will you take as much time with me as I need?

A lender you can trust won't make you feel like your questions are holding up their day.

They'll take the time. They'll explain the numbers. They'll help you understand why they're recommending something.

One thing that gives me pause is a lender who wants to see everyone else's interest rate before showing you their own offer.

Or someone who says, “Go shop around, then come back and we'll try to match or beat it.”

My question would be pretty simple.

“Why wouldn't you just give me your best deal upfront?”

At the end of the day, pay attention to your gut. Do you trust this person? Do you feel comfortable asking another question? Do you believe they're on your side?

Those things matter.

A few questions you might still have

Should I choose whoever offers the lowest interest rate?

I'd want to see what that rate costs first. Then I'd want to know who is going to help me get from the first conversation to closing. Both matter.

Is it okay to ask a lender to explain another offer?

Absolutely. Bring the Loan Estimate and ask someone to walk through it with you. You shouldn't have to guess whether you're getting a good deal.

What if I don't even know where to start?

Start with a conversation. Tell me what you're hoping to do and what you're unsure about. My free Mortgage Roadmap can also help you see what the process looks like.

You don't have to become a mortgage expert

You just need someone willing to let you in on how this works.

Someone who will answer the uncomfortable questions, look at the whole picture, and take the time to help you feel good about your decision.

If you're buying in Kansas or Missouri, let's talk through it. You don't have to have everything figured out before we do.

Conversations are free.

Want to dig deeper?

These Consumer Financial Protection Bureau guides explain comparing Loan Estimates, points and lender credits, and rate locks.