Questions To Ask a Lender
When talking to different lenders, it’s a good idea to have questions
prepared so you can make comparisons. Here are some questions you
can ask to determine the right lender for you.
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1
What fees will I be responsible for at closing?
Closing fees are extremely important to know upfront—you’ll
need to ensure that you’ve saved enough to cover these costs. It’s
also an important factor when choosing a lender, as fees may
vary. Be sure to obtain at least a few Loan Estimates to compare
costs.
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2
Will you waive any of these fees or roll them into my
mortgage?
Again, this may determine what is owed upfront, your monthly
payment amount, and the mortgage lender you choose.
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3
How do you prefer to communicate with clients—email, text,
phone calls—or in person?
If it’s easier for you to write everything down and read answers
to questions, consider a lender who prefers email. Or, if you
prefer to talk through things, you may choose a lender who
prefers phone calls or meeting in person. While this is different
for everyone, establishing your communication preferences
upfront can make the mortgage process go more smoothly.
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4
How long are your turnaround times on pre-approval,
appraisal, and closing?
During the homebuying process, time is of the essence. If
pre-approval takes a lot of time, this could delay looking at
homes. If the appraisal has a long turnaround time, this can
delay the purchase of the home and your closing date. It’s
important not to rush, but it’s also important that a lender
doesn’t slow you down.
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5
Have you worked with the type of loan product that I need?
Knowing the type of loan you need and being familiar with
requirements for that loan type can make the difference
between a smooth or a bumpy loan process. For example, if
you’re in the military or a veteran, you may want to ask about VA
loans, which are mortgages backed by the Department of
Veterans Affairs. If you live on an American Indian reservation,
you may need a lender who specializes in loan products
designed for tribal land trust. Some other loan products include
FHA, USDA, Conventional, Jumbo and Reverse mortgages. Ask
the lender what loan products they offer and work with on a
regular basis. Make sure they are comfortable working with the
loan products that are most appealing to you.
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6
What are the down payment requirements?
You’ll want to know these requirements ahead of time so you can
prepare. Also, these conditions may influence the lender you
choose, especially if one lender has requirements that you can’t
meet.
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7
Do you offer eClosings?
An eClosing allows you to sign some or all of the closing
documents electronically, reducing the amount of paperwork
that must be signed in person. In some cases, the closing and/or
notarization requirement can be fulfilled digitally, so you don’t
need to attend an in-person closing.