15 Questions to Ask a Mortgage Lender

Two lenders can quote the same rate and very different loans. These questions find the difference.

A rate on its own tells you little. Points, lender fees, lock terms and how reliably the lender closes on time matter just as much — especially in Georgia, where your contract has dates you have to hit.

Ask every lender the same questions, and compare their Loan Estimates line by line.

1. 1. Which loan programs do I qualify for?

   Conventional, FHA, VA and USDA each have different down payment, mortgage insurance and property rules. A good lender explains the trade-offs for your situation rather than steering you to one.

2. 2. What is the rate, and what is the APR?

   APR folds certain costs into a yearly figure, which makes comparing offers easier. A low rate with a high APR usually means points or fees.

   Ask whether the quoted rate assumes a particular credit score, down payment or lock period, so you can compare like with like.

3. 3. Are there discount points in this quote?

   Points are prepaid interest that lower the rate. Make sure each quote is either with or without points so you are comparing like with like. See mortgage points and buydowns.

4. 4. What are your lender fees?

   Origination, underwriting, processing — they appear in Section A of the Loan Estimate. That section is the clearest place to compare lenders directly.

5. 5. How long is the rate lock, and what does an extension cost?

   Your lock has to cover your closing date. Ask what happens if closing slips, and whether there is a float-down if rates fall.

   New construction and slow closings can require longer locks, which may cost more. Ask before you choose a lock period.

6. 6. How much will I need at closing?

   Down payment, closing costs and prepaid items together. Ask for a written estimate, including the Georgia intangible recording tax on the loan.

7. 7. What will my monthly payment be, all in?

   Principal and interest plus property taxes, homeowners insurance, mortgage insurance and HOA dues if any. That is the number to budget around.

8. 8. How does mortgage insurance work on this loan, and how does it end?

   Conventional PMI and FHA mortgage insurance work differently and end differently. See PMI explained.

9. 9. Do you offer down payment assistance programs?

   Not every lender participates in every program. Ask which they offer and how they affect the rate and timeline.

10. 10. Is your pre-approval underwritten?

    A pre-approval reviewed by an underwriter is stronger than one based only on a credit pull and conversation. Sellers notice the difference in a competitive offer.

11. 11. How fast do you typically close, and can you meet my contract dates?

    Georgia contracts set dates for the loan and closing. A lender who misses them can put your deal at risk.

12. 12. Who will be my point of contact?

    You want a name, a phone number and a promise of updates. Ask who covers when that person is out.

13. 13. What can cause my approval to change before closing?

    New debt, job changes, large deposits and appraisal issues are the common ones. A good lender tells you up front.

14. 14. What happens if the appraisal comes in low?

    Ask how the lender handles reconsideration of value and what your options are. See appraisal gaps.

15. 15. Can I see a Loan Estimate today?

    Lenders must provide a standard Loan Estimate within three business days of an application. Getting several lets you compare side by side.

General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.