Top Questions to Ask a Mortgage Lender

For the lender
  • Are you licensed by the state?
  • How long have you been originating loans?
  • Whom do you represent—a bank, broker, finance company?
  • What types of loans do you offer?
  • For a reverse mortgage, who will I work with after closing?
  • What are the loan application/approval process fees?
  • Are you going to hold this loan or sell it?
  • How do you keep my personal information secure?
  • Will you sell my information?
  • How can I reach someone after hours?
About loan rates
  • What interest rate are you offering, and how did you arrive at it?
  • Is this the best rate you can give me?
  • How will the rate change over the life of the loan?
  • What is the highest my ARM (adjustable rate mortgage) rate can go?
  • How long will you lock in my rate? What does the lock cost me?
  • Can you explain an annual percentage rate (APR)? What is it for this loan?
For the mortgage brokers
  • How do you get paid?
  • How much will you make on this loan?
  • Who are the top lenders that purchase loan applications from you?
About loan costs
  • Will you give me a fee sheet or estimate of funds to close?
  • Will you explain my good faith estimate (GFE)?
  • What am I paying in points?
  • What are my monthly payments?
  • Do I need to pay private mortgage insurance (PMI)?
  • Are there any prepayment penalties on this loan?
  • How long will the loan take to close?