The Most Important Questions to Ask Your Mortgage Lender or Broker

When you're buying a home, whether it's in Texas, Florida, California or Colorado, you’re not just house hunting. It’s one of the biggest arguably the biggest financial decisions of your life. So, naturally, you may have a lot of mortgage loan questions and questions to ask a mortgage lender about how the homebuying and financing process works.

Here are some of the most common questions to ask a mortgage lender or mortgage broker. If you have any other lender questions, please reach out by clicking here. We’re happy to help!

1. What Will My Total Monthly Payment Be?

Depending on what you agree with your lender, your monthly mortgage payment may be more than just principal and interest.  It typically includes escrows for property taxes, homeowners insurance and possibly HOA dues, plus mortgage insurance (depending on your loan program and down payment). These added costs can significantly change what you pay each month and impact your overall budget.

This is one of the first questions to ask a mortgage lender for pre approval, because knowing your true monthly payment avoids surprises later. It’s also one of the most important questions to ask a mortgage broker as a first-time home buyer, since new buyers often underestimate taxes and insurance.

Be sure to ask for a breakdown of all components of your projected monthly payment BEFORE home shopping. Don’t just take a base quote at face value, this is one of the most overlooked questions to ask when getting a mortgage. Ask what happens if your taxes or insurance go up. Use our mortgage calculator to get a sense of what your monthly number may look like.

2. Which Loan Product Is Right for Me?

There are more home loan options available today than ever before, and the right one for you depends on your situation. Do you want a fixed rate loan or an ARM? Are you self-employed? Do you receive RSUs or commission? Are you trying to buy a new home before selling your current one? These details matter and should always be part of your mortgage broker questions or questions to ask your loan officer early on.

At the most basic level, you’ll want to understand the differences between Conventional, FHA, VA, and Jumbo loans. Conventional loans are the most common and generally require higher credit scores and a minimum 3% down payment. FHA loans are designed to help first-time buyers and those with less-than-perfect credit, with a down payment as low as 3.5%. VA loans are available to eligible veterans and active-duty service members, requiring no down payment at all. Jumbo loans cover properties that exceed conventional conforming loan limits, and while they typically demand stronger credit and higher down payments, they’re essential in higher-cost housing markets.

But that’s just the starting point. One of the smartest questions to ask a mortgage broker, especially for non-traditional borrowers, is whether they offer specialized loan programs that banks often can’t. At LendFriend Mortgage, we unlock programs like bank statement mortgages, asset depletion loans, DSCR loans, Buy Before You Sell bridge solutions, crypto-backed mortgages, one-time close construction loans, and RSU income mortgages.

These programs are game-changers for buyers who don’t fit neatly into the traditional W-2 box and are often missed when borrowers only focus on questions to ask a bank lender. They’re also critical for maximizing buying power, especially in Texas markets where buyers may need creative solutions to compete.

3. What Credit Score Do I Need To Have?

Many buyers want to know what questions should I ask my mortgage lender about credit. Most lenders will say you can qualify with a score as low as 620 (or even 580 with FHA loans), but that’s the minimum, not the target. Aim for a credit score above 720 for better mortgage rates.

This is also one of the best questions to ask a lender when buying your first home, since your score directly impacts affordability. Improving your credit score before you apply isn’t as daunting as it sounds. Paying down revolving credit card balances to under 30% of their limit can quickly improve your utilization ratio. Making all payments on time , even for utilities and small accounts, can boost your history.

Ask your loan officer what steps you can take now to improve your score and secure better pricing. This is one of the most valuable loan officer questions to ask when buying a house.

4. Are There Prepayment Penalties?

You may find yourself in a position to pay off your mortgage early. If you can swing it, this can save you thousands of dollars in interest. However, not all mortgage lenders allow clients to do so without conditions, which makes this one of the most important questions to ask mortgage lenders upfront.

For most borrowers using conventional, FHA, VA, or jumbo financing, federal rules require these loans to be “Qualified Mortgages, ” meaning they cannot include a prepayment penalty. The main exception comes with DSCR loans designed for real estate investors.

If a lender is charging prepayment penalties on anything other than a DSCR loan or hard money financing, that should be a major red flag. In those cases, you should pause and get a quote from another lender before moving forward, because standard consumer mortgage products should not penalize you for refinancing, selling, or paying off your loan early.

5. What Will Closing Costs Be, and Can I Negotiate Them?

Closing costs in Texas typically range from 2% to 3% of the purchase price, but that number can move depending on loan type, location, and how the deal is structured. Closing costs include lender fees, third‑party fees, and prepaid items such as property taxes and homeowners insurance. Common line items include the appraisal, origination charges, underwriting fees, title insurance, recording fees, and prepaid escrows.

One of the smartest questions to ask a home loan lender is: “What’s included in my Loan Estimate, and which of these fees can I shop or negotiate?” Not all closing costs are created equal. Some fees are lender‑controlled and can vary meaningfully from one lender to another, while others are third‑party fees that are either regulated or relatively fixed.

Costs like title insurance rates are set by the state, so shopping title won’t change the premium itself. However, lender fees, discount points, and certain administrative charges can differ significantly. That’s why comparing Loan Estimates line by line matters more than just comparing rates.

It’s also important to ask about credits. Seller concessions, builder incentives, or lender credits can often be used to offset closing costs, especially in slower or more balanced markets. In some cases, you may be able to trade a slightly higher rate for lower upfront costs, which can make sense depending on how long you plan to keep the loan.

These are exactly the types of questions to ask a lender when buying a house that separate prepared buyers from surprised ones. Understanding what you can negotiate, what you can shop, and what is fixed helps you avoid last‑minute sticker shock and structure a deal that fits both your short‑ and long‑term goals.

6. Do I Need an Escrow Account?

Escrow is one of the most common mortgage lender questions buyers overlook, and it can have a meaningful impact on both your monthly payment and cash flow. Most lenders require an escrow account if you’re putting less than 20% down, but even when escrow is optional, the decision deserves a closer look, especially in Texas, where property taxes are among the highest in the country.

An escrow account collects a portion of your annual property taxes and homeowners insurance each month and pays those bills on your behalf when they come due. The benefit is simplicity and protection: you don’t have to worry about large lump-sum bills or missed payments. The tradeoff is a higher monthly payment and less control over your cash, since those funds are held by the servicer.

If you’re eligible to waive escrow, one of the most important questions to ask a mortgage lender is how that choice affects your rate and fees. Some lenders charge a pricing adjustment for escrow waivers, while others do not. In many cases, the slightly lower payment without escrow is offset by the discipline required to save for tax and insurance bills on your own.

This question matters even more after closing. Escrow accounts are subject to annual analysis, which means your monthly payment can change if taxes or insurance increase. Many homeowners are surprised when their payment goes up, not because of the loan, but because escrow projections were adjusted. Understanding how escrows work, how shortages are handled, and whether you’ll have the option to spread increases over time helps avoid frustration later.

Asking your lender to show both scenarios, escrowed and non-escrowed, side by side is one of the most practical questions to ask when choosing a mortgage lender. It ensures you understand the true monthly cost of ownership and can decide which setup fits your budgeting style and risk tolerance.

7. What’s My Interest Rate and APR?

Every buyer knows to ask about the interest rate. But one of the crucial questions to ask a lender is about the APR, which includes fees and points. Interest rate alone only tells you the cost of borrowing the principal, while APR paints the bigger picture: it reflects the total cost of your loan when lender fees, discount points, and closing costs are factored in. Two loans with the same interest rate can have very different APRs if one is loaded with extra fees.

This is why it’s so important to push beyond the headline rate. Some lenders may tempt you with a lower interest rate but bury thousands of dollars of origination or underwriting fees in the fine print. Others may show a slightly higher rate but lower closing costs, which could actually save you money if you don’t plan to keep the mortgage for decades.

A good question to ask a mortgage broker is: “Can you provide a side-by-side comparison of all my options with rate vs APR listed so I know which is truly more affordable?” You should also ask how long it takes to break even if you pay upfront fees for a lower rate, and whether your rate quote includes assumptions like escrow waivers or discount points. The answers to these lender questions help you compare apples to apples across lenders and avoid being misled by marketing tactics.

8. Should I buy down my rate by paying discount points?

Paying points to buy down your rate is common, but not always smart. Mortgage points, also called discount points, are upfront fees paid at closing in exchange for a lower interest rate. Each point generally costs about 1% of your total loan amount and may lower your rate by roughly 0.25%, though the exact impact varies by lender and market conditions.

The key question to ask a loan officer here is about your breakeven point: how long it will take for the monthly savings to outweigh the upfront cost. If you plan to stay in your home long term, points can save you significant money over time. But if you expect to refinance or sell within a few years, paying points might not pencil out.

This is one of the most important questions to ask a mortgage lender when choosing a lender: “How long do I need to keep this loan for points to make sense?” aka "What's my breakeven point for the savings to start outweighing the costs?" You should also ask whether there are alternative strategies, such as seller credits or temporary buydowns, that could reduce your payment without locking up cash at closing.

9. Can I Lock My Rate, and for How Long?

This is one of the most time-sensitive questions to ask a mortgage lender. A rate lock protects you from market fluctuations once you’re under contract, essentially guaranteeing your interest rate for a set period of time. Most rate locks last 30 to 60 days, though extended locks may be available for new construction or longer closings.

You should ask what happens if your closing is delayed and whether lock extensions come with additional costs. These extension fees can add up quickly, especially if construction timelines or seller delays push your closing date out.

Another critical lender question is whether your lock includes a float-down option. A float-down allows you to capture a lower rate if market rates improve after you’ve locked but before you close. Many lenders either don’t offer float-downs at all or charge extra for them, with restrictive rules around timing and eligibility.

At LendFriend, we offer a free float-down on many loan programs. That means if rates improve during your lock period, you’re not stuck watching from the sidelines, you can take advantage of the better pricing without restarting the process or paying additional fees. In volatile rate environments, this flexibility can materially lower your monthly payment or reduce closing costs.

For real estate agents, this is also one of the most important questions to ask a lender on behalf of a client. Knowing whether a lender offers a true float-down, and under what conditions, can be the difference between a smooth closing and a last-minute scramble if rates move unexpectedly.

10. Can I Buy Without My Spouse?

In community property states like Texas, this is a very common mortgage lender question. Even if your spouse isn’t on the loan, they may still need to sign certain closing documents, and some loan programs, most notably FHA, require a non-borrowing spouse’s credit to be reviewed.

Community property laws mean that debts incurred during marriage may still be considered in the debt-to-income calculation, even if only one spouse applies. In some cases, leaving a spouse off the loan can improve qualification. In others, it may not make a difference at all. Title ownership is separate from loan responsibility, which means both spouses typically still have ownership rights regardless of who is listed as a borrower.

This is one of those questions to ask a mortgage lender early, because the answer can affect documentation, underwriting timelines, and even loan eligibility depending on the program.

11. What Income Counts Toward My Loan Qualification?

Ask your loan officer upfront: “What income sources will you count?” This is one of the most essential questions to ask a loan officer when buying a house, especially if you’re self-employed, earn commissions, receive bonuses, or are compensated with equity.

Not all income is treated equally. Base salary is the simplest to qualify, but variable income, such as bonuses, commissions, overtime, or incentive pay, requires more scrutiny. In most cases, lenders want to see a documented history, typically 12 to 24 months, showing that this income is consistent and likely to continue. Guaranteed bonuses or contractually defined incentive pay may be easier to count, while discretionary or performance-based bonuses often require a longer track record.

This is where many borrowers get tripped up. A strong bonus year doesn’t automatically mean that income will count, and a lower bonus year doesn’t necessarily disqualify you either. Lenders usually average bonus income over time, and declines or volatility can impact how much of it is usable. Asking how your bonus income will be calculated, and whether it will be averaged, capped, or excluded, is critical before you start shopping.

Self-employed borrowers face a different challenge. Tax returns often don’t reflect true cash flow due to write-offs, which is why alternative documentation programs such as bank statement loans exist. These programs allow lenders to qualify borrowers based on actual deposits rather than taxable income.

High-net-worth borrowers and retirees may qualify using asset-based income strategies, while tech employees and crypto holders may be able to leverage RSUs or digital assets if structured correctly. Asking these mortgage loan questions early helps avoid surprises once underwriting begins and ensures your full earning power is reflected in your approval.

12. Should I get prequalifed or go through an entire preapproval process before going under contract?

This is one of the most important first time home buyer questions to ask a lender, and it’s also one of the most misunderstood. While the terms are often used interchangeably, prequalification and preapproval serve very different purposes, and choosing the wrong one at the wrong time can weaken your offer or slow you down when it matters most.

A prequalification is typically faster and lighter. It’s usually based on a soft credit pull and borrower‑provided information like stated income, assets, and estimated debts. Prequals are useful early in the process when you’re trying to understand a comfortable price range, explore loan options, or decide whether buying now makes sense at all. They’re a low‑commitment way to start the conversation, but they don’t carry much weight with sellers because nothing has been fully verified.

A preapproval, on the other hand, is a much stronger signal. It involves a hard credit pull, full documentation review (income, assets, employment), and in many cases an underwriter’s sign‑off. In competitive Texas markets, a preapproval can be the difference between your offer being taken seriously or passed over. Sellers know that a preapproved buyer has already cleared many of the hurdles that derail deals later.

This is why one of the smartest questions to ask a mortgage lender is not just which they offer, but when each one makes sense. Getting fully preapproved too early can create unnecessary pressure or lead to expired approvals, while relying on a prequal when you’re ready to write offers can put you at a disadvantage.

A good lender will help you time this correctly, starting with a prequalification to map out options, then upgrading to a preapproval when you’re close to making offers. Understanding this distinction before you start house hunting helps you move confidently, write stronger offers, and avoid scrambling once you’re under contract.

13. How Much Do I Need for a Down Payment?

This is one of the most common questions to ask mortgage lenders, but the answer isn’t one-size-fits-all. While conventional loans may allow as little as 3% down and FHA loans 3.5%, the right down payment depends on your overall financial picture.

Putting more down can reduce your monthly payment and eliminate mortgage insurance, but putting less down may allow you to preserve cash for emergencies, renovations, or investments. First-time buyers in Texas may also qualify for down payment assistance programs that help bridge the gap.

Asking your lender to walk through multiple scenarios is one of the smartest questions to ask when choosing a mortgage lender.

14. Who Will Service My Loan After Closing?

This is one of those questions for mortgage lenders that often gets overlooked. Many lenders and brokers do not service the loan after closing. Instead, servicing is transferred to a third-party company that handles payments, escrows, and customer service.

Asking this question upfront helps set expectations and avoids confusion when your first mortgage statement arrives from a company you’ve never heard of. A good lender will explain how servicing transfers work and who to contact if issues arise after closing.

Final Thoughts

Mortgages are complicated. But asking the right questions to ask a mortgage lender or mortgage broker, and having the right partner, vmakes the process smoother, smarter, and more affordable.

Whether you’re a first-time buyer compiling a list of what questions to ask a mortgage lender, a real estate agent thinking through questions to ask a lender for your clients, or a repeat buyer deciding what to ask when choosing a mortgage lender, the key is the same: be informed.

At LendFriend Mortgage, we believe educating the homebuyer is the key to a successful homebuying process, and we’re here to help you explore every possible path to get there.

Let’s talk about your goals and figure out the best way to get you home—wherever that home may be. Schedule a call with me today or get in touch with me by completing this quick form.