7 Questions to Ask a Mortgage Lender to Make Sure You're Not Getting Screwed

Dusty Rhodes • January 27, 2020

Let’s be honest. Unless you eat, sleep and breathe financial stuff, home buying is complicated. That’s especially true of the financing part, where a lot of folks feel totally overwhelmed by the complexity of the lending industry and its bewildering jargon. 


But here’s the thing you need to know. Anytime you engage a loan specialist, you’re entering a competition. They’re trying to get the most money they can for themselves and their employer – and the less you know going into the conversation, the more successful they’ll be in that pursuit. If, on the other hand, you go in knowing what to ask, you’re tilting the balance of power back in your favor.  


In terms of knowing what to questions to throw the loan officer’s way, I thought I’d reach out to Colin Robertson, founder of the blog The Truth About Mortgage and a former lender himself. Here’s what he said should be on everyone’s list. 


7 Mortgage Questions to Ask a Lender


1. “What will the total housing payment be?”


It’s easy to focus on what your actual mortgage payment will be each month. But keep in mind that you’ll also have to pony up for things like property taxes, homeowner’s insurance, and HOA fees. If you put down less than 20 percent on the home, you may also have to pay mortgage insurance premiums, which protect the lender against the risk that you’ll default on the loan. These all add up. 


“Know the full amount you’ll need to pay each month to ensure the home will be affordable and not get in the way of your other expenses and savings goals,” says Robertson. 


2. “What’s my rate and how long is it good for?”


Snagging a low interest mortgage rate helps reduce your monthly payment, giving you a little extra wiggle room in your budget. That means shopping around for lenders – and negotiating.


But Robertson says you should also ask how long the rate is good for (the lock period) and ensure it’s actually locked once you’re happy with the quote you receive. That way it won’t change, even if rates rise in the meantime.


3. “Do you charge any lender fees or points?”


Expect to pay a host of charges when you take out a mortgage, including title fees, loan processing fees, underwriting fees, and loan origination fees. Some of these can be whittled down with a little negotiation. The loan origination fee, for example, is usually a percentage of the home sale price. For more expensive homes, the lender may be willing to take a smaller slice of the pie, knowing that they’ll still make a respectable profit. 


By law, the lender has to provide the “APR,” a version of the interest rate that includes some or all of these fees. Be sure to ask what’s included in their figure. That way, you can compare the APR for different loan options, accounting for any fees that are not rolled into it. 


Also check to see whether the lender is charging you any prepaid interest, also known as “points.” Each point is equal to one percent of the home price. So paying two points on a $300,000 home means you have to fork over $6,000 at closing. Paying points will typically lower your interest rate, which is one reason it may look like you’re getting a great deal. Unless you take them into consideration, you’re not really doing an apples-to-apples comparison of different lenders.


Keep in mind that if you plan to stay in the home a long time, paying finance charges on the front-end may not be a bad idea. Otherwise, it’s probably better to steer clear. 


4. “What type of mortgage is best for me?”


While most lenders will assume you want a 30-year fixed, a good one should take the time to go over a number of different loan options. 


“It might turn out that a cheaper 5-year ARM is a better alternative if you don’t plan on keeping the home for very long, or if you expect to refinance in the near future once your financial situation improves,” says Robertson. “Or that a 15-year fixed is totally manageable and a better value for you as a homeowner.”


The bottom line: there’s no one-size-fits-all solution to mortgages. Tell the lender about your plans and have them give you the pros and cons of different products.  


5. “How much do I need to put down?”


A good lender will be able to provide with a variety of down payment options, depending on how much cash you have to put down. Before picking a mortgage, ask exactly how much you’ll need to pay upfront, including closing costs like appraisal and title fees, property taxes and points, if there are any.


Are you required to pay mortgage insurance based on your low down payment? If so, make sure you know how much that will tack on to your monthly bill – and potentially your closing costs, too. 


6. “Why do mortgages get declined?”


The lender offers you a great rate with a down payment you can actually afford. Everything’s looking great. The last thing you want is to find out that the bank or mortgage company decided to back away from your loan at the last minute. And yet it happens.


Robertson recommends asking why other loans tend to fail in order to avoid the same misfortune. “They might tell you because of credit, or a new job, or a lack of seasoned assets,” he says. “Knowing why mortgages don’t make it to the finish line could be key to getting yours to the funding table.”


7. “How long will the process take?”


When it comes to home buying, timing is of the essence. You’ll want to ensure that the lender you choose can not only close your loan, but do so by the closing date specified in the purchase agreement.


That might mean seeking out a mortgage originator with a record of efficiency. “Some lenders specialize in refinances, and may not be the best fit for a time-sensitive home purchase,” says Robertson. 


As with any huge purchase, you definitely want to shop around. Bounce your list of questions off multiple lenders so you can figure out who’s going to give you the best overall value, not just the lowest advertised rate. Considering how much money and heartache you could be saving, you’ll be glad you did a little homework going into the process.



Source: Yahoo Lifestyle


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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How To Make Sure Your Sale Crosses the Finish Line

By Dusty Rhodes • November 10, 2025
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By Dusty Rhodes • November 3, 2025
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By Dusty Rhodes • October 13, 2025
From the first coat of paint you used to freshen up your house’s trim to the stress of wrangling your way to a deal, you’ve been through a lot in that place. Now you’ve made it to the final hurdle of selling a home: moving out! Don’t worry, this is the easy part… but you want to do it right. Here’s how to get through the last leg of your journey without any bumps along the way. How to move out on time Once the paperwork is signed at closing, the buyers will officially own the house—and you won’t. That means that, technically, if you or your stuff is still there after the close, “the buyer could evict you,” says Joshua Jarvis , founder of Jarvis Team Realty in Duluth, GA. So make sure to have your exit strategy in place! Still, most buyers will understand if you need a bit more time and have a legitimate reason—like if you can’t move until the weekend due to your work schedule. Just be sure to discuss these issues as soon as possible before the close, so your buyers can plan accordingly. Decide what to leave behind To make sure you’re leaving behind everything the buyer wanted—and that you agreed to—double-check the closing documents . There should be an itemized list of what comes with the house . And even if the buyers didn’t formally request them, it’s just good form to leave certain types of things behind. Such as? “Generally speaking, you should leave anything that’s bolted to the wall,” says Jarvis. “Some homeowners want to take their fans and blinds to the next home, but generally if it’s screwed in, it stays.” Also, if you and the buyers agreed to transfer any services—such as alarm monitoring or pest control —be sure to set that up before you go. Leave the buyers a detailed note in the house, or ask your agent to get in touch with theirs to make sure the transfer goes smoothly. If you do inadvertently take an item that the buyers had requested, they have the right to ask for it back—and they could potentially sue you in civil court for the cost of a replacement. So, when in doubt, feel free to check with the buyers before you grab and go. But don’t leave anything else behind Just as important as what you leave behind is what you don’t. Your buyers have a right to move into a home that’s been cleared of furniture and other movable items they didn’t expressly request. “Some folks leave all kinds of unwanted clothes, furniture, paint cans, and other items, thinking they are helping the buyers,” Jarvis says. If you truly think your buyers might love to have your old planting pots or kiddie equipment, go ahead and ask—but please don’t assume they’ll welcome your leftovers. Even if you’re careful, you might forget something—at which point the buyers may contact their agent to get it back to you, but they also have the legal right to just keep or get rid of it. So double-check areas (e.g., the attic, garage, basement, storage shed, kitchen, and bathroom drawers) where people commonly overlook items. Clean up It’s common courtesy to leave the place not only clear of your possessions but also clean. However, that doesn’t mean you have to leave it immaculate. “Generally, you shouldn’t have to pay to have it deep cleaned,” Jarvis says. In most cases, a simple broom-clean will do. That means wiping down the countertops, cleaning out drawers, sweeping or vacuuming all the floors, and giving the bathroom and kitchen appliances a once-over so the new owners aren’t grossed out when they arrive. Are you forgetting anything? Before you close the door for the last time, run through a quick checklist. Did you eyeball every room for stray items? Have you forwarded your mail and turned off the utilities? Is the water running in the jacuzzi? We all get in a bit of a rush even in the best planned moves, but you won’t be able to get back in, so it can’t hurt to do a final run-through before you move out. Once you’re ready, it’s time to leave. You can drop a line to your real estate agent to let them know you’re out, although it’s usually a courtesy more than a necessity. If you’re feeling truly gracious, feel free to leave a note, card, or bottle of bubbly congratulating the people who’ve inherited your former home. Given all the fond memories you’ve built between those walls, wouldn’t it be nice to start the home’s new owners off on the right foot? And buy yourself some Champagne, too. Make it the good stuff—you’ve earned it.