Taking out a mortgage is likely one of the biggest financial steps of your life. The application process involves sharing sensitive information about your finances. While mortgage rates and terms should factor into your decision, choosing a lender you trust is equally important.
To find the best lender for your purchase or refinance, contact several banks, brokers or mortgage companies and ask for quotes. Have a conversation with a loan officer at each one.
10 Questions to Ask a Mortgage Lender
The answers to these questions can help you determine which lenders operate in your comfort zone and best meet your expectations. Pay attention to how quickly they return your calls, texts or emails. Compare their answers to help make your choice.
Will You Provide a Loan Estimate or a Worksheet?
Find out if you’ll receive a formal loan estimate form, which discloses the loan’s rate and terms and provides certain consumer protections. Otherwise, you’ll get a worksheet or loan scenario, which doesn’t obligate them in the same way. Lenders are required by law to issue a loan estimate within three days if you apply for a mortgage, but many will give one to you beforehand if you ask. They should also tell you how long an estimate is valid, which is typically 10 business days.
[Read: Best Mortgage Lenders]
What Information Do You Need From Me?
Without certain information from you, lenders can’t provide meaningful mortgage quotes. They need an estimate of your credit score, what sort of property you want to finance and how you’ll use it (primary residence, vacation home or rental), and how much you have for a down payment. You’ll want to consider if you’re comfortable sharing the information the lender requests.
What’s Your Preapproval or Prequalification Process?
Lenders generally offer the opportunity to share some preliminary information and receive an estimate of how much they’re likely to lend to you. This is called mortgage prequalification, and the process can vary widely among lenders. Some issue a letter based on your answers only while others perform a soft check on your credit first.
Mortgage preapproval generally involves completing an application, authorizing a credit check, and submitting income and asset documentation. However, not all lenders use the terms prequalification and preapproval the same way. It’s smart to ask what they offer and what they require.
You’ll want to know if they charge an application fee at this stage. Ask if they will check your credit score and how soon you’ll get an answer.
What Loans Do You Offer?
A lender that offers a range of loan programs might be better able to find a loan that’s well-suited to your circumstances. For instance, if you’re a first-time homebuyer, you might be better off with a lender that offers high loan-to-value products and first-time buyer programs, including closing cost and/or down payment assistance.
More loan options also means greater flexibility. Christy Bunce, president at New American Funding, recommends looking for lenders that offer renovation loans so you aren’t restricted to shopping for homes in pristine condition.
“You want to know that your lender has the ability to do all sorts of loans like non-QM loans, renovation loans, one-time close construction and bridge loans along with the regular full suite of products to ensure that the buyer has every advantage out there to get the home they want,” Bunce says.
[READ: Compare Current Mortgage Rates]
Which Loan Do You Recommend for Me and Why?
Lenders should be able to explain why they recommend one mortgage product over another. If they can’t walk you through their reasoning, it could be that they haven’t given the question enough thought or they don’t have your best interests in mind.
Jeffrey M. Ruben, president of WFSF home lending, recommends looking for a lender who asks lots of questions to understand your situation. A good lender should discuss multiple loan products and explain the pros and cons of each.
“If you are on the phone with a lender and they’re really just going down one path and one path only, you’re probably not working with the right lender because there are options and you should try to figure out which one’s best for you,” Ruben says.
How Quickly Can I Close?
Ask how long it usually takes for the lender to close on a home purchase or refinance. This gives you an idea of how responsive they are and whether they can work with your timeline.
If you’re already under contract, let the lender know. Make sure your close of escrow date can be met.
“If you ask a question or explain to the lender that you’re looking to close in 30 days and there’s a pause or a concern, that’s a warning sign that maybe you’re not with the right lender, that they won’t be able to move within the time frame that you need them to,” Ruben says.
How Do I Keep in Contact?
Choose a lending pro who’s willing to communicate using your preferred method, whether that’s email, text, video calls, phone calls or in-person meetings. If you want to track your application online, make sure that’s offered and that the website is user-friendly.
If you want to stay in touch by phone, look for a direct office or mobile number for your loan officer so you aren’t stuck calling the company’s 800 number. Try contacting the lender with a question to see if they respond promptly.
Even if you prefer online interaction, Ruben recommends checking that a lender is also responsive by phone in case you need to have a live conversation later.
“I caution borrowers that we know the fully online experience sounds great and it’s very slick, but at some point they’re likely wanting to talk to someone,” Ruben says.
How Much of the Mortgage Process Is Handled In-House?
Some lenders take care of underwriting in-house, while others contract with outside firms. The application process might be more streamlined if the lender isn’t waiting for answers from another company.
“If they’re dealing with an in-house direct lender, then they’re underwriting their own files, they’re processing their own files, they’re drawing docs, they’re funding. So there’s a lot more control there,” Bunce says.
And if maintaining a long-term relationship with the same lender is important to you, you might want to ask if the lender services its own loans.
[See: Best Low- and No-Down-Payment Mortgages]
Are You Involved in the Local Community?
Find out how long the lender has been in business. See if it has local management or ties to community organizations. It might be safer to choose a lender with many years of experience and a strong reputation in your community than one with a brief track record.
Do You Understand My Cultural Background?
You may want to consider if a lender is inclusive and sensitive to cultural concerns, especially if you have any unique needs that not all lenders understand.
Bunce says it can be helpful for lenders to reflect the diversity of the communities they work with because this can prevent roadblocks in the loan process.
“We think that that really does help with the loan officer-customer relationship as well, that they understand what they’re going through,” she says.
For example, if receiving down payment gift funds from extended family members is standard in your culture, you might prefer a loan officer who’s used to that practice rather than one who will question it.
Not all mortgage lenders are created equal, and some look better on paper than they are in real life. Getting personal with a few candidates can help you find a lender that will make the process go more smoothly for you.
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How to Find the Best Mortgage Lender: 10 Questions You Should Be Asking originally appeared on usnews.com
Update 07/31/25: This story was previously published at an earlier date and has been updated with new information.
