Choosing a lender is one of the biggest money decisions in a home purchase, and it is easy to compare the wrong things. A lower rate on paper can come with higher fees, and a quick quote can leave out costs. These questions help you compare offers fairly, and a good lender will be glad to answer every one.
About the loan
- Which loan programs fit my situation: conventional, FHA, VA, jumbo, or a down payment assistance program?
- What is the interest rate, and what is the APR? How are they different on this offer?
- Is the rate locked? For how many days, and what does an extension cost?
- Is the rate fixed or adjustable? If adjustable, how and when can it change?
- Would paying points lower my rate? What does one point cost and how much does it save each month?
- Is there a prepayment penalty?
About the cost
- What are all of your fees: origination, underwriting, processing, appraisal and credit report? Which can change before closing?
- How much cash will I need to close, including the down payment, prepaid taxes and insurance, and reserves?
- What will my total monthly payment be with property tax, homeowners insurance, mortgage insurance and any HOA dues?
- When does mortgage insurance end, and how can I remove it?
About the process
- How long does it usually take from application to closing, and do you underwrite in-house?
- Who is my day-to-day contact, and how quickly do they reply?
- Which documents do you need, and by when?
- Can you get me a pre-approval letter that sellers take seriously, and can it be updated quickly for a new home?
Comparing offers
Under federal rules, a lender gives you a standard three-page Loan Estimate shortly after you apply (the CFPB says within three business days), and the form is the same for every lender so you can line them up side by side. The Consumer Financial Protection Bureau explains how to read it and how shopping around works:CFPB: Owning a Home and what a Loan Estimate is.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Point Mortgage Corporation (NMLS #231073), at (619) 475-4095. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
More tools
- Mortgage payment calculator — see how rate and down payment change the payment
- Down payment savings planner — how long until you can buy
- Buyer closing cost estimator — what to expect on top of the down payment
General information, not legal, tax or lending advice. Programs, rules and rates change, so confirm current details with the official source, your lender and your advisors.
More guides
- HOA Dues and Mello-Roos Taxes: What They Are and What to Ask — Two costs that sit outside the mortgage and change what a home really costs each month, with the documents to request before you buy.
- Moving In: Who to Call and What to Update — A checklist of the official places to update your address, start your power and gas, and find your water, trash and school information.
- Who Keeps the House? The Options in a Divorce — The main ways couples handle the family home in a California divorce, with the money questions that go with each.
- Selling a Home During a Divorce in California: Timing and What to Know — How the waiting period and the automatic orders affect a sale, and the steps for a smooth sale when both spouses agree.