5 Questions to Ask Your Lender Before You Start Googling Mortgage Advice

Heather Dean — Tue, 25 Mar 2025 14:54:52 +0000

There’s no shortage of mortgage advice online—but before you fall down a rabbit hole of conflicting opinions and outdated calculators, it’s smart to go straight to the source: your lender.

Whether you’re a first-time buyer or re-entering the market, the difference between working with an okay lender and a great one comes down to transparency. A great lender won’t just quote you a rate—they’ll walk you through the real costs of homeownership so you can make informed decisions from day one.

Before you commit to anything, make sure you get clear, personalized answers to these five crucial questions:

1. What is my total cash to close, including down payment and all closing costs?

It’s easy to focus on the down payment, but that’s only part of the picture. Your total cash to close includes lender fees, title charges, prepaid taxes and insurance, and more. Knowing this number upfront can help you avoid surprises at the closing table.

2. What loan programs do I qualify for?

Your lender should walk you through all your options—from conventional loans to FHA, VA, USDA, and any down payment assistance programs you may be eligible for. The right loan product can significantly impact your monthly payment and upfront costs.

3. What will my interest rate be, and when can I lock it in?

Rates fluctuate daily. Ask your lender not only what your current rate would be, but also when you’re allowed (or required) to lock it. A locked rate protects you from increases while you finalize your home purchase.

4. Are there any prepayment penalties if I decide to pay off my mortgage early?

Most loans don’t carry prepayment penalties anymore, but it’s worth confirming. If you plan to pay extra toward your principal or sell your home in a few years, you’ll want to make sure there are no financial penalties.

5. What’s my estimated monthly payment, including taxes, insurance, and PMI?

It’s not just about principal and interest. Make sure your lender provides a full picture of your monthly payment—including property taxes, homeowners insurance, and private mortgage insurance (if applicable). This helps you budget realistically and confidently.

A knowledgeable lender is one of your most important partners in the home buying journey. When you get answers to these questions, you’ll understand not just the purchase price—but the full cost of owning your new home.

At Sage and Cedar Real Estate, we help buyers navigate the process with confidence—and that starts with connecting you to trustworthy, experienced lenders who speak your language.

Ready to take the first step? Connect with us here and we’ll help you get started on the right foot.