Handout: Top Questions to Ask a Mortgage Lender

When it comes to buying a home, it’s essential that buyers choose the right loan and lender. Many shoppers will go with a lender that you recommend. But if you want your clients to work with a lender experienced in loans for their situation — and get the best rate available — it's never a bad idea to encourage them to shop around.

Selecting a mortgage lender means comparing official loan estimates, but it can also be a personal decision, since buyers may share intimate financial details of their lives in order to get optimal lending terms. Your potential buyers should consider interviewing contending lenders to see if their interests and values align.

Whether it’s a mortgage broker or a lender, most buyers aren’t exactly sure what to ask, so we’ve compiled a list of questions to help along the way.

The checklist is available for you to share with your potential clients two ways:

1. Share this blog post: “Top Questions to Ask Your Mortgage Lender.”
2. Download the checklist and share it with your potential clients. You can customize it by adding your contact information, headshot and company logo.

Definitions

A mortgage lender is a licensed professional who gives you the money to fund your loan, either directly or through a third party. Lenders include institutions like banks, credit unions, and public or private finance companies.  

A mortgage broker is like a matchmaking service: They review your personal financial information and try to match you with a lender who will give you the best rate and terms.

Common questions for a lender

• Are you licensed by the state?
• How long have you been working as a mortgage professional?
• Whom do you represent — a bank, broker, finance company?
• What types of loans do you offer?
• What are the loan application and approval process fees?
• Are you going to hold this loan or sell it?
• Do you have experience with borrowers in a similar situation as me?
• How do you keep my personal information secure?
• Will you sell my information?
• How can I reach someone after hours?

Additional common questions for a mortgage broker

• How do you get paid?
• How much will you make on this loan?
• Who are the top lenders that purchase loan applications from you?

In addition to asking the right questions, there are some free Zillow tools that you may want to share with your clients to help fast-track decisions they’ll need to make. They include tools to see current rates, to find a mortgage lender and to calculate the cost of a mortgage.

Common questions about loan rates

• What interest rate are you offering, and how did you arrive at it?
• How do I know this is the best rate you can give me?
• How will the rate change over the life of the loan?
• How long will you lock in my rate? What does the lock cost me?
• What is the highest my adjustable rate mortgage (ARM) can go, and when?
• Can you explain an annual percentage rate (APR)? What is the rate for this loan?

Common questions about loan costs

• Will you give me a fee sheet or an estimate of funds needed to close?
• Do I need to pay private mortgage insurance (PMI)?
• What am I paying in points?
• What are my monthly payments?
• Are there any prepayment penalties on this loan?
• Here’s my timeline. Are you certain you can get this done in time for my closing?

For more mortgage resources, visit Zillow’s home financing center at zillow.com/home-loans.

Disclaimer: The content in this article include industry best practices, which were sourced from Zillow data and interviews with our Zillow Premier Agent Advisory Board, unless noted otherwise. Any scripts provided are just meant to act as examples and are not required.  Nothing in this presentation is intended to be legal advice. For specific questions about any duties or obligations arising out of a real estate transaction, check your local and state licensing laws and regulations, contact your broker, or an attorney.