Buying a house is one of the biggest decisions an individual can make today. You may have questions or concerns for your mortgage lender.

Whereas most people might not be able to pay it off with cash, a home mortgage is always there as an option to help you make a payment plan for your home.


If you plan on getting a mortgage, consider asking your lender these questions. Keep in mind that knowing the right questions to ask will help you save money when buying that home.

mortgage lender

Can I Afford This House?

Before anything else, you need to be true to yourself and ask how much mortgage you can handle. First, meet mortgage lenders before you even go to real estate agents. If you pre-qualify for a mortgage, it means you'll have an idea of exactly how much you will be able to borrow. This also helps you to get prepared as you meet the sellers.


Think about how much in monthly payments you make; will your budget be able to handle an extra monthly payment? Always follow the rule of thumb: when it comes to paying your mortgage, spend 25 percent or less of your income.

Which Mortgage Should I Go For?

This is another crucial question to ask your mortgage lender. There are two types of mortgages: variable and fixed rate. Fixed-rate mortgages come with the same interest rate - usually, 15, 30, and even 40, whereas a variable-rate typically starts low and rises as time goes by.

Carefully understand everything that goes into this kind of loan, and depending on your income, ask your lender which one best suits you.


What Type of Loan Is Suitable for Me?

Home loans have two categories - conventional and government loans. The latter include VA loans and Federal Housing Authority loans. However, the government does not support traditional loans. Most of these loans are easy to get because they are designed to make homeownership more accessible. However, not everyone can get VA home loans, unless you are a civil servant or a retired civil member.

Are You Dealing with a Direct Lender or Mortgage Broker?

This is another crucial question you shouldn’t fail to ask your lender. Your mortgage broker should be able to put your application together and take it to different lenders. If you are dealing with a direct lender, they will process the application themselves, though some sell your loan on the secondary market when it's closed. To avoid any misinterpretations, ask your mortgage broker all these questions.

What Is in My Monthly Payment?

If you are a first-time buyer, it’s essential to know how much you will be paying monthly. Most monthly mortgage payments include interest plus the loan’s principle. In most cases, you will pay interest at first and principal plus interest as time goes by. You will still pay the same amount, though.


These are some of the questions you should ask your mortgage lender, but do not just take my word for it. You can also inquire if you will pay for the private mortgage insurance, or even whether you can get the loan without depositing any down payment. Also, find out how much you have to pay at closing.