Questions to ask a mortgage lender before applying

Whether you're a first-time homebuyer or a seasoned homeowner, it's important to get a good feel for a lender to determine whether it's the right fit for you. These 10 questions can give you a sense of what the lender offers, what your loan terms might look like, and how the mortgage process will go.

What questions should you ask a mortgage lender before applying?

Reach out to at least three lenders when considering a home loan because each lender offers a different set of loan programs, eligibility criteria, interest rates, fees, and processes.

You can get answers for many of these questions before you submit any information. For others, particularly estimated terms if you're approved, you'll need to apply for loan pre-approval.

What loan types do you offer?

Not all lenders offer every type of mortgage, but ask about both traditional and government-backed loans.

What credit score do I need to qualify?

Depending on the loan program, minimum credit score requirements can vary — and they aren't always advertised.

A credit score of 620 or higher often gets you the lowest rates on conventional loans, with lower scores eligible for FHA, USDA and VA loans, depending on the lender and your credit history.

Individual lenders set their own standards, so it's a good idea to ask about thresholds specific to your loan program for eligibility.

What will my interest rate be?

Lenders can provide a general idea of interest rates they offer without getting any of your information. To get more specific, you'll need to go through the pre-approval process.

Pre-approval involves a review of your credit history and financial situation, so prepare to share documents showing your income, assets, and other debts. If you pass the check, you'll get an estimate of how much you can borrow, the rate you'll pay, and the mortgage loan term you’re eligible for.

What are the total closing costs and fees?

Expect to pay between 2% and 6% of the loan amount in closing costs, which can be significant in dollar terms. You won't get a true estimate of your closing costs until you submit an official application. Even then, they aren't set in stone until shortly before you close. Still, it’s worth asking the lender for a general sense of what to expect.

Closings are moving faster. Purchase loans took about 37 days to close in March 2026 — the fastest pace since ICE Mortgage Technology began tracking in 2019.

How much do I need for a down payment?

Each loan program comes with a general minimum down payment requirement:

Some lenders require higher minimums, especially if you have a lower credit score than other applicants or have high debt compared to your income. Pre-approval will usually tell you what a lender requires.

Do you offer rate locks, and for how long?

After you’re officially approved for a mortgage, lenders typically lock in your interest rate for 30, 45, or 60 days, or sometimes even longer. This gives you time to finalize a purchase agreement with a seller and close on the loan.

If you're expecting to move quickly, a shorter rate lock period may be enough. But if you're concerned about delays, you might want a longer period.

What documents will I need to provide?

The documents you need don’t vary much from one lender to the next, but it's still a good idea to get a full list ahead of time.

How long does the approval process take?

The average purchase loan closed in roughly 37 days in March 2026, according to ICE Mortgage Technology, which is the fastest pace since the platform started tracking closing times in 2019.

Lenders that lean heavily on digital tools and processes typically close faster. Ask the lenders you're considering what you can expect, especially if you're already in talks with a seller.

Are there prepayment penalties?

A small number of conventional mortgages carry a prepayment penalty if you pay off your loan within the first three years, but federal rules bar penalties after that. Depending on the terms, the penalty can be triggered by refinancing your loan or selling your home.

If a lender offers you a loan with a prepayment penalty, they’re required to offer you a comparable loan without one so you can compare your options, especially if you're not sure you'll stay in your home for very long.

Get quotes from at least three lenders. Rates, fees, and eligibility rules vary, sometimes a lot for the same borrower. You can't tell whether an offer is good without something to compare it to.

What happens if my application is denied?

Lenders are required under the Fair Credit Reporting Act to provide an adverse action notice if they deny your application due to something related to your credit. Even if that's not the case, you can request an explanation.

After that, you can ask about what you need to do before reapplying, or you can look to other lenders with less stringent requirements.

Run the numbers >> See what you can afford based on your income and debts with Kikoff's affordability calculator

How to prepare before talking to a lender

Before you even start the mortgage process, take steps to prepare yourself and your credit history for scrutiny.

Check your credit reports for errors

You can get free weekly access to your credit reports at AnnualCreditReport.com. As you review them, look for accounts you don't recognize, balances that look wrong, and on-time payments marked late.

Know your credit score range

Checking your credit score can give you an idea of your approval odds, as well as whether you can qualify for favorable terms. Even if your score meets the minimum requirement for a home loan, it’s worth knowing what your score is.

Build credit history if yours is thin

Even if you have a credit score of 6420 or higher, a thin credit profile gives lenders less to work with, which can cause them to view you as a riskier borrower.

Read more >> How to Make an Offer on a House

Bottom line

A mortgage loan is a serious financial commitment, so do your due diligence when finding a lender. Ask these questions of at least three of them to compare answers and learn where the savings are. And if the numbers still feel hard to weigh, a financial advisor or nonprofit credit counselor can help you sort through them for your situation.

Your credit often determines what those answers look like. Kikoff’s Credit Account is a free tool that reports your on-time payments to the major credit bureaus, helping you to build the credit history lenders look for. No hard credit check required.