5 Essential Questions to Ask Your Mortgage Lender in Today’s Real Estate Market
Hey, it’s Kristina!
Unless you’ve got $500K lying around, chances are you’ll be working with a mortgage lender when buying a home.
Your lender will review your finances, credit history, and spending habits—but this process isn’t just about them asking you questions.
In today’s real estate market, you need to ask the right questions too.
Here are 5 essential questions to ask your lender before locking in a mortgage.
1️⃣ What Will Impact My Monthly Mortgage Payment?
Your monthly mortgage payment is made up of four key parts:
✔️ Principal – Pays down your loan balance.
✔️ Interest – The cost of borrowing money.
✔️ Taxes – Property taxes collected by the local government.
✔️ Insurance – Homeowners insurance to protect your property.
💡 Example Breakdown:
📍 Buying Price: $398,000
📍 Total Monthly Payment: $3,379.61
✔️ Principal & Interest: $2,395.25
✔️ Property Taxes: $596.67
✔️ Homeowners Insurance: $126.32
✔️ PMI: $227.37
✔️ HOA Fees: $34
💡 What you should ask your lender:
❓ How will property taxes impact my mortgage over time?
❓ Can my interest rate change, and if so, how will it affect my payments?
❓ How does my loan type impact my long-term costs?
2️⃣ What Will This Interest Rate Do to My Monthly Payment?
Interest rates can make or break affordability. Even a 0.5% difference in interest rates can impact your monthly payment by hundreds of dollars.
Your lender will take into account:
✔️ Your debt-to-income ratio
✔️ Your salary & job stability
✔️ Your credit score
✔️ Your down payment amount
💡 Before committing, ask:
❓ What rate do I qualify for today?
❓ How would a rate increase affect my payment?
❓ What can I do to qualify for a lower rate?
3️⃣ How Will Property Taxes Impact My Mortgage?
Property taxes are a major expense—and they vary based on location, home size, and market value.
Your lender will analyze:
✔️ The home’s location
✔️ Current & past tax assessments
✔️ Market value trends
💡 Pro Tip: If the previous owner was a senior or veteran, their property tax rate may have been much lower than what you’ll actually pay.
💡 Ask your lender:
❓ What will my actual property tax rate be?
❓ How much could property taxes increase over time?
❓ Can I qualify for any tax exemptions?
4️⃣ Do You Offer a Free Refinance Period?
Refinancing allows you to lower your interest rate or change your loan terms—but it usually comes with fees.
💰 Typical Refinance Costs (2-6% of Loan Balance):
✔️ Application fee
✔️ Appraisal fee
✔️ Attorney fees
✔️ Title search & insurance
💡 Some lenders offer a FREE refinance period—meaning you can refinance later without paying hefty fees.
💡 Ask your lender:
❓ Do you offer a free refinance option?
❓ What fees are associated with refinancing?
❓ When would it make sense to refinance?
5️⃣ What Are My Options for a Rate Buydown?
With interest rates higher than they’ve been in years, many buyers are using buydowns to lower their rate.
How a Buydown Works:
📌 You pay discount points upfront to get a lower interest rate.
📌 The seller can also cover the buydown as part of the negotiation.
📌 Different buydown options exist: 1-0, 2-1, and 3-2-1 buydowns.
💡 Example:
📍 Loan Amount: $400,000
📍 Standard Rate: 4%
📍 Buydown Rate: 3.75%
📍 Cost: $4,000 upfront
💡 This strategy can save you money—especially in today’s market.
💡 Ask your lender:
❓ What buydown options do you offer?
❓ Can the seller cover a buydown?
❓ How long will it take for the savings to outweigh the upfront cost?
Final Thoughts: Be Proactive With Your Lender
The best homebuyers ask questions—they don’t just take the first loan offer and run with it.
💡 Here’s how to prepare:
✔️ Research your lender’s programs & offers.
✔️ Ask about potential risks, fees, and long-term costs.
✔️ Make sure your loan is aligned with your financial goals.
By having these five conversations with your lender, you’ll be in a much stronger position when buying a home.
What’s Next?
Still feeling a little unsure or want someone to walk you through all of this? That’s exactly why I created Home School—a step-by-step course and community for first-time homebuyers who want to make smart, strategic moves.
Inside, you’ll get:
💡 Lessons like “Lender Interview Guide”, “Running the Numbers”, and “Communicating with Your Realtor”
📄 Tools to help you budget, negotiate, and understand financing
💬 A private chat space to ask questions and get real support from me and other buyers who’ve been there
Whether you’re just starting or already pre-approved, Home School meets you where you are—and helps you move forward with confidence.
You don’t have to figure this out alone. Let’s get you into your first home, the smart way.
Let’s Connect!
💬 Have a question? DM me on Instagram—I love talking real estate!
Final Thought
A home is one of the biggest financial decisions you’ll ever make. Don’t just accept a mortgage—understand it.
You got this.