What to Ask a Loan Officer Before You Choose One

What to Ask a Loan Officer Before You Choose One

If you're preparing to buy your first home, you've probably been told to shop around for a mortgage lender. You might’ve even spoken to a few already, and realized many of them sound the same. Rates are similar, the process feels vague, and no one seems to stand out.

So how do you decide who to work with? What should you actually be asking?

Here’s what to know before choosing a loan officer, what questions to ask, and why it matters more than you think.

First: Do Rates Really Vary?

Yes, more than most buyers realize.

While mortgage rates are influenced by the broader economy, they’re not all set by the government. Lenders price their loans based on the secondary bond market, their internal costs, and their business goals. That means one lender might offer you a better rate, lower fees, or more flexible terms than another, even if your credit score and income are the same.

Your credit score, down payment, and loan type all affect what you’re offered. And yes, some lenders do have room to negotiate, especially when it comes to closing costs and interest rate buy-downs.

What to Ask a Loan Officer

Here’s a list of direct, useful questions you can ask to spot the best loan officers from the rest:

What are your loan fees?

Ask about origination fees, underwriting fees, and application fees. These can vary widely by lender and affect how much you're really paying.

  • Origination fee – A lender fee for processing your loan, often 0.5% to 1% of the loan amount
  • Underwriting fee – Covers the cost of reviewing your financials and deciding if you qualify
  • Application fee – A fee just to apply, sometimes non-refundable even if you don’t move forward

Don’t just compare interest rates. Compare the full cost of the loan, including these fees.

Are you offering any rate buy-downs (discount points)?

Some lenders let you pay upfront to get a lower interest rate. This is called a buy-down and typically costs 1–3% of the loan amount.

Ask:

  • How much will it cost to lower my rate?
  • How long will it take to break even?
  • Does it make sense for how long I plan to stay in the home?

Do you work weekends or after hours?

When you're house hunting, you'll need quick answers, especially on evenings and weekends when most offers are made. Ask if your loan officer is:

  • Available outside of 9–5
  • Able to quickly send revised pre-approval letters
  • Responsive when you’re making a competitive offer

How quickly can you close?

In a competitive market, being able to close fast matters. A lender who can close in 14–21 days can help your offer stand out. Ask what their average closing timeline looks like.

Is underwriting and closing handled in-house?

“In-house” means the lender has its own team reviewing your file and managing the closing process. This is a big advantage:

  • Fewer delays
  • Better communication
  • More control over your file
  • Quicker resolution if issues come up

Lenders who outsource to third-party companies often deal with backlogs and miscommunication that slow things down.

Can you walk me through the full monthly payment?

It’s not just about the loan amount. Your full monthly mortgage payment typically includes:

  • Principal – What you’re paying toward the loan
  • Interest – The cost of borrowing
  • Taxes – Property taxes, paid monthly into an escrow account
  • Insurance – Homeowners insurance (required by most lenders)
  • Mortgage Insurance – Added if your down payment is under 20%

Ask for a breakdown to make sure it fits your budget. Just because you're approved for a number doesn’t mean it's a smart monthly payment for your lifestyle.

Do I qualify as a first-time buyer?

You’re considered a first-time homebuyer if you haven’t owned a home in the last three years. That opens the door to:

  • Down payment assistance
  • Special loan programs
  • Potentially better terms

Ask what first-time buyer options they offer and whether you qualify.

Are down payment assistance programs available?

Some lenders participate in state or local programs that offer:

  • Help with your down payment
  • Closing cost support
  • Forgivable loans or grants

If you want to minimize upfront costs, this is worth exploring.

It’s Not Just About the Rate

Some loan officers treat every client the same. Others take the time to understand your goals, explain your options, and actually make the process easier, not more stressful.

Beyond interest rate and fees, consider:

  • How clearly they communicate
  • How quickly they respond
  • How well they explain the numbers
  • Whether they help you plan beyond just closing day

Looking for Someone You Can Trust?

We highly recommend Joe Tishkoff, Mortgage Loan Advisor with PRMG and one of our most experienced lending partners. With over 40 years in the industry, Joe helps buyers not only close on homes, but also plan for long-term financial growth.

He’s responsive, transparent, and dedicated to your success, during the home buying process and beyond. Joe also donates 10% of his gross profits to PRMG Cares, a certified nonprofit supporting local communities.

Buying your first home? Let us connect you with Joe. You deserve more than just a mortgage, you deserve a loan officer who helps you win.

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