What Should You Ask Lenders to Find Your Ideal Mortgage?

By Jason Baker

Jason Baker is the leading listing agent in the entire regional mls for residential and or total units sold, 8 years running. He is a tireless worker, and surrounds himself with the best admin and sales team in Montana...and the results speak for themselves.

Buying a home is exciting, but choosing the right mortgage can be tricky. Interest rates, fees, and loan terms all affect your monthly payments and long-term finances.

I recently worked with a couple buying their first home. They visited three lenders: one offered a very low rate but high fees, and another had higher rates but lower costs. They didn’t know which mortgage was the best fit.

Mortgages can feel complicated, but asking the right questions makes it easier to find a mortgage that fits your budget and long-term goals.

1. What’s the interest rate, and is it fixed or adjustable? Interest rates are often the first thing people notice, but the rate alone doesn’t tell the full story. Ask whether the rate is fixed (stays the same) or adjustable (can change over time), and how it compares to current market rates. This helps you plan for long-term costs and avoid surprises later.

2. What fees come with this mortgage? Low advertised rates can hide extra costs. Ask for a complete list of all fees, including loan setup, processing, closing costs, and any other charges. Knowing all fees gives you a clear picture of the total cost and helps you choose a mortgage that fits your budget.

3. What is the total loan amount, including insurance and taxes, and how will it affect my monthly payments? Interest rates are only part of the picture. The total loan amount, including insurance, taxes, and other costs, determines how much you’ll pay each month. Understanding this upfront ensures that your payments remain manageable and avoid unexpected financial strain.

4. How flexible are the terms if I want to pay off the loan early or refinance? Loan terms affect both monthly payments and long-term flexibility. Ask about the mortgage term, whether you can pay it off early, and whether refinancing is possible without extra fees. Flexible terms allow you to adjust your mortgage to fit your financial goals, whether that’s paying it off faster or changing payments later.

Finding your ideal mortgage isn’t just about picking the lowest rate or the first offer you receive. It’s about understanding the full picture, including interest rates, fees, total loan amount, and loan terms, so you can choose a mortgage that works for your budget and long-term goals.

If you’re ready to start your mortgage journey or just need guidance, don’t hesitate to get in touch via call, text, or email. I’m here to make the process simple and stress-free for you.