What Should You Ask Lenders to Find Your Ideal Mortgage?

By Josh Painter

Josh Painter is a coach, philanthropist, and the author of the book Best Version Ever.

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’s the true monthly cost? It’s easy to focus only on the interest rate, but that’s just one piece of the monthly payment. Most homeowners also pay additional costs each month, like property taxes and homeowners insurance, and sometimes HOA dues depending on the property.

These expenses aren’t part of the loan itself, but they can significantly impact what you’ll actually be paying every month. Getting a clear picture of the full monthly cost upfront helps you budget with confidence, avoid surprises down the road, and make sure the home comfortably fits within your financial plan.

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.