You wouldn’t buy the first car a dealership shows you, would you? Especially if you haven’t compared features, financing, or reliability. Well the same logic applies to choosing a lender. Rates, terms, and service quality aren’t uniform across providers; in fact, sometimes they’re not even close. And if you don’t ask the right questions early, you might end up locked into a loan that eats away at your budget or peace of mind.
Whether you’re seeking a mortgage, a personal loan, or a specialized product like a VA loan, asking the right questions can surface red flags or highlight standout service providers worth trusting. Our suggestion? Treat this like a serious vendor evaluation. Because that’s what it is.
Start With the Basics, But Also Push for Specifics
The first red flag? Vague answers. You’re not looking for generalities like “competitive rates” or “flexible options.” You want specifics.
Ask:
- What’s your current interest rate for someone with my credit profile?
- Do you charge origination fees, application fees, or any hidden costs?
- Can I see a Loan Estimate upfront?
Federal law requires lenders to provide a Loan Estimate within three business days of receiving your application. If they dodge the question or hesitate, it’s wise to take that as a sign they might not be upfront about other things either.
Clarify the Loan Structure
Too many borrowers focus only on monthly payments. That’s important, sure, but not in isolation. You need to understand how the loan behaves over time.
Ask questions like:
- Is the rate fixed or adjustable?
- How long is the term, and what’s the full cost of the loan by the end?
- Can I pay it off early without penalties?
Prepayment penalties aren’t as common as they once were, but they still exist, especially in certain subprime or nontraditional loans. If you’re planning to refinance later or pay off early, you’ll want clarity here.
Evaluate Communication and Support Standards
Rates are numbers. Important numbers, of course, but service is everything else. And it’s often the part that’ll frustrate you most, especially during underwriting or closing.
A good lender is accessible, consistent, and transparent. A better one assigns you a point-of-contact who doesn’t vanish once you sign the first document.
Ask:
- Who will be my main contact during the process?
- How quickly do you typically respond to questions?
- Can I reach someone after hours if needed?
Griffin, for instance, has earned a reputation for treating communication like a core product offering. Instead of routing borrowers through layers of impersonal touchpoints, they assign a dedicated loan specialist who handles everything, from qualification to close. This kind of direct ownership isn’t just pleasant, it’s efficient. And it sets a service benchmark more lenders should be held to.
Dig Into the Timeline and Accountability
Loan timelines are commitments. After all, a delay can mean losing a property or missing your refinance window. This is why a reliable lender will provide timelines.
You’ll want to ask:
- What’s the average time from the funding application?
- What delays are common, and how do you handle them?
- If you miss the timeline, what recourse do I have?
For example, the average time to close a mortgage in 2024 was around 44 days. But that number hides a lot of variability. If a lender can’t offer a clear process breakdown, that should give you pause.
Get a Read on Product Breadth and Customization
Not every borrower fits neatly into one mold. Some lenders treat that as a deal-breaker. Others, often the better ones, treat it as a prompt to craft better solutions.
Ask questions like:
- Do you offer portfolio loans or non-QM products?
- Can you structure this around irregular income (like 1099 work or business ownership)?
- What’s your experience working with self-employed borrowers or investors?
This isn’t about forcing them to say yes, it’s about gauging how adaptive and flexible they are. If you’re not a textbook W-2 employee with spotless credit, you need a lender who can work with that complexity.
Compare Rate Locks and Market Responsiveness
The loan market changes daily, sometimes hourly. A lender who lets your rate float for too long (without locking it when you’re ready) can cost you thousands.
Ask directly:
- Do you offer rate locks, and for how long?
- What’s the cost to extend a lock if needed?
- If rates drop after I lock, do you offer a float-down option?
This part of the conversation separates lenders who track market shifts closely from those who merely react. A well-timed lock is the difference between a good deal and a regret.
Look Beyond Numbers (To Values)
It’s easy to get hyper-focused on APRs and closing costs. And yes, you should optimize those. But it’s also important to view and treat lending as a service business. In other words, you want to look at how lenders treat customers under pressure: during delays, disputes, or even denials. Because not every process is smooth.
Things happen, and you want to know how a lender will respond to these changes. You want someone who stays accountable when the market tightens or underwriting gets tricky. To find whether the lender in question is like this, look at borrower reviews, referral rates, and whether they have repeat clients. All this is important because you’re not just shopping for a loan. You’re assessing whether a lender understands your needs, respects your time, and earns your trust.
