--- title: Questions To Ask Your Lender When Buying A Home description: Financing your home loan isn't the first thing that comes to mind during the process but it is essential. Here are five questions you should ask your lender. image: https://rmcu.net/hubfs/Campaigns/MORTGAGE/iStock-134212767.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/questions-to-ask-your-lender-when-buying-a-home#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/questions-to-ask-your-lender-when-buying-a-home#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [Home and Mortgage](https://rmcu.net/blog/topic/home-and-mortgage) # Questions To Ask Your Lender When Buying A Home Read Time **2 mins** | Written by: Rocky Mountain Credit Union [mailto:?subject=Questions%20To%20Ask%20Your%20Lender%20When%20Buying%20A%20Home&body=https%3A%2F%2Frmcu.net%2Fblog%2Fquestions-to-ask-your-lender-when-buying-a-home](mailto:?subject=Questions%20To%20Ask%20Your%20Lender%20When%20Buying%20A%20Home&body=https%3A%2F%2Frmcu.net%2Fblog%2Fquestions-to-ask-your-lender-when-buying-a-home) ## What Are My Down Payment Options? The down payment on a home loan can range from no money down to as much as 20% or more. Knowing what you can afford to put down on your home is important for your financial institution to know. This helps them to determine which loan is the best for you. Ask your lender what types of loans you would qualify for and what their down payment requirements entail. ## Should I Go With a Fixed Rate or Adjustable Rate? Fixed rate mortgages will lock in the interest rate when you sign the loan for the duration of the loan's maturity. These loans can be a great option if you are buying when the interest rates are extremely low. An adjustable rate mortgage will have a set interest rate during a defined period, usually a couple of years, then the rate will fluctuate with the current interest rates. If interest rates are high when you purchase, this is a much better option for many home buyers. Additionally, those who may need a lower monthly payment in the beginning, or may have a lower credit rating, may find this is their best option. Your lender should be able to provide you guidance on which loan type might be best for you in your current situation. Be sure to ask which they recommend and why it is best for you.  ## What is Private Mortgage Insurance? Private mortgage insurance, or PMI, is an insurance that covers your loan amount provided by a private insurer. This will cover the mortgage for the lender if you fail to pay the loan back and it will be added to your monthly mortgage payment. PMI is typically required on conventional loans where less than 20% is put down as well as FHA loans. Ask your lender about PMI in order to better understand how it works for you and if it is necessary for you.  ## What Can I Expect to Pay For in the Closing Costs? On average you can expect to pay between 2% and 5% of the cost of the home for closing fees. The types of fees may vary slightly, but you can most likely expect to see the following fees: - Application Fees - Appraisal - Closing Fee - Credit Report - Escrow Payment - Flood Determination - Home Inspection  - Homeowners Insurance - Title Insurance - Lead Paint Inspection - Termite Inspection - Origination Fee - Property Tax - Points (if this is part of your loan arrangement) - Recording Fees - Survey - Transfer Taxes - Underwriting Fee - Attorney Fees if Required ## What is Involved in the Closing Process? At your closing, you will pay all of your closing fees and escrow requirements. During the process, you can expect there to be a closing agent, a representative from the title company, the homeowners, and the lender. You will sign all the necessary documents and when completed should receive the following items: - Closing Disclosure - Mortgage Note - Mortgage or Deed - Certificate of Occupancy (if you are buying a new home) You can also expect to receive copies of all appraisals and inspections and finally will be handed the keys to your new home. If you are interested in buying a home, contact one of the loan representatives at [Rocky Mountain Credit Union](https://www.rmcu.net/contact-us/) today for more information on a home loan or to apply. ***If you enjoyed this blog, take a look at some of our other related articles:*** ##### Rocky Mountain Credit Union Share the Love [mailto:?subject=Questions%20To%20Ask%20Your%20Lender%20When%20Buying%20A%20Home&body=https%3A%2F%2Frmcu.net%2Fblog%2Fquestions-to-ask-your-lender-when-buying-a-home](mailto:?subject=Questions%20To%20Ask%20Your%20Lender%20When%20Buying%20A%20Home&body=https%3A%2F%2Frmcu.net%2Fblog%2Fquestions-to-ask-your-lender-when-buying-a-home) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/RMCU_finding-lender-blogHeader.jpg?width=700&name=RMCU_finding-lender-blogHeader.jpg) Tips from the Pros ### [Finding the Right Lender For Your Needs](https://rmcu.net/blog/finding-the-right-lender-for-your-needs) Whether you’re looking for a loan, finding the right lender is the most important step. Here’s how t... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/RMCU_Visasept-2_c.jpg?width=700&name=RMCU_Visasept-2_c.jpg) In The Community ### [Getting Your First Credit Card](https://rmcu.net/blog/getting-your-first-credit-card) There are all sorts of important financial milestones in your life. Here's how your first credit car... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/Blogs/Three%20Red%20Flags%20to%20Look%20For%20When%20Buying%20a%20Home.jpg?width=700&name=Three%20Red%20Flags%20to%20Look%20For%20When%20Buying%20a%20Home.jpg) Home and Mortgage ### [Three Red Flags to Look For When Buying a Home](https://rmcu.net/blog/three-red-flags-to-look-for-when-buying-a-home) It's your time to finally buy a home. But what do you need to be looking for? We have three red flag... 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