Before choosing a lender, don't be afraid to ask questions.

Private Lending & Conventional Mortgage Advice

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Before choosing a lender, don't be afraid to ask questions.

Siahna ImBusiness Member

Lender · Lakewood, WA · Member since 2021 · 79 posts · 28 votes

What's included? What are the fees? What's the term? What happens if the project takes longer than expected?

What's one question you always ask a lender before signing?

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Mike GrudzienPro Member

Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes

12h

You better ask a lot of questions, not one question.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
12h
You better ask a lot of questions, not one question.
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Noah WrightBusiness Member
USA, Nationwide · Member since 2024 · 196 posts · 93 votes
9h
Fees is the one I'd push hardest on, because the points are often the only cost quoted up front. Ask for a written fee sheet with every line on it, origination, underwriting, processing, doc prep, and on a rehab loan the inspection fee per draw and what an extension costs. On a DSCR loan, ask about the prepayment penalty too, since many of the programs I see carry one. Then compare that sheet to the estimated settlement statement before signing, because that's where extra line items tend to show up. Two offers with the same rate and points can end up well apart once everything is written down. The cheaper loan is the one with the lower total cost, not the lower rate.
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Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 433 posts · 174 votes
8h
@Siahna Im I’d ask for the full cost in writing—not just the interest rate. What fees are due upfront, how draws work, whether interest applies only to money drawn, and who pays for inspections and extensions?
I’d also confirm the term, payment schedule, prepayment rules, and exactly what happens if the project runs long. Can you extend, what will it cost, and is approval guaranteed or up to the lender?
My one must-ask question: “What could cause you to stop funding draws or refuse an extension, even if I’m current?”
That answer usually tells you more than the sales pitch. And if it matters, make sure it’s in the loan documents—not just promised verbally.
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