The questions to ask
your mortgage broker.
The right questions separate brokers who work in your interest from brokers who work in their own. These are the questions worth asking — with honest answers to each one so you know what a good answer looks like before you ask.
Questions about your specific file
These questions tell you whether the broker has actually reviewed your situation or is giving you a generic answer.
Am I better off with conventional, FHA, or a non-QM program — and why?
A good broker shows you the comparison on your actual file — not a general preference. The answer should reference your specific credit score, income documentation, and down payment. If the answer does not include your numbers, it is a generic answer.
Why it matters: the right program saves thousands over the loan life. The wrong one costs money every month for 30 years.
What is my actual qualifying income — and how did you calculate it?
Income calculation is not straightforward for self-employed borrowers, 1099 earners, or anyone with multiple income sources. Ask specifically how your income was calculated and which tax return lines or bank deposits were used. The qualifying income determines your loan amount.
Why it matters: income is frequently miscalculated, and finding out after you are under contract is costly.
What is the maximum loan amount I qualify for — and what monthly payment does that create?
The maximum you qualify for and the payment you should comfortably carry are often different numbers. A good broker tells you both and asks which scenario you want to plan around.
Why it matters: qualifying for a loan amount and being comfortable with the payment are not the same thing.
Is my file ready to apply, or do I need to do something first?
An honest answer might include: pay down a specific debt, address a credit issue, document a source of funds, or wait for income history to establish. This is one of the most valuable things a mortgage conversation can produce — a specific preparation plan.
Why it matters: applying before the file is ready wastes time and credit inquiries. Knowing what to fix first saves both.
What can go wrong on my specific file between application and closing?
Every file has vulnerabilities. A broker who has reviewed your situation can identify the most likely issues before they become problems — appraisal risk, insurance cost impact on DTI, property type eligibility, employment documentation gaps.
Why it matters: surprises after going under contract are the most expensive kind.
Questions about the loan structure
Why this program and not the alternatives?
The broker should be able to articulate why conventional is better than FHA for your file (or vice versa), with specific reasons tied to your credit, down payment, and hold period. 'This is what most people do' is not an answer.
Why it matters: program selection is the most consequential decision in the mortgage process.
Does this program have mortgage insurance — and can it be removed?
Conventional PMI can be removed when the loan reaches 80% LTV. FHA MIP in most cases stays for the life of the loan. The answer changes the long-term cost calculation significantly.
Why it matters: permanent mortgage insurance on a 30-year loan adds $50,000–$100,000+ in total cost compared to a program where it can be removed.
What rate am I actually being quoted — and what LLPA adjustments are applied to my file?
The rate headline is meaningless without understanding what loan-level price adjustments are stacked on it for your credit score, LTV, property type, and occupancy. Ask for the LLPA breakdown.
Why it matters: two borrowers can receive the same rate quote for very different underlying loan structures.
Is this a 30-year fixed, and if so, are there other term options worth considering?
A 15-year or 20-year fixed typically prices lower and results in dramatically less total interest. Whether the higher payment is manageable is a cash flow question. Ask your broker to model both options.
Why it matters: the term choice affects the total interest paid by tens of thousands of dollars.
Questions about what you are actually paying
What are your total origination fees — and what is your compensation on this loan?
Federal law requires broker compensation to be disclosed on the Loan Estimate. The broker earns either lender-paid compensation (built into the rate) or borrower-paid compensation — not both. Ask what the specific amount is and how it is structured.
Why it matters: compensation structure affects pricing. Understanding it gives you a basis for comparison.
What is my total cash to close — including down payment, closing costs, prepaids, and escrow setup?
Total cash to close is almost always larger than the down payment alone. Ask for a complete estimate that includes lender fees, title charges, prepaid interest, insurance prepaids, and initial escrow deposits.
Why it matters: most buyers plan only for the down payment and are surprised by the additional $8,000–$15,000 needed to close.
What is the break-even on any points I am paying?
If you are paying discount points to buy down the rate, ask how many months it takes for the monthly savings to recover the upfront cost. If the break-even exceeds your likely hold period, the points do not make financial sense.
Why it matters: paying points to reduce the rate is only valuable if you hold the loan long enough to recover the cost.
How does this Loan Estimate compare to competing quotes on the same loan?
As a broker, we have access to multiple wholesale lenders simultaneously. Ask to see the pricing comparison across lenders for your specific file before choosing a lender.
Why it matters: wholesale lender pricing varies. The broker's value is finding the best fit across multiple options, not just one.
Questions about what happens next
Have you run my file through automated underwriting (DU or LPA) — what did the findings say?
An AUS Approve/Eligible finding is the most meaningful pre-approval documentation available. If the broker has not run AUS, ask them to before you make an offer. The findings specify exactly what documentation is needed.
Why it matters: a pre-approval letter without AUS findings is an estimate. AUS findings are the actual approval criteria.
What specific documents do I need to provide — and how quickly?
The documentation list should be specific to your file, not a generic checklist. Self-employed borrowers have different requirements than W-2 employees. Investment property buyers need different documents than primary residence buyers.
Why it matters: incomplete documentation is the most common cause of closing delays.
What is the realistic closing timeline for my situation?
Timelines depend on lender processing times, appraisal scheduling, and how clean the documentation is. A realistic estimate — not an optimistic one — lets you negotiate contract terms that match what is actually achievable.
Why it matters: a contract with a 30-day closing on a file that needs 45 days creates avoidable pressure.
What could delay my closing — and what can I do to prevent it?
Common delays: slow condition response, appraisal scheduling, insurance binder delays, condo project review. Your broker should be able to identify the specific risks in your file and tell you what to do proactively.
Why it matters: delays after going under contract cost money and can jeopardize the transaction.
Questions about who you are working with
Are you a mortgage broker, a bank, or a direct lender — and what is the difference for me?
A broker accesses multiple wholesale lenders and is required to disclose compensation. A bank or direct lender funds from their own capital and offers only their own products at their own pricing. Neither is universally better — but you should know which one you are dealing with and what it means for your options.
Why it matters: the answer determines how many product options you are actually being shown.
Who will be handling my file day to day — and who do I contact if something comes up?
Some operations hand files off between processors, underwriters, and loan officers without clear communication. Know who owns your file and who to contact when you need a status update or have a question.
Why it matters: communication gaps during underwriting cause the most avoidable delays.
Can you provide references from recent borrowers with a similar situation to mine?
A broker who has handled files like yours — same income type, same program, similar property — should be able to point to recent successful transactions. Ask.
Why it matters: experience with your specific file type reduces the likelihood of avoidable complications.
Answers that should concern you
Every question on this page — we will answer it directly and specifically for your file. That is what the first conversation is for. Call, email, or use the pre-qualification form and ask anything on this list.
We answer every question directly
Bring this list to your first conversation with us. Ask every question. If any answer concerns you, tell us — and if we cannot give you a better one, we will tell you that honestly and point you in a better direction.
Optimal Mortgage LLC is a Licensed Mortgage Broker only, not a Mortgage Lender or Mortgage Correspondent. We arrange loans through a network of wholesale lenders and do not make loan commitments or fund loans directly. Every client receives the same standard of care — honest analysis, their best interest first, regardless of which loan officer handles their file.
Optimal Mortgage LLC · NMLS #2503896 · FL MBR6553 · Licensed Mortgage Broker · Equal Housing Opportunity · (305) 524-4400 · INQ@OptMtg.com