Most first-time buyers walk into a lender meeting without knowing what to ask. They leave with a rate quote and a stack of paperwork — but not a clear picture of what they're agreeing to or how this lender compares to the next one. That gap between what buyers know and what they need to know often leads to surprises at closing.

This guide gives you the questions to ask at your first lender meeting, what to listen for in the answers, and how to use that information to compare lenders side by side.

What Loan Types Are You Recommending, and Why?

Not every loan product fits every buyer. Your lender should explain the options available to you — conventional, FHA, VA (if you're eligible), and USDA — and make a clear case for which one they're recommending based on your down payment, credit profile, and timeline.

In Texas, there are also state-backed programs through the Texas Department of Housing and Community Affairs (TDHCA) that offer down payment assistance and below-market rates for qualifying buyers. Ask whether you qualify and whether the lender participates in those programs.

If a lender only mentions one product without explaining the tradeoffs, that's worth noting. A good lender walks you through the comparison.

Ask this follow-up: "What are the main differences between these options in terms of monthly payment, mortgage insurance, and total cost over five years?" Getting that comparison in writing helps you evaluate lenders on equal terms.

What Rate Can I Expect, and What Affects It?

The rate you see advertised is rarely the rate you'll get. Your rate depends on your credit score, loan-to-value ratio, loan type, property type, and whether you're buying points to lower it. Ask the lender to walk you through each factor and how it applies to your situation.

Also ask about the Annual Percentage Rate (APR), not just the interest rate. The APR includes fees rolled into the cost of borrowing and gives you a more accurate basis for comparing offers.

Be specific about assumptions. If one lender quotes a rate assuming a 760 credit score and 20% down, and another quotes assuming 700 and 5% down, the quotes aren't comparable. Pin down the assumptions before you leave.

How Long Can You Lock My Rate, and When Should I Lock?

Rate lock windows typically range from 30 to 60 days, though some lenders offer longer locks — sometimes with a cost. In a competitive market like DFW, where contract timelines can compress quickly, knowing your lock options matters.

Ask what happens if your closing is delayed beyond the lock window. Some lenders extend at no cost; others charge a fee or let the rate float. Get the policy in writing before you're in a time crunch.

Timing note: In Texas, the option period and financing contingency timelines in the TREC One to Four Family Residential Contract are fixed at negotiation. Your lender needs to understand those deadlines so the loan timeline doesn't run past your contract window.

What Are the Estimated Closing Costs?

Federal law requires lenders to provide a Loan Estimate within three business days of receiving your application — but you can ask for a preliminary breakdown at your first meeting. Look at the full picture: origination fees, discount points, appraisal, title insurance, prepaid interest, and escrow setup.

Closing costs in Texas typically run approximately 2% to 5% of the loan amount, though the exact figure varies based on loan size, lender fees, and title costs. Some fees are negotiable; others are fixed. Ask which are which.

Also ask whether the lender offers a no-closing-cost option (where costs are rolled into the rate) and what the tradeoff is. It's not inherently bad — it just shifts when you pay.

Use the CFPB's mortgage shopping worksheet to record estimates from each lender using the same line items. That apples-to-apples comparison often reveals meaningful differences that a rate quote alone won't show.

How Long Does Underwriting Take, and What Could Slow It Down?

Turnaround time matters when you're under contract with a closing date on the calendar. Ask your lender how long underwriting typically takes from completed application to clear-to-close — and whether that timeline is realistic given current volume.

Ask what commonly causes delays and what you can do to prevent them: W-2s, tax returns, bank statements, gift letter documentation, explanation letters for credit inquiries. Getting ahead of these requests before you're under contract saves time when it counts.

Also ask whether the lender does in-house underwriting or sends loans out. In-house underwriting often means faster turnaround and better communication when questions come up.

Are There Prepayment Penalties or Restrictions?

Most conventional and government-backed loans today don't carry prepayment penalties, but it's worth confirming. Ask directly whether you can make extra principal payments or pay off the loan early without penalty.

If you're considering refinancing within a few years — or plan to sell before the end of the loan term — understanding payoff flexibility helps you evaluate the true cost of the loan.

Your first lender meeting is a screening call as much as an application. The questions above give you the framework to compare lenders on substance — not just rate — and to walk into your purchase with a clear picture of what you're committing to. A licensed Texas REALTOR® or buyer's agent can help you coordinate lender timelines with your contract dates so nothing falls through the cracks. EXL Realty Group (TREC #9015220) works with buyers across DFW and helps connect them with the right resources at every stage of the process.