20 Questions to Ask a Mortgage Lender Before Buying a Home in Greensboro, NC
Before we ever pull up a single listing to tour together, I am going to ask you to do one thing first: talk to lenders. Not one. Three. I know that sounds like homework, and honestly, it is. But it is the best homework you will ever do, and I am going to explain exactly why.
Let's Start With the Real Part.
Here is the thing: the home search is actually not the first step. I know that may feel backwards. You want to walk through houses. You want to open kitchen cabinets and stand in backyards and imagine your furniture in the living room. I love that part too. It is genuinely my favorite part of this job.
But if we go look at houses before you know what a lender will actually give you, one of two things usually happens. Either you fall in love with something you cannot afford and spend the next three weeks heartbroken, or you make an offer and we discover mid-process that the financing is not going to work the way you hoped. Both of those situations are completely avoidable, and avoiding them is why I ask you to do the lender piece first. We must submit a prequalification letter or Proof of funds with any and all offers we make.
Think of it this way. You would not go grocery shopping for a dinner party without knowing how many people are coming. The budget conversation is how we figure out how many people are coming.
Check out all of our first time buyer resources.
Why Three Lenders Specifically?
Because one quote is just a number. Three quotes is information. This is an interview process with a lender you will work with very closely throughout your home buying process. You want to work with the person who feels like the best fit for you.
Mortgage rates, fees, and loan programs vary more than most people expect, sometimes significantly from one lender to the next. A difference of even half a percentage point in your interest rate does not sound dramatic until you do the math over 30 years. Beyond the rate, lenders charge different fees, move at different speeds, offer different loan programs, and frankly, some of them are just more fun to work with than others.
Shopping three lenders also protects you from accidentally assuming the first offer you get is a good one. It almost always is fine. But you deserve to know that for yourself.
Lenders I Trust and Refer to Regularly
I get asked all the time if I know a good lender. I know several, and here are four people I refer buyers to regularly because they are knowledgeable, communicative, and genuinely good at their jobs. Start with any of them and you will be in good hands.
Ashley McKenzie-Sharpe is a Branch Manager and Senior Loan Officer at Highlands Residential Mortgage (NMLS #100776). You can reach her at (336) 575-9448 or visit her page at highlandsmortgage.com/agents/ashley-mckenzie-sharpe. Ashley knows the Greensboro market well and brings the kind of experience that makes a complicated process feel manageable.
Tena Anton is a Senior Mortgage Banker with Atlantic Bay Mortgage Group (NMLS #659009, licensed in NC), located right here in Greensboro at 400 Bellemeade Street. You can reach her directly at (336) 645-6015, on her cell at (336) 254-8050, by email at tenaanton@atlanticbay.com, or through her website at TenaAnton.com.
Bret Barrow is with JBMG Capital. Bret is also a hard money lender as well as handles DSCR loans. You can reach him at 443-604-7456 or bbarrow@jbmgcapital.com.
Julianne Poindexter is with Barrett Financial Group.Julianne also has DSCR loan experience. You can reach her at 816-726-4580 or julianne@barrettfinancial.com.
Pick two from this list and add your own bank or credit union as a third. You are not obligated to use anyone I refer you to. My job is to make sure you walk into this process informed, not to steer you anywhere. These are just people I trust and I want you to have names you can call today.
For cash buyers: bring proof of funds in lieu of a prequalification letter. A bank statement, brokerage statement, or letter from your financial institution showing available funds works great.
The North Carolina Real Estate Commission requires that every agent review the Working with Real Estate Agents Disclosure with you at our first substantial contact, before any confidential information is shared. This is required under NCREC Rule 58A.0104 and you can read more about it directly at ncrec.gov.
This form is not a contract. Signing it does not mean you are hiring me or committing to anything. It simply means you have been informed about the different types of agency relationships that exist in North Carolina: buyer's agency, seller's agency, dual agency, and designated agency. Think of it as the "here is how real estate actually works" briefing that every buyer deserves at the start.
This one is newer and I want to explain it clearly because it surprised a lot of buyers when it rolled out.
As of August 17, 2024, the National Association of Realtors settlement rules require that a written Buyer Agency Agreement be in place before a Realtor can tour any home with a buyer, in person or virtually. You can read the NAR's own explanation of this requirement at nar.realtor. North Carolina's own rules under 21 NCAC 58A .0104 align with this requirement as well.
This agreement spells out what services I provide, how I am compensated, and the terms of our working relationship. It is specific, it is transparent, and every single piece of it is negotiable. Compensation is not set by law. We talk through it together before you sign anything, and if something does not feel right to you, we discuss it.
I cannot show you homes without this agreement signed. That is not me being difficult. That is me following the rules that exist to make sure you are protected and that I am properly representing you. Showing homes without a signed agreement would mean I was providing you with professional services without any formal commitment to act in your interest. That is not how I operate.
The short version: Prequalification or proof of funds first. WWREA and Buyer Agency Agreement signed before we tour homes. After that, we get to the fun part.
Now, The Questions
Bring this list to every lender conversation. You are not quizzing them. You are gathering the same information from three sources so you can compare honestly and choose the lender who is the best fit for your situation.
The 20 Questions
Bring this list to every lender conversation. You are not quizzing them. You are gathering the same information from three sources so you can compare honestly and choose the lender who is the best fit for your situation.
1. What loan programs am I eligible for?
Ask about FHA loans, VA loans, USDA loans, conventional loans, and any first-time buyer programs available in North Carolina. Different loan types have different down payment requirements, mortgage insurance rules, and property eligibility restrictions. You want to know your full menu before you order.
2. What is the interest rate and is it fixed or adjustable?
A fixed-rate mortgage holds the same interest rate for the life of the loan. An adjustable-rate mortgage (ARM) starts fixed and then changes based on market indexes after a set period. Most buyers in today's market prefer the predictability of a fixed rate, but understanding the difference is worth your time.
3. What is the Annual Percentage Rate (APR)?
The APR includes the interest rate plus lender fees and gives you a fuller picture of what the loan actually costs per year. When comparing lenders, compare APRs, not just interest rates. A lower rate paired with higher fees can end up costing more overall.
4. What is the minimum down payment for this loan type?
Down payment requirements vary widely. Conventional loans can go as low as 3%, FHA loans require 3.5%, and VA and USDA loans can be zero down for eligible buyers. Ask how the down payment amount affects your rate, your monthly payment, and your mortgage insurance requirement.
5. Will I be required to pay Private Mortgage Insurance (PMI)?
PMI is typically required on conventional loans when the down payment is less than 20% of the purchase price. It protects the lender, not you. Ask how much it will add to your monthly payment, how long you will pay it, and exactly how and when it can be removed.
6. What are all the lender fees I will pay at closing?
Ask for a complete breakdown: origination fees, underwriting fees, processing fees, and any other charges the lender controls. These are separate from third-party costs like title insurance and the appraisal. This is where lenders vary the most and where comparison shopping puts real money back in your pocket.
7. What are discount points and should I pay them?
Discount points are upfront fees you pay to buy down your interest rate. One point equals 1% of the loan amount. Whether paying points makes sense depends on how long you plan to stay in the home. Ask your lender to walk you through the break-even math.
8. What will my estimated monthly payment include?
Your full monthly payment is often referred to as PITI: principal and interest, taxes, and insurance. PMI and HOA dues may also be included. Get the complete number, not just principal and interest, so your budget reflects reality.
9. How does my credit score affect my rate?
Your credit score is one of the biggest factors in the rate you qualify for. Ask each lender where your score falls and whether a modest improvement over the next 60 to 90 days could meaningfully change your options. Sometimes a little patience is the best financial move you can make.
10. What is the maximum I am prequalified for, and what do you recommend I actually spend?
Being prequalified for a certain amount does not mean you should spend that amount. Ask your lender what they think is comfortable based on your full financial picture. A good lender will tell you the real number, not just the maximum.
11. What is my debt-to-income ratio and how does it affect my eligibility?
Your debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income. Most conventional loan programs want to see a DTI at or below 43%. Knowing yours helps you understand whether paying off a car loan or other debt before applying would open up better options.
12. How long does your underwriting process take?
Underwriting is how the lender verifies your financial information and officially approves the loan. In a competitive market, a lender who closes in 21 days is a very different partner than one who needs 45. Ask for their real average timeline, not the optimistic version.
13. Can I lock my interest rate, and what does that cost?
A rate lock guarantees your interest rate for a set period while your loan is processed. Ask how long the lock lasts, what happens if closing is delayed beyond the lock window, and whether locking costs anything.
14. What is a Loan Estimate and when will I receive one?
After you apply, lenders are required by federal law to provide a Loan Estimate within three business days. This standardized document breaks down your projected interest rate, monthly payment, and closing costs. It is the tool you use to compare lenders fairly and on equal terms.
15. Are there down payment assistance programs I might qualify for?
North Carolina has several programs through the NC Housing Finance Agency (NCHFA) that offer down payment assistance, reduced interest rates, and mortgage credit certificates for eligible buyers. Not every lender participates. Ask directly, because they will not always bring it up on their own.
16. What documentation will I need to provide?
Get the full list upfront so you are not scrambling later. Typically you will need two years of tax returns, recent pay stubs, bank statements, a government-issued ID, and documentation of any assets you plan to use toward the down payment. Self-employed buyers should expect additional requirements.
17. How does an escrow account work?
Most lenders require an escrow account to collect and pay your property taxes and homeowners insurance on your behalf. A portion of your monthly payment goes into escrow each month. Ask whether it is required for your loan type and how the account is reviewed and adjusted each year.
18. What happens if the home appraises below the purchase price?
An appraisal is an independent estimate of the home's value that the lender requires before finalizing the loan. If the appraised value comes in lower than the agreed purchase price, the lender will only loan against the appraised value. Ask your lender to walk you through your options if this happens.
19. Is there a prepayment penalty on this loan?
A prepayment penalty is a fee some loans charge if you pay off the mortgage early, either by selling or refinancing. Most conventional loans do not include them, but some programs do. Ask directly so there are no surprises if your plans change.
20. What could cause my loan to fall through before closing?
This is the question most buyers forget to ask and arguably the most important one. Job changes, large new purchases, opening new credit accounts, or any significant shift in your financial picture between prequalification and closing can put a loan at risk. Ask your lender to be specific about what to avoid and put it in writing if you can.
| Comparison Category | Lender 1 | Lender 2 | Lender 3 |
|---|---|---|---|
| Lender Name & Contact | |||
| Loan Type Conventional / FHA / VA / USDA / Other |
|||
| Interest Rate | |||
| Annual Percentage Rate (APR) | |||
| Down Payment Required | |||
| Estimated Monthly Payment (PITI) Principal + Interest + Taxes + Insurance |
|||
| PMI Required? Monthly cost + removal conditions |
|||
| Origination Fee | |||
| Discount Points Cost to buy down the rate |
|||
| Other Lender Fees Underwriting, processing, etc. |
|||
| Estimated Total Closing Costs | |||
| Rate Lock Period How many days? |
|||
| Cost to Extend Rate Lock | |||
| Estimated Closing Timeline Days from contract to close |
|||
| Down Payment Assistance Available? NCHFA or other programs |
|||
| Pre-Approval or Prequalification? Which type are they offering? |
|||
| Notes / Overall Impression |
Tip: Ask each lender for their Loan Estimate after you formally apply. That document lets you compare all costs on equal terms.
What Comes Next
Once you have talked to your three lenders and have your prequalification letters in hand, reach out and we will set up a buyer consultation. That is where we dig into your must-haves, your neighborhood questions, your timeline, and your strategy. We will review and sign the WWREA disclosure and the Buyer Agency Agreement together, in plain language with no rush. You will know exactly what to expect from me and exactly how I am paid.
Then we go look at houses. In that order.
I know the process feels like a lot of steps before you get to the part you actually want. But every one of those steps exists for a reason, and doing them in the right order means you walk into every showing as a serious, prepared buyer who knows their numbers. Sellers notice that. Listing agents notice that. It changes how the whole experience feels.
If you have questions before you feel ready to start, just reach out. That is what I am here for.
Bottom Line
Three lenders. Twenty questions. One prequalification letter. Then we find your house.
Joy Watson, Realtor® | Joy Watson Real Estate / Serving Greensboro, NC & the Piedmont Triad / (928) 699-8883 | joy@joywatsonrealestate.com / License #307423 | Firm License #C37131 / Equal Housing Opportunity 🏠
