Get Ready to Talk to a Lender: A Step-by-Step Walkthrough
Follow nine steps with our free tools, and you will finish with a one-page sheet of your numbers, the documents to gather, and questions to ask. Then you can walk into a conversation with a lender knowing where you stand.
This is just for you
We will not connect you with a lender, and we will not send your information to a lender or to anyone else. This walkthrough is a private way to get your numbers and questions ready, so you can choose which lenders to talk to and what to share with them.
- What you type stays in this tab. We do not save or collect it, and it disappears if you refresh or close the page.
- Each tool opens in a new tab, so your notes stay here.
- The sheet at the end is yours to keep, print, or bring to a lender you choose.
This is for getting ready, not a pre-approval
A pre-approval comes from a lender after it checks your credit and reviews your documents. This walkthrough helps you arrive prepared, so that conversation goes faster and you know what to ask.
Check that buying fits your plans
Owning a home costs more than the mortgage payment, and it usually takes several years for buying to cost less than renting. How long you expect to stay helps decide whether buying makes sense, and which loan choices fit.
Open the Rent vs. Buy calculator. Enter your rent and a home price you have in mind, then find the line that says when buying starts to cost less than renting.
Find the income a lender will count
Your paycheck is not always the number a lender uses. Overtime and bonuses are averaged, only part of rent counts, and income that will not last is left out. Include everyone who will be on the loan.
Open the Income Calculator, choose the kinds of income you have, and fill in what you know. Write down the number it shows as “Monthly income a lender may count.”
List your debts and check your credit
Lenders compare your monthly debt payments with your income, and your credit affects your rate and your loan choices. Fixing a mistake on a credit report takes time, so look now.
Add up the minimum monthly payments on car loans, student loans, credit cards, and other loans. Leave out rent, utilities, and groceries. Get your free credit reports at AnnualCreditReport.com and dispute any errors. Hold off on opening new credit while you shop.
See what you could afford
A lender may approve you for more than you want to spend. Start from the monthly payment that fits your life.
Open the affordability calculator. Enter your income (choose “per month” to use your number from step 2), your monthly debts, and what you have saved for a down payment. Compare the Comfortable, Moderate, and Stretch columns, and pick the payment you are comfortable with.
See how a lender may view you
Lenders look at four main things. This quick self-check shows where you stand and how to strengthen each one.
Open Will I Qualify? and answer the four questions. Read what each result means, and note anything it says to work on.
Choose the loan types and programs to ask about
Different loans have different down payments, costs, and rules, and some programs help with the down payment or closing costs.
Take the short Loan Types quiz to see what may fit. Then read the First-Time Homebuyer Programs guide, and note programs to ask about even if you are not sure you qualify.
Get a rough idea of your rate
A rough rate helps you tell whether a lender’s quote is in the right range. It is an estimate, not a quote.
Open the Mortgage Rate Estimator, enter your loan and credit score, and write down the range it gives.
Estimate the cash you will need
Your down payment is only part of it. You also pay closing costs and prepaid items, and it helps to have money left over afterward.
Open the Cash to Close calculator. Enter the home price and down payment from the earlier steps, and write down the total cash you will need. Then enter what you actually have saved.
Learn how to compare offers
The lowest rate is not always the cheapest loan. Fees and points change the real cost, and you can compare lenders fairly only if their offers match.
Plan to talk to two or three lenders within about two weeks, so the credit checks count as one search. Ask each one for a Loan Estimate on the same day, for the same loan type, amount, and rate lock. Read the guides below so you know what you are looking at.
Your lender conversation sheet
This sheet fills in as you go. It stays on your device and is not sent anywhere. Review it, then bring it, and the documents below, to your first conversation with a lender you choose.
Documents to gather
- Recent pay stubs, usually about 30 days' worth
- W-2 forms and tax returns for the last two years
- Bank and savings statements, usually the last two months
- Photo ID and your Social Security number
- Statements for your debts, such as credit cards, car loans, and student loans
- For gift money, a letter from the giver saying it does not need to be repaid
- If you are self-employed, profit and loss statements and business tax returns
- Award letters or statements for other income, such as Social Security, a pension, or child support
Questions to ask each lender
- Which loan types and programs could I qualify for, and which do you recommend for me?
- Do you work with any down payment or closing cost assistance programs?
- What is today’s interest rate and APR for each option, and how many points would I pay?
- Can I see a Loan Estimate for each option, on the same day, for the same loan type, amount, and lock period?
- What are your lender fees, and which ones could change before closing?
- How much cash will I need at closing, and could a seller credit or a lender credit help?
- How will you count my income, including overtime, bonuses, self-employment, or rental income?
- How much will mortgage insurance cost, and when could it end?
- When can I lock my rate, how long does the lock last, what does it cost, and do you offer a float-down?
- Will checking my credit now be a soft check or a full check, and which score do you use?
- How long does the process take from application to closing, and what could slow it down?
- Is there any penalty for paying the loan off early?
- Will I pay my property taxes and homeowners insurance through an escrow account?
This sheet is for getting ready. It is not a pre-approval or a loan offer. A pre-approval comes from a lender after it checks your credit and reviews your documents. Saving a PDF happens on your device, and we do not receive a copy.
Why prepare before you talk to a lender
A lender can tell you what you qualify for, but you will have a better conversation if you already know your own numbers. When you know the income a lender can count, your monthly debts, the payment you are comfortable with, and the cash you have saved, you can tell a good offer from a poor one and you can ask better questions.
Each step in this walkthrough uses one of the free tools on this site, so you are working from your own figures instead of guesses. The tools open in a new tab. Come back here to write down the result and move on to the next step.
Common questions about getting ready
What should I do before I talk to a mortgage lender?
Know the income a lender can count, your monthly debts and a rough credit score, the payment you are comfortable with, and the cash you have saved. This walkthrough takes you through each one with free tools, and it ends with a one-page sheet to bring.
How many lenders should I talk to?
Talk to two or three, and keep your credit checks within about two weeks. Ask each one for a Loan Estimate on the same day, for the same loan type, amount, and lock period, so you can compare them fairly.
Will talking to several lenders hurt my credit?
Mortgage credit checks made close together are usually counted as one for your score, so shopping around should not hurt it much. A soft check is a good way to explore. Ask each lender whether its check is soft or full.
Is this walkthrough a pre-approval?
No. It helps you prepare. A pre-approval comes from a lender after it checks your credit and reviews your documents.
Will this connect me with a lender?
No. This walkthrough does not connect you with a lender or share your information with one. It is for your own use, so you can choose which lenders to talk to and decide what to share with them.
Is the information I enter saved or sent anywhere?
No. What you type stays in your browser tab and disappears when you refresh or close the page. We do not collect it, and we do not send it to a lender or to anyone else. Each tool opens in a new tab so your notes stay here.