Don’t Sign on the Dotted Line Until You Ask These 7 Questions
Buying a new home is equal parts exciting, and scary! Especially in fast-growing areas like Clayton, Smithfield, Selma, and throughout Johnston County. The mortgage process can feel like a mystery if you don’t know the right questions to ask upfront.
Whether you’re a first-time buyer or a seasoned homeowner looking for a fresh start, your lender is one of the most important players on your home buying team. Choose wisely—because not all lenders (or loan products) are created equal.
Here are 7 smart questions every Johnston County homebuyer should ask their lender before moving forward. Below are some questions along with some corresponding answers to help you along the way.
1. Are You a Mortgage Broker or a Direct Lender?
There’s a difference. A direct lender offers only their own loan products, while a broker shops your application around to multiple lenders. Both can be helpful—it just depends on your goals. Ask how their model benefits you, and whether they have relationships with local builders or down payment assistance programs in North Carolina.
Our RiverWILD Real Estate lender partner, Don Waters at Fairway Mortgage provided this explanation on their model.
We are considered a corespondent lender or mortgage banker. A good hybrid mix between the mortgage broker and a direct lender.
Don Waters
2. What Fees Do You Charge—And Which Ones Are Negotiable?
It’s common for buyers to overlook this one, but closing costs can add up fast. Ask about:
- Application fees
- Origination fees
- Discount points
- Underwriting fees
A reputable lender will explain what’s mandatory and what might be waived or reduced. And don’t be afraid to negotiate!
3. How Fast can You Close Our Loan Once We Go Under Contract?
This protects your earnest money deposit, so it’s critical. In Johnston County’s competitive housing market, you want a lender who can confidently meet your timeline—whether that’s a 21-day standard window or something faster.
Ask: “Can we confidently remove this contingency in 10-14 days?” Their answer could make or break your offer.
4. How Many People Will I Be Communicating With?
Some lenders keep it personal. Others hand you off to a chain of processors. It’s not about one being better than the other—it’s about knowing what to expect.
Will you have a single point of contact? Will updates come from a loan officer or someone else? The smoother the communication, the less stress you’ll feel along the way.
Don Waters provided this response to this question.
The benefit of utilizing a team, much like the RiverWILD Team. is we give you solid response times and which helps make your transaction consistent and reliable!
Don Waters
5. How Often Will You Communicate With Me—and With My RiverWILD REALTOR®?
In a real estate transaction, communication is everything. Especially once you’re under contract and the clock is ticking on inspections, appraisals, and closing disclosures.
Ask how often you’ll get updates. Weekly? Daily? And more importantly—will your RiverWiLD REALTOR® be looped in every step of the way?
6. What’s My Interest Rate—and Does It Include Any Buy-Down Points?
This one’s huge. Some lenders quote a low rate but don’t disclose it requires you to pay points at closing. Others will quote a true market rate.
Be crystal clear:
- Is the quoted rate a par rate (no buy-down)?
- If there are points, how much will they cost?
- Are those costs worth the monthly savings?
- Transparency here can save you thousands—and plenty of headaches.
7. What’s One Thing Buyers Are Usually Surprised By in the Lending Process?
This question cuts through the script. A good lender will give you an honest answer about something most people overlook—whether it’s the impact of credit pulls, how student loans affect debt-to-income ratios, or what to expect with jumbo loans or USDA programs in Johnston County.
8. Bonus Question – Ask if I’m Eligible for any First Time Homebuyer Programs?
You’d be surprised how many buyers skip this question—only to find out later they missed out on thousands in grants, down payment help, or special loan terms.
If you’re buying your first home, ask these questions early to your lender partner:
- Do I qualify as a first-time homebuyer—even if I owned a home before? (Many programs define “first-time” as not owning in the past 3 years.)
- What’s the minimum credit score for first-time buyer programs in my area?
- Are there any local or state grants or forgivable loans I can apply for?
- Do I have to be below a certain income level to qualify?
- Can I combine these programs with FHA, VA, or USDA loans?
- Are there extra benefits (like lower interest rates or reduced PMI)?
- Do these programs apply to new construction or only resale homes?
- Will using a program limit the types of homes I can buy?
- What’s the process and timeline for applying—do I need pre-approval first?
- What happens if I sell or refinance later—do I pay anything back?
Final Advice: Trust Your Gut
This isn’t just about numbers—it’s about trust. You need a lender who respects your goals, communicates clearly, and supports you through closing. If something feels off, it probably is. And if it feels right? You’ve found your match.
Need a Trusted Local Lender?
At RiverWILD Real Estate, we work with vetted, local lenders who know Johnston County inside and out. We’d be happy to introduce you to one of our preferred partners who can walk you through your options, from FHA and USDA to conventional and VA loans.
Buying a home doesn’t have to be confusing—especially when you’ve got the right team.