What questions should you ask your lender before buying a home in Mount Pleasant, SC?

Before you commit to a mortgage lender, you should understand how your interest rate is determined, what fees you’ll pay, how closing costs work, and how your credit impacts your loan. Asking the right questions upfront can save you thousands—and give you confidence throughout the process.

Buying a home in Mount Pleasant or the greater Charleston area is an exciting milestone. But while you’re touring homes and picturing furniture placement, your financing strategy is quietly shaping your long-term financial future.

The right lender won’t just quote you a rate—they’ll educate you, guide you, and position you to compete confidently in today’s market. Here are the most important conversations you should have before moving forward.

1. How Is My Interest Rate Determined?

The rate you see advertised online isn’t necessarily the rate you’ll receive. Your personal financial profile plays a major role in what you qualify for. Your credit score, your debt-to-income ratio, the type of loan you choose, your down payment, and even the loan term all factor in.

Ask your lender to clearly explain how your specific situation affects your rate. A good lender should be able to walk you through this in plain language so you understand exactly what’s driving the numbers.

2. Can You Lock My Rate — and What Happens if Rates Drop?

Interest rates fluctuate daily, and timing matters. Ask how long you can lock your rate, whether there’s a cost involved, and what happens if rates improve before you close. Some lenders offer a float-down option that allows you to adjust once if rates drop.

Understanding your options here protects you and gives you peace of mind while you’re under contract.

3. What Are Your Lender Fees?

Every lender structures their fees differently. You’ll likely see charges for origination, underwriting, processing, and other administrative costs. Instead of focusing only on the interest rate, ask for a full breakdown of lender fees so you can compare the total cost of the loan.

Two lenders may offer similar rates but very different fee structures. Clarity here matters.

4. What’s the Difference Between Closing Costs and Prepaid Items?

This is one of the most common areas of confusion for buyers. Closing costs cover the services required to finalize your loan, such as the appraisal, title work, and lender-related fees. Prepaid items are different. They typically include things like property taxes, homeowners insurance, and prepaid interest.

Both are due at closing, but they serve different purposes. When your lender explains the distinction clearly, it becomes much easier to budget confidently.

5. How Much Will I Need at Closing — and Who Pays What?

In our local market, closing costs often range between 2–5% of the loan amount, depending on the price point and loan type. Ask your lender for a realistic estimate of your total cash to close and how accurate that estimate is at this stage.

You should also ask whether seller concessions might be an option. Knowing these numbers early prevents last-minute stress.

6. What Is an Escrow Account — and Is It Required?

An escrow account is essentially a managed account where your lender collects money each month to pay your property taxes and homeowners insurance on your behalf. Many lenders require this, particularly if your down payment is smaller.

It’s important to understand how escrow impacts your monthly payment so you’re not surprised when you see the full breakdown.

7. Where Are Your Underwriters and Processors Located?

Communication can make or break a transaction. Some lenders operate with centralized teams across the country, while others maintain local underwriting and processing. In the Lowcountry, where hurricane season can directly impact your closing, strong communication and responsiveness can make a meaningful difference in keeping your closing on track.

It’s worth asking how your file will be handled behind the scenes.

8. What Are the Advantages of Working With a Local Lender?

Local lenders often have firsthand familiarity with our regional appraisal standards, common property types, and local closing timelines. While national lenders absolutely close loans every day, local experience can sometimes create smoother coordination during a fast-moving transaction.

Understanding how your lender operates helps you decide what feels right for you.

9. Do Real Estate Agents Receive Kickbacks for Referrals?

No. Under federal law, real estate agents cannot receive referral fees or kickbacks from lenders. When Lauren Zurilla & Associates recommends a lender, it’s based on professionalism, communication, and past client experience—not compensation.

Transparency matters, and you deserve to know that.

10. What Documentation Will You Need From Me?

Expect to provide income documentation such as W-2s or tax returns, recent bank statements, employment information, and identification. The more complete and accurate your documentation is upfront, the smoother your underwriting process will be.

A proactive start prevents delays later.

11. What’s the Difference Between a Soft Pull and a Hard Pull?

A soft pull allows a lender to review your credit without affecting your score. A hard pull occurs when you formally apply and may temporarily lower your score by a few points. If you’re early in the process, ask whether prequalification can begin with a soft pull.

Understanding this distinction helps you plan your timeline thoughtfully.

12. When Will My Credit Be Pulled — and Is There a Fee?

Most lenders perform a hard credit pull once you submit a full application. There may be a small pass-through fee from the credit reporting agencies. Knowing when this happens ensures you aren’t caught off guard and helps you avoid making major financial changes at the wrong time.

13. How Much Does My Credit Score Impact My Rate?

Your credit score is one of the biggest drivers of your interest rate. Even a modest improvement can potentially reduce your rate and save you significant money over the life of the loan.

If your score isn’t where you’d like it to be, ask what steps you can take to strengthen it before locking in your loan.

14. Are There Steps I Can Take Now to Improve My Rate?

A great lender won’t just evaluate your numbers—they’ll guide you. Paying down revolving credit balances, avoiding new debt, or correcting errors on your credit report can all make a difference.

Small strategic moves today can create long-term savings tomorrow.

Final Thoughts: Financing Is Strategy, Not Just Paperwork

Choosing the right lender isn’t about chasing the lowest advertised rate. It’s about partnering with someone who communicates clearly, explains your options thoroughly, and helps you make confident financial decisions.

When you’re buying in Mount Pleasant, preparation truly is power. The more informed you are before you go under contract, the smoother your experience will be from start to finish.

Ready to Take the Next Step?

If you’re thinking about buying in Mount Pleasant or the greater Charleston area, Lauren Zurilla & Associates would be happy to connect you with trusted local lenders who prioritize transparency, responsiveness, and a seamless closing process.

Reach out anytime for personalized lender recommendations and guidance tailored to your goals.

Warmly,

Lauren, Tina and Gigi | Lauren Zurilla & Associates