When you are k a mortgage loan, you must first check out the variety of lenders who say they can help. A mortgage is serious business and it can also be a complex process that too few potential homebuyers truly understand. Without clear knowledge of what to expect and what the mortgage loan process involves, buyers risk defaulting when they can’t keep up with the financial obligations because they didn’t understand the contracts they were signing.

Meeting with a mortgage lender is a good way to clear the air and really get to know the process of applying for and closing on a loan. It is important you find a lender that will work with your specific financial situation and be willing to details the process for you.

Here are 5 things to ask a potential mortgage lender before you sign on the dotted line:

1. What Kind of Interest Rate Can I Get?

The interest rate is one of the most important factors in a mortgage loan and since it is influenced by many of your own financial status. The interest rate will affect your monthly payment so ideally you want to find the lender offering the lowest rate. Buyers who are creditworthy will likely be the most eligible candidates for a low APR. The higher a buyer’s risk of default based on credit score, the higher the APR on the mortgage loan will be. You also want to know what kind of rate you are going to get on the loan. There are two types: fixed and adjustable. A fixed rate will stay the same throughout the life of the loan while an adjustable rate will vary.

2. What Are the Closing Costs?

Closing costs are paid out at the closing of the loan. They include application fees, home appraisals, credit reports, title insurances, attorney fees, and other associated expenses. The lender is required to provide buyers a Good Faith Estimate that outlines the fees involved with the closing within a three day time period of a mortgage loan application. Discuss with the lender which of the fees may be waived if possible.

3. How Long Will Processing Take?

Securing a mortgage and closing on a home is not a quick process. You’ll want to check in with the lender about the time frame of the mortgage process. This is especially important when interest rates are low because applications tend to pick up, causing a backlog in processing. Reputable lenders should be able to tell you how long each part of the process will take from application to closing.

4. How Much Down Payment Do They Require?

In light of the recent crisis in the mortgage industry, lenders are much stricter about who they are lending money to and the requirements for getting approved for a mortgage loan. Nearly all private lenders will require at least 20% of the home price to be put down to close on the loan. There are down payment assistance programs offered by many states and buyers can also check into government-sponsored programs that do not require the full 20% down.

5. What Will My Payment Be and Can I Prepay?

Every buyer will need to be clear on what their monthly payment will be and what the payment will include. Some mortgage lenders will require that all property taxes and home insurance be escrowed and included in the monthly mortgage payment. Without understanding your monthly payment amount, you will not be able to adequately analyze your budget to ensure you can afford the loan payment. You also want to ask if there are any penalties for prepaying your loan in an effort to pay it off early.

Each buyer will also have specific questions that relate to their financial situation. Be sure to write down any questions or concerns you may have about the mortgage loan process, especially if you are first-time home buyer. By being informed before committing to a loan, you will reduce your own confusion and the risk of defaulting on your loan and facing foreclosure.