Choosing a Lender · Los Angeles & Southern California
By Mark Cohen, #1 Mortgage Broker in the U.S. (2026 Scotsman Guide) · Updated September 2026
Quick Answer
Before you choose a mortgage lender in Los Angeles, ask about the APR (not just the rate), how long they can lock your rate, and whether they are a broker comparing multiple wholesale lenders or a single direct lender. Get Loan Estimates from at least three lenders on the same day so the numbers are comparable, and know that shopping around within a 45-day window only counts as one credit inquiry.
If you have already worked out how much house you can afford in Los Angeles, the next decision moves faster than most buyers expect: who you borrow from. That choice is worth real money. The right questions, asked before you commit, can be the difference between a smooth close and a rate you are stuck negotiating around for years.
Los Angeles adds a few wrinkles most national “questions to ask a lender” lists do not account for. You are choosing between big banks, online lenders, and local brokers who each work differently. And because home prices across Greater Los Angeles routinely push past the conforming loan limit, there is a real chance you will need a lender who is comfortable with jumbo financing, not just a standard 30-year fixed.
Broker or Bank? Start Here
Before you get into rates and fees, find out what kind of lender you are talking to. A mortgage lender is a financial institution that funds the loan directly. You repay that same institution based on the loan agreement. A mortgage broker does not lend money. Instead, a broker shops your loan across multiple wholesale lenders on your behalf and charges a service fee for that work, and some companies operate as both.
Neither structure is automatically better (source: Consumer Financial Protection Bureau), but they change what “shopping around” means in practice. Work with a single bank and you are seeing that bank’s rate sheet only. Work with a broker and one conversation can surface options from several lenders at once, which matters most when your loan does not fit a standard box, such as a jumbo amount, self-employment income, or a tight closing timeline.
The Core Questions to Ask Every Lender
What is my interest rate, and what is my APR?
These are not the same number. Your interest rate is the annual cost to borrow the money itself. Your APR folds in the interest rate plus points, broker fees, and other charges you pay to get the loan, which is why the APR is almost always higher than the rate (source: CFPB). Ask any lender to give you both, in writing, before you compare offers.
How long can you lock this rate, and what happens if we do not close in time?
Rate locks typically run 30, 45, or 60 days, sometimes longer, and they guarantee your rate will not move before closing as long as nothing changes on your application (source: CFPB). Ask what a lock extension costs if your closing slips, since extending a lock can get expensive and you want that number before you need it, not after.
When will I get my Loan Estimate?
Federal rules require lenders to send you a standardized, three-page Loan Estimate within three business days of receiving your application. It shows your estimated rate, monthly payment, closing costs, and taxes and insurance. Treat it as the baseline for comparing lenders, since the format is the same no matter who issues it.
Are you a broker or a direct lender?
Ask directly, and if the answer is broker, ask how many wholesale lenders they are comparing for your specific loan. This tells you whether you are looking at one institution’s pricing or a genuine market comparison done on your behalf.
What will my total closing costs be?
A low rate paired with high fees can cost more than a slightly higher rate with modest fees. Ask for the all-in number, not just the rate, before you decide anything.
Do I need to buy discount points?
Points let you pay upfront to lower your rate. Ask what each point costs, how much it lowers your rate, and how many years it takes to break even, since that math changes with every rate environment.
Will I need private mortgage insurance, and for how long?
If your down payment is below 20%, most conventional loans require PMI. Ask what it will cost monthly and what the actual path is to cancel it once you have enough equity.
Who services this loan after closing?
The lender who originates your loan is not always who you send payments to later. Ask whether your loan is likely to be sold to another servicer, since that affects who you deal with for the life of the mortgage.
Is there a prepayment penalty?
Not every mortgage has one (source: CFPB), but ask directly and get it in writing. If one exists, find out exactly when it applies, since a small extra principal payment usually will not trigger it, but paying off the loan entirely within the first few years might.
What is your current time to close in Los Angeles?
Closing timelines shift with lender volume and loan complexity. Ask for a realistic number based on loans they are closing right now in this market, not a generic industry average.
How to Compare Quotes, Not Just Rates
Federal consumer guidance recommends contacting at least three lenders before you decide, and there is a real financial reason to do it: rates can change daily, so Loan Estimates gathered on different days are not a fair comparison. Request them on the same day whenever you can.
When you line the Loan Estimates up side by side, focus on the numbers each lender controls, meaning rate, fees, and points, rather than taxes and insurance estimates that will be roughly the same no matter who you choose. A useful gut check is calculating the total dollar amount you would pay over five years on each offer, principal included, since that number tends to expose a low-rate, high-fee offer for what it really is.
One more thing worth knowing before you start calling around: within a 45-day window, multiple lenders checking your credit for a mortgage counts as a single inquiry for scoring purposes. Shopping around does not have to cost you credit score points.
Los Angeles Questions Worth Adding to the List
Can you handle a jumbo loan if I need one?
The 2026 baseline conforming loan limit is $832,750, but Los Angeles County’s high-cost area limit is $1,249,125 for a single-family home. Given typical purchase prices across Greater LA, it is common to land in jumbo territory even with a solid down payment. Not every lender underwrites jumbo loans the same way, so ask directly rather than assuming. See our 2026 conforming loan limits by county or our jumbo loan program page for more detail.
How well do you know Los Angeles County’s property tax and insurance quirks?
A lender who underwrites loans nationwide may not flag Mello-Roos assessments, earthquake or brush-zone insurance requirements, or how a reassessed tax bill affects your qualifying payment. A lender who works Greater LA regularly should be able to talk through this without missing a beat.
Get a Comparison Without Interviewing Five Lenders Yourself
As a mortgage broker, Mark Cohen shops your loan across CFG’s wholesale lender network instead of pricing it against a single bank’s rate sheet, so you get the comparison this guide describes without making a dozen calls. Start your rate comparison or get pre-approved to see where you stand.
Frequently Asked Questions
How many mortgage lenders should I contact?
Federal consumer guidance recommends at least three. Borrowers who shop around typically save thousands of dollars over the life of the loan, and different lenders can offer meaningfully different loan programs for the same borrower.
Will getting quotes from multiple lenders hurt my credit score?
Not if you keep it within a 45-day window. Multiple mortgage-related credit checks in that window are treated as a single inquiry by credit scoring models, so rate shopping does not multiply the impact on your score.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is typically based on information you self-report and have not yet verified. Pre-approval is based on information the lender has verified (source: CFPB). Lenders use these terms inconsistently, so ask what documentation was reviewed rather than relying on the label alone.
Do I have to use the lender my real estate agent recommends?
No. You are free to choose any lender, and comparing at least one outside option against your agent’s recommendation is a reasonable way to confirm you are getting competitive terms.
When should I start talking to lenders?
Before you are under contract, ideally before you are even touring homes seriously. Getting pre-approved early tells you your real price range and makes your offer stronger once you find a home, and you are not committed to any lender until you sign your final closing documents.
Is a lower rate always the better deal?
Not necessarily. A lower rate paired with higher points and fees can cost more over five years than a slightly higher rate with lower fees. Compare the total cost, not just the headline rate.
What is the conforming loan limit in Los Angeles County right now?
For 2026, the baseline conforming loan limit is $832,750, and the high-cost area limit for Los Angeles County is $1,249,125 for a single-family home. Loans above that amount are considered jumbo loans and are underwritten differently.