If you’re buying in Indy this year, your lender matters just as much as the house.

In 2026, rates are hovering higher than the “2–3% era,” seller concessions are back in play, and creative financing (like buydowns) is everywhere.

The difference between a smooth closing and a stressful mess?

Asking the right questions up front.

So let’s break down the best lender questions Indianapolis buyers should be asking in 2026 — especially around rate locks, loan types, buydowns, fees, and underwriting timelines.

Why the Right Lender Questions Matter More in 2026

Mortgage Rates Aren’t “Set It and Forget It” Anymore

We’ve moved into a market where rates fluctuate quickly, and strategy matters.

If you haven’t read our latest rate breakdown, check out:
https://rootsrealty.co/blog/2025-mortgage-rate-update-indianapolis

Even though it’s a 2025 update, the trend discussion applies directly to what buyers are seeing in early 2026 — moderate volatility and rate-sensitive demand.

In this environment, the lender who explains options clearly is gold.

Question #1: What Rate Lock Options Do You Offer in Indianapolis?

How Long Can I Lock My Rate?

In 2026, common rate locks are:

• 30 days

• 45 days

• 60 days

If you’re buying new construction in Indy suburbs like Westfield or Avon, you may need longer.

Ask:

• What does a longer lock cost?

• Is there a float-down option if rates drop?

A float-down means you lock today but can adjust lower if rates improve before closing.

Not every lender offers it — and not every one explains it clearly.

Question #2: What Loan Types Make Sense for Me in 2026?

Should I Be Looking at FHA, Conventional, or Something Else?

In Indianapolis right now, we’re seeing:

• Conventional loans dominate for buyers with strong credit

• FHA loans help first-time buyers with lower down payments

• VA loans remain powerful for eligible veterans

If you’re unsure about down payment options, this guide helps:
https://rootsrealty.co/blog/down-payment-options-indiana-2026

But your lender should explain:

• Credit score requirements

• Mortgage insurance differences

• How each loan impacts your monthly payment

The goal isn’t “what’s trendy.” It’s what fits your financial picture.

Question #3: How Do Rate Buydowns Work in 2026?

This one’s huge.

Seller concessions are back in certain Indy price ranges, which means rate buydowns are popular again.

What Is a Buydown?

A buydown lets you lower your interest rate by paying upfront points.

In 2026, we’re commonly seeing:

• 2-1 buydowns (rate 2% lower year one, 1% lower year two)

• Permanent buydowns (lower rate for life of loan)

Ask your lender:

• What does a 2-1 buydown cost?

• Can seller credits cover it?

• What’s the break-even point?

This matters because if you plan to refinance in 2–3 years, a permanent buydown might not make sense.

Question #4: What Are All the Fees — Not Just the Rate?

Here’s where buyers get tripped up.

Ask for a Full Loan Estimate Early

Don’t just compare rates.

Ask:

• What are lender fees?

• Are there origination fees?

• What are underwriting and processing fees?

• Are there discount points built in?

Two lenders can quote the same rate — but one costs $3,000 more in fees.

Always compare total cost, not just the headline rate.

Question #5: What’s Your Underwriting Timeline in Indianapolis?

This is underrated.

In competitive situations (yes, they still happen in 2026 under $350K), speed matters.

Ask:

• How long does underwriting take?

• Do you fully underwrite before we go under contract?

• What could delay closing?

A strong lender can close in 21–30 days smoothly.

A slow one? 45+ days with stress.

In a balanced market, sellers still prefer buyers who can close clean and fast.

Question #6: How Stable Is My Pre-Approval?

There’s a big difference between:

• Pre-qualified

• Pre-approved

• Fully underwritten

If you’re serious, aim for a strong pre-approval.

Our Indianapolis First-Time Home Buyer Guide touches on this too:
https://rootsrealty.co/blog/indianapolis-first-time-home-buyer-guide-2025

Ask your lender:

• What documents do you need from me now?

• Will my approval hold if rates shift slightly?

• How do job changes impact this?

Surprises kill deals. Clarity protects you.

Question #7: What Happens If Rates Drop After I Lock?

This is 2026 reality.

Rates move. A lot.

Ask:

• Do you offer a float-down?

• Can I relock if rates improve significantly?

• Is there a fee to adjust?

We break down common rate myths in our podcast episode:
https://rootsrealty.co/podcast/the-interest-rate-lie-everyone-believes

One key takeaway? Waiting for the “perfect rate” often backfires.

But understanding your flexibility gives you confidence.

Question #8: What’s My Real Monthly Payment — All In?

This sounds basic, but too many buyers focus only on principal and interest.

Ask your lender to break down:

• Principal & interest

• Property taxes (Marion County rates vary)

• Homeowners insurance

• HOA dues (if applicable)

• Mortgage insurance

In Indianapolis, property taxes increased in certain townships between 2024 and 2025 — and those adjustments carry into 2026 escrow estimates.

Your lender should give you a realistic monthly payment, not a “best-case scenario” number.

Question #9: How Do You Communicate During the Process?

This one’s personal — but critical.

Ask:

• Will I work with you directly?

• Do you have a processor I’ll talk to?

• How quickly do you respond?

Buying a home in 2026 requires coordination between:

• Agent

• Lender

• Title

• Appraiser

You want someone who communicates proactively — not reactively.

Question #10: If You Were Me, What Would You Do?

This question changes the tone.

Instead of transactional answers, you get perspective.

A good Indy lender should say:

“If I were in your shoes, here’s what I’d prioritize…”

Maybe that’s:

• Keeping more cash reserves

• Avoiding max approval amounts

• Using seller credits strategically

• Skipping unnecessary points

You’re not just buying a rate. You’re building a financial foundation.

Indianapolis Buyer Reality in 2026

Let’s zoom out.

In early 2026:

• Median Indy home price is hovering around the high-$200Ks

• Inventory is improving compared to 2024

• Negotiation room exists — especially on fees and concessions

That makes financing strategy more flexible than in peak seller-market years.

You have leverage.

Use it.

Red Flags to Watch For With Lenders

Here’s what we tell our buyers over coffee:

Be cautious if your lender:

• Dodges detailed fee breakdowns

• Pressures you to lock immediately without explaining options

• Can’t clearly explain buydowns

• Is slow to respond during pre-approval

Clarity builds trust. Confusion builds risk.

The Bottom Line: Ask Better Questions, Buy Smarter

The best lender questions Indianapolis buyers should ask in 2026 revolve around:

• Rate locks

• Loan types

• Buydowns

• Fees

• Underwriting timelines

This isn’t about being difficult.

It’s about being informed.

In a market that’s stabilizing but still competitive in key Indy neighborhoods, smart financing strategy gives you an edge — without overpaying or overextending.

If you’re preparing to buy and want a team that coordinates financing strategy with real estate strategy, check out our buyer resources here:
https://rootsrealty.co/buy

Ready to explore Indy’s real estate opportunities?

Reach out to Roots Realty Co. and let’s start your journey.