How to Choose a Lender in Washington: Questions to Ask + Red Flags to Watch For

Choosing a Lender in Washington Is More Important Than Most Buyers Realize

Most buyers think choosing a lender is just about the interest rate.

In Washington, it’s actually about:

• Reliability

• Communication

• Local knowledge

• And whether your deal closes on time

I’ve seen strong buyers lose homes — and contracts — not because they couldn’t qualify, but because the lender wasn’t prepared.

This guide will help you avoid that.

1. Why Your Lender Matters More in Washington Than Other States

Washington is a contract-driven state with tight timelines.

If your lender:

• Misses deadlines

• Can’t explain contingencies

• Doesn’t understand local forms

Your deal can fall apart quickly.

This is especially true in Pierce County, JBLM-area purchases, and competitive Tacoma neighborhoods.

2. The First Question to Ask: Are You Fully Underwritten or Just Pre-Approved?

Not all pre-approvals are equal.

Ask this directly:

“Has my income, credit, and assets been fully reviewed by underwriting?”

🚩 Red flag if the answer is vague.

A strong lender will already have:

• Reviewed paystubs / tax returns

• Pulled and analyzed credit

• Addressed potential issues before you shop

3. Questions Every Washington Buyer Should Ask Their Lender

These questions reveal experience, not sales skill:

1. How many Washington loans do you close per month?

2. Do you work regularly with Pierce County escrow timelines?

3. How do you handle appraisal issues in WA?

4. What happens if rates change mid-escrow?

5. How often will you update me and my agent?

6. What fees should I expect beyond down payment?

If a lender struggles to answer these clearly, that’s information — not attitude.

4. The Appraisal Question Most Buyers Forget to Ask

Appraisals matter a lot in Washington.

Ask:

“What happens if the appraisal comes in low?”

A seasoned WA lender should walk you through:

• Appraisal contingencies

• Renegotiation options

• Cash gap scenarios

Helpful read if you want to go deeper:
Appraisal Contingency + Low Appraisal Options in WA
 

5. Online Lenders vs Local Lenders: The WA Reality

Online lenders aren’t always bad — but here’s what I see:

Common online lender issues:

• No understanding of WA-specific forms

• Slow underwriting responses

• Missed escrow deadlines

• Poor communication with escrow and agents

Local lenders often:

• Know WA contracts

• Communicate faster

• Solve problems before they escalate

This difference matters when timelines tighten.

6. Rate Talk: What Actually Matters (Beyond the Number)

The lowest rate doesn’t always mean the lowest monthly cost.

Ask your lender:

• Is this rate locked?

• Are there points?

• What’s my payment with PMI?

• Are there temporary or permanent buydown options?

For buyers exploring this, here’s a clear breakdown:
Rate Buydowns (2-1 + Permanent) — WA Guide
 

7. Closing Costs: The Area Where Lenders Must Be Transparent

If a lender glosses over closing costs, pause.

Washington buyers should expect:

• Loan fees

• Escrow + title costs

• Prepaid taxes and insurance

• Recording fees

This varies by county and price point.

Full breakdown here:
Closing Costs Breakdown for WA Buyers
 

8. Communication Is a Qualification (Not a Bonus)

You deserve a lender who:

• Answers questions without rushing

• Explains things in plain language

• Updates you before you ask

• Coordinates with your agent

If communication feels shaky before you’re in contract, it won’t improve later.

9. Red Flags I See Too Often

🚩 “We’ll figure that out later”
🚩 No written loan estimate
🚩 Surprise fees mid-escrow
🚩 Slow responses once under contract
🚩 Blaming escrow or the agent for delays

These are patterns — not one-off mistakes.

10. Why I Care So Much About Lender Choice

When a lender struggles, buyers carry the stress.

My job is to:

• Protect your contract

• Reduce surprises

• Keep timelines intact

• Make sure you feel supported

That starts with the right lending partner.

11. How to Choose With Confidence

You don’t need:

• The “biggest” lender

• The flashiest ad

• The lowest teaser rate

You need:

• A lender who knows Washington

• A lender who communicates

• A lender who respects timelines

That combination closes homes.

12. Final Thought for Washington Buyers

Choosing a lender isn’t just a financial decision — it’s a strategy decision.

When the right lender and the right plan come together, everything feels steadier — even in a competitive market.

If you’re buying in Washington and want help comparing lender options or understanding what questions your situation requires, I’m happy to help you sort through it.

If you’re planning a move in Washington, I’d love to help you build a plan that feels clear, calm, and realistic from the start.

Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence