Mortgage loans are one of the most difficult contracts a consumer can sign. Not only is the sum of the loan often very large, but there are hundreds of variables to get right. So instead of wondering if you really need to pay for this, or if you should have opted out of that, ask your lender these questions in advance:

• What is my interest rate and and term of the mortgage?

Sounds simple, but this is the first thing any buyer should clear up. You don't want any surprises down the road.

• What is my monthly payment for principal? For interest?

Your monthly payment consists of two parts -- principal and interest. Ask your lender what the dollar amount of each is forecast to be.

• What is my APR?

Your annual percentage rate is the total annual cost of your mortgage with all fees and costs factored in. APR is one of the best ways to compare lenders.

• Am I paying any points?

Paying discount points is a way to lower your interest rate. Each point lowers your rate by a certain percentage. Make sure you know if you are paying points, and why or why not.

• Where is my Good Faith Estimate?

Your lender is required by law to provide you with a good faith estimate within three days of processing your application. This estimate is a rough figure of the total cost of your loan.

• Is my interest rate fixed or adjustable?

Fixed rates remain the same for the entire length of your loan. Adjustable rate mortgages (ARMs) fluctuate over the years.

• If you have an adjustable rate, what are the terms?

Adjustable rate loans are often quoted on a 5/1 or 7/1 basis. This means the rate is fixed for the first five years and than fluctuates every year after that.

• Can my quoted interest rate change by the time we close?

Make sure your quote does not change before the documents are signed. Ask for a 'locked in' rate.

• Do I live in an escrow or attorney closing state?

Ask about the closing process.

• Is there a prepayment penalty?

Prepayment penalties are a lenders guarantee to make some money off of the loan. But this can change any plans you have of refinancing or paying off early. Ask about this clause.

For more information on home buying visit www.hud.gov or www.bankrate.com.