How To Pick A Great Mortgage Lender
November 19, 2017 Home Buyers

Let’s be honest, when buying a home, there are so many things to think about! One of the most complicated decisions you will likely make will be which lender to pick. Today there are tons of lenders out there ready to accept your loan application. But just because a lender accepts your application doesn’t mean they are the right one for you. Since you’ll likely be paying on this loan for years to come, it’s important to make sure you shop around and choose the right lender (and loan) that fits your needs. Here are five tips for picking the right mortgage lender.

1. Decide whether you need a mortgage broker

There are benefits to working with a mortgage broker because they have access to multiple mortgage lenders, which saves you time. However, there are some drawbacks you should be aware of when working with a mortgage broker. They earn their profits by arranging the deal between the lender and the new homeowner. So essentially, they are a middleman, which can work to your advantage, however. Good mortgage brokers will choose from the best performing banks, knowing which ones are most likely to close without a hitch.

2. Decide what kind of lender you wantchoose lender to buy home in san diego

If you are someone who prefers more personal customer service and a lender who knows your name, you would likely want to go with a smaller local lender. Some people prefer to get a loan where they are currently banking already, thus keeping all their accounts in one place. This is great for convenience, but this might not get you the best rate and terms. Researching the differences between larger lenders and smaller ones will help you decide which fit is best for you.

3. Ask around

A broker is not the only way to find mortgage lenders. Ask your friends, family members or coworkers who have purchased a home within the last few years about their lenders. Getting referrals from those close to you can help you cut through the sea of prospects to find someone you know you can trust.

4. Talk to your real estate agent

A good agent will not limit recommendations to his or her in-house lenders, and smart loan officers take especially good care of customers recommended by real estate agents. Since real estate agents do multiple transactions per year, that’s multiple lenders they come in contact with!

5. Research the lender’s reputation

No matter how you hear about a lender, it is imperative to do a background check. If you can get names of past clients, make sure you speak with them. Google them, check online reviews and don’t hesitate to bring up any questions you have with a potential lender. Learning as much as possible about who you might be dealing with can save you a number of headaches later on.

Most home buyers don’t realize picking a bad lender can reduce their chance of getting an offer accepted in the first place. In a competitive housing market, listing agents will encourage their sellers to pick offers from lenders with a better known reputation. Sometimes this is the main deciding factor when multiple offers are nearly otherwise identical.

Shopping around for the right mortgage lender can be daunting. There are numerous lenders available and more seem to be popping up all the time. It’s important to know what you’re looking for and to do as much research as possible.


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"11" Comments
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  5. Thanks for these tips on how to find a good mortgage broker. I agree that you want to consider their reputation first. My husband and I are looking for an experienced mortgage broker, so I’ll have to check their qualifications first.

  6. I like how you said you’d likely want a smaller local lender if you like more personal customer service when you’re getting a loan. I prefer to have somebody who can recognize me after I’ve been a few times. It’ll be good to find a lender who does that.

  7. It was really helpful when you said that you need to do a background check. My husband and I are wanting to get our very first home so we can have more room for our 3 kids. We’ll make sure to keep this information in mind as we search for a mortgage lender!

  8. It’s interesting to know that a real estate agent could give you the advice to choose the right mortgage broker when you are thinking about buying a house. My brother is thinking about buying his first house, and we are looking for advice to help him choose a mortgage broker. I will let him know about your recommendations to help him during this process to find the right house for him.

  9. You made a great point about talking to your real estate agent and seeing if they have any recommendations for you. My husband and I are looking for a mortgage service that can help us afford our first home together this summer. We will keep these tips in mind as we search for a professional that can help us best.

  10. I liked your advice about how one should do a background check before choosing a mortgage lender. My sister wants to get her first house because she will be finishing college soon, and she needs to get a loan. I will pass her the article so she can be aware of the thing she must consider when looking for a lender.

  11. Thank you so much for pointing out that so many people have mortgages so there are plenty of people around you that can talk to to get referrals. About a week ago, I was talking to my sister, and she mentioned that she wants to build her first home so that she can heave the perfect home to raise her kid in. I will have to tell her about your advice and help her look for mortgage broker services.

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