How to find a mortgage lender

Quick insights

• You can consult your family, friends, local mortgage companies or do your own research to find a great mortgage lender.
• Important characteristics of a mortgage lender include experience, average time to close, customer service, communication and responsiveness.
• When comparing mortgage lenders, consider factors such as loan estimates, interest rates and APR and additional fees.

You’re in the market to purchase a new place you can call home—how exciting! Applying for a mortgage is an extensive process, but with the right team, you can navigate the home loan process with a little more ease.

Whether you’re a first-time homebuyer or have been through this process before, it’s important to have a good real estate agent and mortgage lender. You will most likely be working with your future mortgage lender for years to come, so it’s crucial to put in the work to find a mortgage lender who has your best interest in mind.

Where to look for a mortgage lender

You can find a mortgage lender from referrals, conducting research online and by visiting local mortgage companies in your area. A good starting point is to reach out to family and friends who have gone through the process and ask for a few referrals. Some may prefer to go with recommendations from their close network while others will prefer to conduct their own research. You can also talk to your real estate agent, consult with your bank and do online research.

What makes a good mortgage lender

Buying a home is one of the most expensive purchases you could make in your lifetime. It may be a good idea to partner with a mortgage provider to guide you through this important, complex process.

A good mortgage provider makes it seamless to manage your mortgage, whether it’s making a monthly payment or obtaining necessary documents throughout the loan. A reputable mortgage lender invests in technology to run their business efficiently such as their website, mobile app or phone system for customer service inquiries.

It’s crucial to secure a competitive rate, but you also want to have a knowledgeable and diligent mortgage lender working by your side. It’s even more helpful if the lender has a local presence. Local mortgage lenders and online mortgage lenders should provide top-notch service and focus on what’s most important to you.

Things to watch out for when selecting a mortgage lender

You may want a lender who goes the extra mile. That can mean a few things, such as being fully transparent throughout the underwriting and approval process and delivering results that align to your goals. If a lender fails to deliver on something you want during the homebuying process, this could be a red flag.

Top mortgage lenders will maintain a good relationship with you from initial preapproval all the way until you get the keys to your new house. Bonus points if the mortgage lender keeps in touch with you post-closing.

How to compare mortgage lenders

While shopping around for a mortgage, you can compare mortgage lenders based on some main criteria:

• Loan estimates
• Interest rates
• Mortgage options
• Customer service
• Experience

Consider the loan terms, down payment requirements, mortgage points, mortgage insurance and closing costs. All these factors can greatly impact your upfront costs and long-term expenses.

Pay close attention to an advisor’s experience. The number of customers they have helped and the types of mortgage loans they’ve originated can demonstrate well-rounded expertise. For instance, does the advisor have experience originating VA loansec-va-hl000068, Jumbo loansec-jumbo-loans-up-to-85ec-jumbo-loans-up-to-85 or out of state transactions?

What to ask a mortgage lender

You may be wondering what to ask mortgage lenders to help you choose the right provider. We've compiled several questions you can use to find a great mortgage company.

• What type of mortgage loans do you offer, and what is the best option for me based on my financial situation and future goals?
• How quick is the preapproval process?
• What is the interest rate and APR?
• What documents and paperwork do I need for approval?
• What additional costs will I have to pay at closing?
• Do you offer an online closing experience?
• What is your average time to close?
• What will my monthly mortgage payment be? What portions will go toward principal, interest, taxes and insurance?

How do I choose a mortgage lender?

When choosing a mortgage lender, evaluate the reputation of the firm. Are they a cost-cutting firm or a full-service operation? You can also contact the Better Business Bureau (BBB) to conduct more research on mortgage lenders and look at posted reviews.

Making your final choice may be difficult. It can be easier if you’re confident that the lender has experience successfully closing on the type of mortgage loan you need and prioritizes what matters to you.

In summary

Mortgage lenders can be found online or in-person. Great lenders fully understand the long-term value of a satisfied client and will do their best to deliver results and communicate according to your preference. Building a relationship with your mortgage lender requires open communication, honesty, appreciation and mutual respect. Regardless of how you choose one, the experience you have with your mortgage lender is sure to be memorable.