How Will I Ever Find My Mortgage Lender?!
When you’re buying a new home, you might be surprised by how many people are involved in the process. From your real estate agent to the home inspector to the title company, there are many people who you are going to have to be putting your trust in to ensure that you get the home you want.
But as many people as you’ll have to work with, none are as important as your mortgage lender. After all, your lender is the one responsible for matching you with the best mortgage loan for your unique situation and for ensuring that you get the best rate possible. Remember, who you choose as your mortgage lender will impact your path to homeownership and your overall experience with that person will come rushing back at you with every monthly payment you make, so you want to choose wisely.
So, because of the important role your lender plays, you might be wondering – what’s the best way to find a mortgage lender? This guide will go over your options.
Ask for a Referral from Family, Friends, or Colleagues
Mortgage lenders provide a service that every homeowner has had to use at least once in their lives. So, there is a wealth of information out there from those closest to you. Start by asking the family members, friends, and co-workers you trust most for their recommendations. Find out who they worked with for their home loans and what their experiences were like.
Word of mouth referrals are among the very best ways to find a quality mortgage lender because people who like you won’t refer you to someone who they think might be unprofessional. If you keep hearing the same name mentioned more frequently than others, then you can move that lender to the top of your list of contenders.
Ask Your Bank About Mortgage Lenders
If you are planning on using your bank for your home loan, then you can ask them if they have a mortgage lender that they recommend, as most banks usually have good business relationships with at least a few. One of the benefits of asking your bank for a referral is that the bank has most likely previously worked with the lender, so their familiarity with each other can help ensure a smoother and quicker transaction.
Ask a Mortgage Broker
A mortgage broker works as a middleman between you and your lender. The broker’s role is to review your financial background, so they can help you determine your ideal loan type before you start submitting applications to lenders. A broker gets paid by the lender if the loan succeeds.
It is important to note that some brokers can act as great advisors, while others work simply to connect you with lenders. As a result, it’s always a good idea to vet any potential brokers before choosing one, so you can find the right one whose level of support aligns best with your needs.
Read Online Mortgage Lender Reviews
With so many review sites online, finding and reading reviews on local mortgage lenders near you is easy. When reading reviews, look for specific trends in complaints or praises. Try to find reviews on lenders who offer the type of services you are interested in. As always, take online reviews with a grain of salt, as not all reviews, both the positive ones and the negative ones, are legitimate.
Vet Every Lender You’re Considering
Regardless of how you get your referral or from whom, you need to vet every lender you are considering. Vetting is a vital step in the borrowing process because it’s the best way to protect yourself against predatory lenders. Here are a few safety checks you should perform when considering mortgage lenders:
- Visit the Nationwide Multistate Licensing System Registry to ensure your lender is licensed and in good standing in your state
- Visit the Better Business Bureau and look up your lender to see how they respond to complaints and to see their BBB rating
When comparing lenders, be ready to leverage competitors’ rates and ask tough questions. This will help ensure that you’re not only working with a lender you can trust, but that you’re also receiving the best loan terms.
