Finding the Best Mortgage Lender

Mortgages have been stealing the headlines these days, from the beginning of the crisis through the anticipation concerning current financial reform. But there’s one thing that hasn’t changed – if you want a mortgage loan, you need to find a lender. With so many banks to choose from, you may feel confused and overwhelmed. If you’re looking for your mortgage lender, here are some tips to help you find the one that’s right for you.

Mortgage lender search

Step one is to search the Internet. You’ll be asked a few basic questions, like the property type, the home value, and the kind of mortgage rate you’re looking for. Then you’ll be matched with lenders who do business in your area who will give you quotes and relevant information. Next, visit any brick and mortar institutions in your neighborhood, especially the bank where you already have your account. Many offer lower preferred rates to existing customers.

If you’re working a realtor, ask her for lender suggestions. She’s been around the closing block a few times and can offer great tips on who to, and who not to, use. Warning: Don’t be compelled or pressured to take her suggestion. Her recommendation is just another quote for you to compare with the others.

Make a list of the different lenders, and what they’re offering, so that you can compare them side by side. Remember to include the various closing costs, application fees, APR, etc. so you can compare every aspect of the potential loan. Also request information about the application process, the documentation that you’ll need, and how long the entire process will take. Be wary of anyone who promises you a speedy closing. As a result of the recent mortgage crisis, every aspect of acquiring a home mortgage is taking longer to process. Plus, in Congress’s new legislation, it’s incumbent upon lenders to make sure that you have the ability to repay the loan, so they’ll be doing their due diligence.

Doing better business

Once you have a list of lenders, narrow it down to three. Then, check their records with the Better Business Bureau. When you type in the name of the organization you’re researching, you’ll have access to a reliability report, which rates the company from F to A+. Then you can scroll to read the specific complaints, and whether they’ve been resolved.

If the offers are comparable, trust your intuition, and select the person with whom you feel most comfortable. You’re going to be in a close relationship with the loan officer until your mortgage is funded, so make sure it’s someone who you can easily call to field any questions. If someone doesn’t return your calls, or is short with you, you won’t have a good experience.

Now that you’re armed with the information, it's time to find your mortgage lender. Choose the bank that offers the best deal, and a lending officer with whom you feel comfortable. Then the only headline you’ll be seeing is “mortgage successfully closed.”