How to Select a Mortgage Lender

We’ve developed a comprehensive guide that will help you select the best mortgage lender to close your home loan.  But before we get into the steps you’ll need to take, let’s identify some of the attributes of a good lender.

Identifying a Good Lender

A good lender simplifies the process.  You’re developing a long term relationship with your lender, and whether your contact is a loan officer at a major bank or an independent broker, he or she should make you feel at ease during the application and underwriting stages of the process by laying out the necessary steps involved in a simple, straightforward manner.

A good lender keeps you informed.  A good broker or loan officer will contact you whenever the status of your loan changes or if any obstacles crop up that require your attention.  Some lenders will wait for you to call and ask about the status of your loan, which can delay the resolution of issues and keep your loan from closing on time.  Find a mortgage professional who is proactive about contacting you.

A good lender provides sound financial advice.  Your lender should be willing to make the difficult calls and give you the financial advice you need, truthfully, without trying to scam you into a loan that doesn’t fit your situation.

How to Select a Lender

Thousands of first time home buyers have successfully closed loans and bought homes without hitting any major snags.  You can, too.

Ask for referrals from other homeowners.  This is one of the most common and simple ways to find a mortgage lender.  Unless your neighbors bought their homes with cash, they worked with a local mortgage broker or loan officer at some point.  Ask your friends and colleagues to recommend someone.

Contact local banks.  Most banks provide home loans among the financial services they offer.  One of the simplest ways to find a mortgage lender is to simply walk into several local banks and inquire about the loan products they provide.  The standard fixed rate mortgage is one of the best home loan options available.  If your local bank offers this mortgage type, you may need to look no further.

Compare lenders through the internet.  If you want to broaden and simplify your search, use the internet.  Many sites, including this one, allow visitors to compare mortgage rates and loan options offered by multiple lenders at once, drastically reducing the time and effort required to identify a good lender.  This is one of the best new ways to research mortgage professionals, especially if you’re short on time.

When evaluating lenders, ask questions to determine whether they will meet the qualitative attributes mentioned above.  If not, keep looking. 

Don’t waste your time working with a lender who will add stress to your home purchase or refinance.  Hold out to work with the best.

Gretchen Wegrich

Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.