If this is your first time buying a home, Besides just searching “mortgage lenders near me”, you may not know where to start when it comes to finding a great lender. As you’ll see in just a minute, there’s more to a lender than just their interest rate. This is why we give all of our clients at least 3 names of lenders to interview, which helps ensure they find the best fit for their needs.
Look at their rates
First thing that comes to most people’s mind when comparing lenders is looking at the interest rate that they are offering……and deservedly so. A seemingly small difference of just ¼ of a percentage point on a $250,000 loan could cost you over $10,000 over the life of a loan. This should be your first step in your comparison of lenders.
Look at estimated fees
Next you will want to get a Loan Estimate from each lender that you are comparing. This will break down all the miscellaneous fees, or closing costs associated with the loan as well as show what your estimated monthly mortgage payment will be. While these are not hard numbers, it will give you a good basis to compare lenders who have similar interest rates.
What’s their service like?
While saving money is always on top of everyone’s mind, you will also want to make sure that you select a lender who is able to give you quality service as you will be working closely with them until you close on your home. Things to look for are: Do they truly listen to you and your needs? Do they take the time to explain everything to you? Are they easy to get a hold of and do they return your calls/emails/texts promptly.
Do they work with specific loans?
There are specific loan products for people that meet certain criteria. Examples are first-time home buyers, veterans, physicians, first responders, etc. If you think you qualify for a specific loan, it’s a good idea to find out if that lender has plenty of experience in that loan product.
Another way to make sure that your future lender will be a good fit for you is to look up online reviews. There are many review sites available, but probably the most popular and reliable are Google Reviews, Yelp and Zillow.