June 27, 2019
Choosing a Mortgage Lender
It can be very challenging navigating today’s lending space, especially as a first time home-buyer. Do I go to my local bank? Should I hire a mortgage broker? What about getting a mortgage online?
I receive many of these questions from my clients.
I believe strongly in the power of a personal recommendation for just about everything in life; and I am happy to provide contact information of lenders who have successfully worked with my clients in the past. Leveraging friends and family to ask them about their experiences with obtaining a mortgage may also lead to a great introduction.
Some things I share with my clients to consider when choosing a lender: 1) Most lenders are very competitive on their rates. Unless you are a more complex borrower (some examples: self-employed, struggling credit, second home, investor), lenders have access to similar products with similar rates, so “shopping around” will likely yield competitive results, 2) During the home-buying process, you will speak to your lender daily. Make sure he/she is someone you enjoy connecting with, 3) Getting a lender local to your market is key. There are nuances in every city and state and a local lender can navigate this with ease, 4) Your lender should attend your closing. Ask about this up front. My experience is that a lender “too busy to attend closings” is not a lender who will promptly answer your phone calls or questions throughout the process. As a first time home-buyer, you will need someone who is attentive.
Do your diligence and trust your gut when selecting a lender. Remember, your real estate agent is a resource. Ask for recommendations and get his/her opinion.