10 Things To Consider When Choosing a Mortgage Lender

If you are shopping around for mortgage lenders, perhaps researching the mortgage rates available to you, it's important to know what qualities you should look for. 

Remember, it's a personal choice, but these ten attributes will certainly guide you.  Selecting a Realtor you can trust will ease the process and you can read more about my background here.

A mortgage lender is essentially the bank/credit union that will be giving out your mortgage loan after evaluating your application and credit history. It is essential that the lender you choose is trustworthy and capable of giving you the mortgage loan that best suits your needs. Sound mortgage lenders will generally be licensed mortgage brokers, but not all mortgage lenders are also mortgage brokers.

Here are some qualities to look for:

1. Find Someone with Relevant Experience

No matter what loan types a company sells, their reputation depends on the quality of their customer service. You want to work with a mortgage lender that has years of experience because mortgage loans are complicated. 

A good indicator is also strong reviews on a lender's website or Facebook page like our go-to, Ben Cohen.

2. Choose a Licensed Mortgage Broker

A mortgage broker can shop around for different lenders for you and advise you on what mortgage loan is best for you based on your needs and situation. A mortgage broker can also help you if mortgage companies are unwilling to work with you because of your credit history, which will be determined by your credit report.

There are many home loan products to choose from that will help you achieve an ideal monthly payment in combination with a loan amount.  It's all a math equation that your lender can explain to you. 

3. Confirm They Offer a Reliable Service

Being able to get in touch with your mortgage lender is very important, especially when it comes time to close on your mortgage loan. The lender that gives you excellent customer service is more likely to provide you with a mortgage loan that meets your needs. 

For example, Ben Cohen and his team are on 7 days a week.  In a competitive market, that's key so you can always get your pre-approval letter prior to putting in an offer.

4. Decide whether you want a big company or small mortgage lender

Both have their benefits. Small mortgage lenders tend to be more flexible and personable, but big mortgage lenders tend to offer lower mortgage rates and fees because they can charge higher interest rates. The mortgage lender that's right for you is the mortgage lender that offers mortgage rates and fees that are comparable to other lenders.

My team and I prefer Guaranteed Rate because they're well-known and regarded in Chicago.  You can always find my vendor recommendations on my resources page.

5.  Choose a Brokerage with a good reputation

This can be hard to determine without doing extensive research, but a mortgage lender with a good reputation is more likely to give you a mortgage loan that meets your needs.

You can start this process by reading reviews about mortgage lenders online or asking around. Whether it's Facebook reviews, press write-ups, or personal references, ensure you receive information about what it's like to work with this person.

You can always search for them on Instagram as well to see what their online presence is like.

6. Find someone known for their integrity

Chances are someone that's been in the business for a while is well-known and trusted.  However, trust your gut.

It's important that your mortgage lender is upfront about mortgage rates and fees because mortgage rates change regularly. If your lender is not transparent about lending practices, what else might he not be honest about?

7. Search for a lender who's willing to get creative

The mortgage lender that often has the mortgage deals that save you the most money is more likely to give you a mortgage loan that suits your needs.

For example, there are jumbo loans for loans over $647,200.  However, there's also an option to pull two mortgages on a home.  It all depends on the lifestyle you choose and the monthly payments you want.  A good lender will walk you through all of the options. 

8. Look for fair mortgage lending practices

A mortgage company's business model should be centered around mortgage lending, not mortgage lending, and other related products. Mortgage lenders who try to get mortgage borrowers to purchase mortgage insurance or other secondary mortgage products are more likely to have an interest in signing mortgage borrowers up for higher interest rates.

9. Create a team 

Creating a dream team of a broker, lender, and real estate attorney can ensure a seamless real estate transaction.  For example, we frequently work with Ben Cohen from Guaranteed Rate. 

I always recommend several lenders and attorneys for my clients to choose from so they can craft their own dream team. 

10. Consider someone local

Having a mortgage broker that's close to you can be beneficial because it means that they're more accessible than lenders who are further away. 

Particularly, since the Chicago real estate market is so competitive, a local lender can give you a leg up on the competition.  You can also ask mortgage brokers that are local to you for mortgage lending references.

Ready to get started?  Contact me, and let's see some properties (ideally after you are pre-approved by your lender!)