What You Should Know When it Comes to Finding the Right Lender

When it comes to purchasing a home, there is no shortage of decisions to be made. In fact, the entire process is filled with choices that could potentially change the experience and outcome of your purchase. These can include everything from finding the right realtor, deciding the part of town you want to live in, zeroing in on the perfect house and, in many cases, finding the right lender.

While many realtors have lenders or mortgage brokers that they typically recommend, the choice is ultimately the buyer’s to find the right fit for them— and often, the “right” lender can depend on circumstances, location and even work styles.

However, at the end of the day, there are a number of things buyers should be looking out for when it comes to finding the right lender for them. These can make the process as painless as possible, and ensure that the buying experience is more of a pleasant one.

Ask Around

While your real estate agent will almost definitely have recommendations for lenders that they prefer working with, it’s always a good idea to ask friends and family about the lenders that they used. Is there someone that they can recommend that gave incredible service? Is there someone they wouldn’t recommend based on a poor experience? Utilize your network to get real-world, honest reviews and help to point you in the right direction.

Find a Great Communicator

Buying a new home can mean choosing between multiple paths, as well as a lot (and we do mean a lot) of paperwork. Whether it’s a broker, or you’re working directly with a lender, working with someone who values communication can make the process exponentially easier. By teaming with someone who responds quickly, actively helps you gauge which options are best for you, and keeps you in the loop every step of the way, you’ll be able to ensure there are minimal surprises and that you’re prepared for any upcoming asks.

Consider a Mortgage Broker

Mortgage brokers are a phenomenal resource when it comes to finding the right loan for you. Instead of going to a single entity or bank to compare options, a broker can do the heavy lifting for you, helping to qualify you and quantify your options. While your mortgage broker isn’t the ultimate decision maker when it comes to getting your loan, they’re an excellent source of information, especially in regards to walking buyers through the process, giving feedback on what they’ve seen in the past, and often, a point of contact that you can reach out to anytime (even off business hours).

Hunt for Competitive Rates

Finding the right rate for your loan is one of the most important decisions you can make during the buying process, right next to finding the right house. Your rate and down payment decisions can not only play into how much you’re coming out-of-pocket immediately, they can also greatly affect how much money you’re spending on your home over time. Work with a lender that is competitive in their rates, and can explain to you the different options that you have to make that rate as low as possible. After all, no one wants to spend more than they have to, and ensuring you’re getting the best deal— especially with such a high-dollar purchase— is crucial.

Find a Process & Timeline that Works for You

While many of the milestones are the same, different lenders can have different ways of going through the loan process. Whether it’s a great online system that allows you to upload your documentation easily, or you’re required to email a vast majority of your docs to a representative, make sure that you’re working with someone who gives you an ample “heads up” on what will be required, and that you have a rundown of what that process is going to look like. Most importantly, find a lender that can meet the timeline that you need to purchase your new home.

Although there are a number of factors that go into finding the right lender, what’s most important is that you find a partner that you can trust. Through recommendations, reviews and talking to your network, you can find a mortgage broker or direct lender that can help you to hit your home buying milestones as quickly and easily as possible. More than anything, the right mortgage broker or direct lender can help you knock your biggest goal out of the park— calling that new home yours!