Choosing Home Loan Lenders

Loan Terms

When you’re ready for a mortgage, there are a variety of home loan lenders ready to help you through the process. Because your mortgage is often the largest loan people request, it’s smart to take extra time to decide which lender is the right one for you. Consider three key elements to help you decide.

This is a loan you’ll have for 30 years, so comparing the offers each of the home loan lenders makes you is your first step. Before you can evaluate their terms, take the time to reflect on what’s most important to you in the process. A borrower who needs low monthly payments will view a mortgage offer differently than a borrower who needs an expedited loan closing.

In general, start with the interest rate. When all other factors are equal, you want the loan with the lowest rate because it will lessen your overall cost for the home. Be sure to review the fees your potential home loan lenders charge for the loan. Most of the fees are standard across the industry, but you can eliminate a lender from your search if they charge fees well beyond the competition for the same loan.

Lender Personality

A mortgage can be a lengthy process, so it’s important to work with home loan lenders you trust and respect. Beyond that, finding a representative with a personality you like will make for smoother interactions. It isn’t necessary to seek out a lender using the criteria you might use on an online dating profile, but make sure your lender doesn’t annoy you before you commit to working with them. Otherwise, you may find yourself avoiding your lender’s phone calls, hindering or delaying the process.

Company Reputation

Not all home loan lenders operate in a fair and ethical manner. Unfortunately, you can’t always tell from the mortgage offer or lending representative’s behavior. Instead, it’s a good idea to check with your state’s attorney general or the Better Business Bureau to discover any complaints against the lender. Keep in mind that some complaints may not be credible and the absence of complaints doesn’t always guarantee a squeaky-clean company. Going through this process will help you discover if a large number of borrowers experience the same issues with the company. If you want to avoid the issue, you can do so by searching for a different lender.

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