How to Choose a Mortgage Lender

Know the different type of Mortgage Lenders

• Mortgage Bankers: These lenders have their own warehouse lines and may service or sell your loan. They have their own in-house underwriting and processing to assist in the loan process.
• Correspondent Lenders: These Mortgage Lenders rely on larger to lenders to immediately sell your loan.
• Savings and Loans: Smaller community-based lending and worth seeking out.
• Mutual Savings Banks: Mutual savings banks are locally focused, like your S&L. 
• Credit Unions: Member-owned banks that offer competitive interest rates to shareholders. 

Check the Mortgage Lenders Reviews

• Check sites like Zillow, Yelp, and others to see how the Mortgage Lender has performed in the past.
• Check Social Media Sites like Facebook, Google+ and others to view customer comments.

Compare Rates from Different Lenders

• Taking the time to get various offers from different lenders is important. You need to feel comfortable with not only the rate and terms but also the mortgage lender.
• Once you have several quotes you can compare closing costs.  In the end, the lowest rate may not win. You need to compare the total cost of closing.
• Get informed on the difference between the Rate being offered and the actual Annual Percentage Rate (APR). The APR calculates all costs involved with closing the loan.

Make Sure to Ask Your Lender the Right Questions

• Make sure to ask the Lender what is the average time to close a loan. Many larger banks take longer to close than a smaller Mortgage Lender.
• Ask what the down payment requirements are for the loan program.
• Ask how you will be notified by the lender throughout the loan process.