5 Ways To Find A Good Mortgage Lender
While these tips are not in any particular order, these are the most common answers collected via surveys from the Consumer Financial Protection Bureau (or CFPB), asking consumers about which mortgage shopping methods worked best for them. Here are the top five answers that the CFBP receives regularly:
Comparing rates and quotes from lenders online is one of the fastest ways to get information about lenders. You can also find reviews online from the lender’s previous clients as well. This way you can get an idea of what they are like long before you ever contact them.
#2: Family, Friends and Colleagues
Recommendations from your friends, family, and the people you work with is a great way to find a lender because they will know you well enough to comfortably provide honest opinions about their service providers. They just might point you in the direction of the next lender you want to interview.
#3: Builders and Real Estate Agents
While getting a pre-approval is a good thing to do before your home search begins, many people connect with builders or real estate agents to get their advice on the local market before they start considering lenders. Since real estate agents and builders maintain strong connections to local lenders, they will most likely point you in the direction of a lender they have worked with before. If you are comfortable with your agent and trust their recommendations, this can be a very reliable way to find a good lender.
#4: Your Bank
Another way that many people find convenient is getting a mortgage from their bank since this keeps all their accounts in the same place. But just because a company is good at banking, doesn’t automatically make them a good mortgage lender. You will be able to compare the quote your bank gives you with other rates online to see if it is a good deal, but make sure you ask your bank about loan processing to figure out how long it will take to close. Many real estate agents will have compiled a list of relevant questions you can ask the loan officers at the bank, and they might even call them on your behalf if you prefer.
#5: Financial Planners
Like real estate agents and builders, the most credible financial planners will always maintain strong connections to local lenders. Some financial planners work for larger companies with mortgage operations, which they are obligated to refer you to. Make sure you dig a little and research whether or not this would benefit you the most by comparing their rates and process time.