Choosing the right lender is an important step on your homebuying journey. Not only will it impact your costs as a borrower but also your overall experience when buying a home.
Mortgage lenders can vary quite a bit. Every company offers different interest rates and loan programs, and fees and customer service can be widely different as well.
How do you find the right lender for your home purchase? Here are the steps you should take.
Understand what loan type you need
There are many kinds of home loans, including FHA, conventional, jumbo and more. Each one has different requirements for borrowers. Study up on loan programs to determine which ones might work for you. Doing this can help you pinpoint a lender who offers what you’re searching for.
Ask for referrals
Ask your friends, family and colleagues for lenders they may have used when buying a home. We can also discuss local lending experts as you get started on your home search. Then, you can continue your research about available loan programs, rates and other details.
Check out online reviews
Look up customer reviews of the lenders you’re considering on multiple platforms. You can also look at the NMLS database to see if there are any legal or licensing issues with the lender.
Get preapproved and compare offers
Once you’ve narrowed your pool of potential lenders, apply for preapproval. Then, you’ll get a loan estimate detailing the terms and costs of the mortgage each company is offering you, which you can use to compare your options.
