Introduction

Buying a home is a significant milestone in your life, marking a transition from renting to homeownership. It is an exciting yet complex process that involves numerous steps. One of the most important advisors in this journey is your mortgage lender. The role of a mortgage lender goes beyond quoting and locking an interest rate. Mortgage lenders are instrumental in helping you secure your mortgage financing in a timely and orderly fashion. They make both the costs of the mortgage and the process of getting the loan transparent and easy to understand. They are your loan advisors and will help fix any unforeseen issues that come up when you are getting a mortgage.

If you pick your lender based only on the rate, then you may have no one to help you with all the other steps involved in getting a mortgage. As with everything in life, you will get what you pay for!!! Basing your decision only on an interest rate may lead to:

• Not getting your calls, texts, emails returned right away;
• Not getting your questions answered;
• Getting handed off to other staff members;
• Something goes wrong….and there is no one to fix it;
• Delayed closing and paying the costs associated with the delay;
• Getting surprised with fees and costs at the closing; and
• …..and in the worst case a LOAN DENIAL.

You may think that saving 0.125% on a rate is the most important thing to you until you need to pay the cost of a messed-up mortgage process!!!

Here are Ten Steps that will help you pick the right person to help guide you with your mortgage loan:

1. Research Mortgage Lenders: The first step is to research potential lenders. Seek recommendations from friends, family, or colleagues who have recently purchased a home and gone through the process. Personal experiences can offer valuable insights into the professionalism and efficiency of a mortgage lender. Don’t just look for people with positive experiences. Also try to find people who struggled with their mortgage so that they can provide insight on difficulties to avoid. Additionally, your real estate agent may have trusted lenders that they work with regularly.
   
   
2. Check their Online Footprint: Create a list of potential lenders and explore their online presence to gather information about their offerings, interest rates, and customer service. Look for lenders who have a transparent and user-friendly online presence, as this often reflects their commitment to customer satisfaction. Look beyond the interest rates and fees and try to consider their reputation, customer reviews, and responsiveness. A lender with a solid track record and positive client feedback is likely to provide a smoother and more reliable experience. In today’s world, it is unthinkable that a mortgage would not have online testimonials to tell their story. Check out my 300+ online testimonials below:
   • Google (115+ reviews)
   • Yelp (185+ reviews)

3. Evaluate Customer Service: Exceptional customer service is vital when dealing with a mortgage lender, as the homebuying process can be complex and stressful. Assess the responsiveness and professionalism of the lenders you are considering. Contact them with questions and observe how quickly and thoroughly they address your concerns. A lender with excellent customer service can make the mortgage process smoother and more enjoyable. Make sure that you understand who you will be working with. Are you going to be working with the person who begins that process with you or will you be handed off to a team member once you are in contract? If something goes wrong and you hit a bump in the road, who is going to fix it. Be careful of online lenders, big branch banks and mortgage lenders will large teams. You could be handed off several times during the mortgage process instead of working with an experienced professional from beginning to end.
   
   
4. Investigate Reputation and Reliability: The reputation and reliability of a mortgage lender are paramount. Look for lenders with a strong track record of successfully closing loans and satisfying their customers. Check for any disciplinary actions or complaints against the lender through relevant regulatory bodies. Check for industry certifications and affiliations, as these demonstrate a commitment to professionalism and ethical practices. SA reputable lender is more likely to provide a transparent and trustworthy mortgage experience. Check out my A+ rating at the Better Business Bureau.
   
   
5. Communication and Accessibility: Effective communication is crucial in the home-buying process. Choose a mortgage lender who is responsive, transparent, and readily available to address your queries. Being able to communicate comfortably with your lender fosters a positive and collaborative relationship. To help you with a winning offer, your mortgage lender needs be available when you are shopping for a home to update your pre-approval letter and speak to seller’s realtor about your qualifications…which is usually after 5pm and on weekends! Watch out for online lenders and big branch banks whose mortgage lenders work 9am to 5pm.
   
   
6. Understand Their Process: Every mortgage lender may have a slightly different process. It’s essential to understand how they handle pre-approvals, loan applications, approvals, and closing. A transparent lender will walk you through each step, providing clarity on timelines and requirements.
   
   
   1. Check for Preapproval Options: Seek mortgage lenders that provide a straightforward pre-approval process that can be done quickly, as this can give you a competitive edge in a competitive housing market. A pre-approval letter demonstrates to sellers that you are a serious and qualified buyer. To put in an offer on a home, you will need a pre-approval letter.
      
      
   2. Review the Closing Process: The closing process is the final step in securing a mortgage. The efficiency of this process can impact your overall homebuying experience and peace of mind. Inquire about the average time it takes for a lender to close a loan and the steps involved in the closing process. A lender with a streamlined and transparent closing process can help you avoid unnecessary delays and complications.
      
      
7. Explore Loan Options and Special Programs: Beyond traditional mortgage options, some lenders offer special programs or incentives that may be advantageous to certain borrowers. Investigate if the lenders on your list offer any first-time homebuyer programs, down payment assistance, or flexible qualification criteria. These additional offerings can make a significant difference in the overall affordability of your mortgage. Even if you do not qualify for or choose to use a program, your mortgage lender should be presenting you with options. If your mortgage lender is discussing options with you, then they are working hard on your behalf and will likely do a better job for you overall. Check out some of Lakeside Bank’s loan options.
   
   
8. Consider Local Lenders and Mortgage Brokers: While national lenders are widely accessible with household names, do not overlook the benefits of working with local lenders or mortgage brokers. Local lenders may have a better understanding of the regional housing market and can provide personalized service. By being a local expert, you mortgage lender will have better insight into closing costs and fees (Check out this article on closing costs). Mortgage brokers, on the other hand, can help you navigate a variety of lenders, potentially finding you the best deal. By being a local community bank, Lakeside combines the personal service and unique products of a local lender with access to all the national lenders of a mortgage broker.
   
   
9. Compare Interest Rates and Loan Terms: Interest rates are a crucial factor in choosing a mortgage lender, as they directly impact the overall cost of your loan. Compare the interest rates offered by different lenders, but don’t stop there. Consider the loan terms, including the duration of the loan and any associated upfront fees. A slightly higher interest rate with favorable loan terms may be more advantageous than a lower interest rate with less favorable terms. Check out this article on APR and the true cost of borrowing to get more information.
   
   
10. Don’t Take My Word For It: Remember that you are picking an advisor for the most important financial decision of your life and not just a rate. See what these noteworthy publications have to say about picking a mortgage lender and see how it compares with the advice listed above:

• • Time Magazine
  • Forbes
  • Money Tips

Conclusion

Choosing the right mortgage lender is a critical step in the homebuying journey. By researching and comparing potential lenders, you can make an informed decision that aligns with your personal and financial goals. Remember to prioritize customer service, reputation, and reliability in your selection process. Saving a small amount of money on your rate, could cost you hundreds or thousands of dollars if you pick the wrong mortgage lender. With careful consideration and research, you can confidently embark on the path to homeownership with a mortgage lender that meets your needs and expectations.