Lending Guide

Step-by-Step Instructions to Choosing a Mortgage Lender

Step 1: Assess Your Financial Situation

Review your credit score and report to understand your creditworthiness.
Calculate your budget, including how much you can afford for a down payment and monthly payments.

Step 2: Research Different Lender Types

Identify the types of lenders available: banks, credit unions, online lenders, and mortgage brokers.
Each type may offer different rates, terms, and customer service experiences.

Step 3: Gather Recommendations

Ask friends, family, or real estate agents for recommendations based on their experiences.
Check online reviews and ratings for lenders to gauge customer satisfaction.

Step 4: Check for Licensing and Credentials

Ensure that the lenders are licensed to operate in your state.
Look for additional certifications or memberships in professional organizations.

Step 5: Compare Loan Products

Investigate the types of mortgage products each lender offers, such as fixed-rate, adjustable-rate, and government-backed loans.
Review the terms and conditions associated with each product.

Step 6: Request Quotes

Contact multiple lenders to request loan estimates.
Ensure the quotes include all relevant details like interest rate, fees, and the estimated monthly payment.

Step 7: Evaluate Interest Rates and Fees

Compare the Annual Percentage Rate (APR) and origination fees across lenders to identify the best overall deal.
Pay attention to points, which can lower your interest rate in exchange for upfront costs.

Step 8: Consider Customer Service

Assess responsiveness and transparency during your initial interactions with each lender.
Consider their willingness to answer questions and provide information clearly.

Step 9: Review the Fine Print

Carefully read the loan estimates and any other documentation provided by the lenders.
Look for prepayment penalties, closing costs, and any potential fees that could arise during the life of the loan.

Step 10: Make Your Decision

Weigh all collected information, considering both the financial terms and the customer experience.
Choose a lender that meets your financial needs and makes you feel confident in your decision.

Step 11: Lock in Your Rate

Once you've selected a lender, you may have the option to lock in your interest rate.
Confirm the lock-in period and any conditions associated with it.

Step 12: Finalize the Application

Complete the mortgage application with your chosen lender.
Be prepared to provide necessary documentation, including proof of income, assets, and debts.

Step 13: Prepare for Closing

Review the Closing Disclosure documents once they are provided.
Confirm that all terms align with your expectations before the closing day.

Following these steps can help ensure you choose a mortgage lender that aligns with your financial goals and provides a satisfactory borrowing experience.