How to Choose a Mortgage Lender

How to Choose a Mortgage Lender

Mortgage lending is an ultra-competitive business.

Loan officers with fancy titles and lenders with special incentives abound.

It can be difficult for someone who does not deal with mortgage matters on a daily basis to choose a lender to apply with for a mortgage.

In fact, it can be downright difficult to decide which lender to go with. Doing your research or homework beforehand will help you make a clear cut decision.

The following tips, however, should provide some assistance so that consumers can make an informed choice in the end.


Obtain References

Many people begin their mortgage process by talking to friends and acquaintances about their experiences with particular lenders.

This is a great way to obtain references about various lenders.

If one particular lender keeps coming up and has rave reviews from people you know, you might consider checking into this lender to begin with.

Be sure to ask plenty of questions such as fees and additional costs.

You’ll benefit from being educated about various lenders before you even speak with them.

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Researching online is a great place to begin your mortgage process too.

You can learn about various home loans and rates.

This allows you to remain anonymous, which can be preferable when you are merely in the information-gathering stage of your search.

You don’t necessarily want to field phone calls from lenders when you only want to learn the basics.

Also, be sure to check the Better Business Bureau to see if there are any complaints about the firms you intend to contact.

This can also help you make an informed decision about who to do business with.


Visit Mortgage Brokers

When you visit brokers, be sure to ask about how they obtain their commission and what it’s based upon.

You want to be sure that you aren’t steered into a loan that isn’t right for you.

You may also want to make sure that your selected lender uses important software to help them determine your mortgage loan eligibility.

Finally, don’t allow a great loan officer to blind you to the loan itself or the brokerage.

Many of these loan brokers are excellent sales people. Just because you develop a positive relationship with one shouldn’t cause you to take your mind off of the big picture–getting the best mortgage and rates you can find.


Learn the Tools They Use

Not only it is important to visit the mortgage broker, it is important to learn how they work and the type of tools they use to evaluate their loan eligibility.

For example, with bank statement mortgage loan program for self employed borrowers, all is required is 12 to 24 months of bank statements.

There are various tools out there that many brokers or mortgage lenders uses to evaluate the potential borrower.

If you are able to learn more about the broker or the financial company, it will help boost your confident and find ways to help make the process easier.


You should be very selective in choosing the right mortgage lender. You don’t want to struggle with making payments and run the risk of losing your home. A foreclosure on your credit report is very damaging.



“A Look Behind The Curtain: How to Choose a Mortgage Lender”, Forbes,

“Solutions LoanDecisions Originator Solutions Pricing & Eligibility”, LoanLogics,

Author: Erik Emanuelli

Hi! I am Erik Emanuelli : entrepreneur, traveler and blogger. You can follow me on Twitter, add me on Facebook or circle me on Google.

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  1. When you will have a conversation with a mortgage broker, ask about interest rate as well besides that never ignore question about credit rating. If you have a bad credit rating ( old defaults, unpaid bills ) lenders may refuse your mortgage application. Great informative post, worth to read.

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  2. Don’t forget to ask the following questions

    1. How do you decide which loan is best suited to my personal situation?
    2. Do you charge a brokerage fee for getting my finance approved?
    3. Do you offer a range of different lenders?
    4. How much of a deposit do I really need to obtain a loan?
    5. What impact will my credit card limits have on my borrowing capacity?

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  3. That’s a good idea to visit mortgage brokers. I am looking for a good mortgage lender right now, but I haven’t done that. It’s true that I don’t want to be steered into a loan that isn’t right for me. I’ll make sure that I visit some brokers this week, thanks!

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  4. Thanks for Information about Mortgage Lender.
    Your Article is impressive and very informative. I am now regular visitor of your website and bookmarked it.

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  5. Great article .. Thanks for sharing so much information about this.. It’s not always easy to find a mortgage lender. I think first we should gather a few rate quotes, and then follow up with some research and interviews before choose the lender who is right for us.

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  6. I’m thinking about investing in real estate to make some extra income, and to have a fun place to vacation. I really appreciate this information on financing the purchase, especially the info about loan types. What percentage of the time do you have to live in a home for it to be considered your residence? Thanks for the information!

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  7. Always try to make sure to look out for the non-down payments home loans which will be useful for people with poor credit. So the home-buyers need to decide which home mortgage loan will be right for them.

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  8. The thing to be understood about any lender or bank is that a bank or a lender never takes a loss on its books when dealing with you. So never fall for schemes offered by them in terms of interest rates and easy EMI payments no matter how juicy and in your favor they may appear. A bank offering teaser rates on a loan for the first few years…rest assured will recover more than what it has lost from you over the years. Remember a bank always covers itself. Its always the customer who has to pay one way or the other. So its always wise to choose a lender whose terms are straight forward.

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  9. Owning a home is one’s nightmare and dream, great informative article. thank you for the post.

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  10. I like that the article recommends collecting references for the different mortgage lenders. After all, you will likely want a mortgage lender that you can easily work with to get the money you need. A reference from a friend or family member can really tell you whether a particular lender is worth working with or not.

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  11. Lately, I have been thinking about getting my first home soon. I liked that you pointed out that it smart to visit a mortgage broker. It is good to know that they can help you figure out what type of mortgage you are eligible to for.

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  12. You’ve got some great advice for choosing a mortgage lender. It makes a lot of sense that talking to some of our friends who’ve bought homes recently is a good way to start. We’ll have to start asking for recommendations because we want to buy a home next year at the latest.

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  13. Banks offer numerous schemes in terms of loans and financial assistance, but it is these Government Sponsored Schemes that specifically target the upliftment of the downtrodden people in society. One can avail these schemes from banks like Vijaya Bank at very competitive rates.

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