What to Look for in a Mortgage Lender

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So you and your spouse are ready to take the plunge and purchase your first home together. While this is an exciting process, it can also be incredibly stressful, which is why you need the right mortgage lender by your side to simplify the process. 

However, if you’re new to the home buying experience, you might not be so sure what to look for in a lender. What do they do? And more importantly, how do they differ? We answer these commonly asked questions – and more – below. 

What is a Mortgage Lender? 

Simply put, a mortgage lender is the company that loans you the money to buy a house. There are four main types of lenders: banks, mortgage brokers, credit unions, and private mortgage lenders. Interest rates usually vary among these financial institutions.

In exchange for the money they give you to finance your home, the lender charges interest that is paid over the entire duration of the loan. Here are a few things to look for when selecting a mortgage lender:

1. They Work with the Type of Mortgage Loan You Want

This one may be a little tough to figure out on your own if you’re new to the whole thing. But there are plenty of resources available online to help you understand the differences between all the available mortgage loans. So, getting an idea of what you think may work best for you will help you determine which kind of mortgage lender is most suited to you and your home buying needs. 

For example, if you’re a veteran, you may want to take advantage of a VA loan. In that case, you’ll want to find a lender who works exclusively with these, as they require different documentation that other conventional mortgage loans do not – and you’ll want someone who knows how to advise you on this effectively. 

Or, let’s say your credit score isn’t the best. Then you may have to look for an FHA loan. No mortgage lender expects you to be an expert on mortgage loans (after all, that’s what we’re here for), but getting an idea of what you think you’re qualified for can make it easier for you to find a lender later on. 

2. They Offer Lower Mortgage Rates Than the Competition

Maybe you’ll end up going for the first mortgage lender you look at, but that doesn’t mean you shouldn’t still shop around for the lender with the best rates. 

Different mortgage lenders may be able to offer lower rates, and in turn, save you thousands of dollars in the long run. Once you figure out what kind of mortgage loan you qualify for, get quotes from your top picks and go from there. Keep in mind that the quotes they give you are just that…quotes. The number you end up paying may be different once they run your credit. 

3. They Offer Virtual or Face-to-Face Options to Make You More Comfortable

These days, doing things online is usually simpler. But is that a process you’re okay with? Or are you more comfortable conducting everything in person? Your comfort level is paramount when buying a house, so finding out how your mortgage lender conducts their business can make you feel safer and more in control. 

In most cases, mortgage lenders who offer their services online can offer better rates than those who conduct business in a brick-and-mortar office because they don’t have as many costs. If you really like them but prefer face-to-face interaction, find out if they’re able to meet you via Zoom or another type of virtual meeting. 

4. They Can Pre-Approve You Upfront and Close on the House Quickly

When you’re ready to move forward with a house, waiting for closing can be a nightmare. So, if the mortgage lender can close quickly, this is a great benefit. There are many necessary steps before closing, including signing paperwork and having an appraisal/inspection. These things can take time. However, there are a few things you can do to cut back on this time. For example, can the mortgage lender pre-approve you and complete most of the paperwork upfront? 

5. They Have Excellent Responsiveness

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Though your mortgage lender is conducting a service, they’re conducting that service for YOU. As such, they should be available to answer whatever questions you have promptly. Buying a home for the first time can be incredibly confusing and overwhelming, so you should remember that no question is too silly to ask. In fact, chances are, we’ve already answered it a thousand times. 

Whether you reach out to them over text, email, or phone call, your mortgage lender should get back to you promptly and be able to explain everything to you in great detail if you don’t understand something. The best mortgage lenders are the ones who take the time to work with you from start to finish, rather than treating you like another file. 

6. They Have a Great Reputation

Another thing you should look for in a mortgage lender? An excellent reputation. While you can turn to their website to check out their reviews, the best thing to do is visit Google to find out what people are saying. 

Google tends to share both the highlights and lowlights. And though certain reviews may be taken with a grain of salt, they can help complete the picture for you as to whether or not a mortgage lender is the right pick. Moving forward with a company that has a stellar reputation online or comes highly referred to you by other clients can give you the confidence that your home buying needs will be taken care of. 

Are You Ready to Move Forward and Buy a House? Call the Team at City Creek Mortgage for Help

Buying your first home is a wonderful, albeit stressful situation, but the right lender can help take that stress and uncertainty off your shoulders. When you’re ready to move forward, the trained mortgage professionals at City Creek Mortgage can help. 

We work with all types of loans, including conventional loans, jumbo loans, and more. Call us today at 801-501-7950 to get started. One of our trained mortgage lenders is standing by to help you get started on this next leg of the journey. 

Home buying is made simpler with the unparalleled help of City Creek Mortgage. Don’t delay. Call us today!

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