9 Things to Look for When Shopping Mortgage Lenders Online

#1 Do You Need a Mortgage Broker?

Mortgage brokers have benefits. A broker can save you a lot of time by doing much of the work when it comes to finding several possible lenders to work with. The broker will have relationships with many lenders and can help you to choose the right one.

But there are some downsides of brokers you should consider. Brokers make their money by arranging the deal between the lender and buyer. The wrong broker may set you up with the lender that makes them the most money, but it may not be the best fit for you. If you do decide to use a broker, be sure to do research. Ask for testimonials and references and learn from other current homeowners what their experience was working with that broker.

#2 Deciding the Type of Lender You Want

Do you want to work with a big or small lender? If you like more customer service and a lender who knows your first name, consider a small lender. If you want to get the best interest rate, the big institution could be your best bet. Researching big and small lenders will help you to figure out which is best for you.

#3 Ask Various Mortgage Companies

A mortgage broker is not the only option to find lenders. Ask friends, co-workers, family and others who have bought a home in the last five years about who they used to get a home loan. Getting referrals from your personal network can help you to eliminate time wasting as you go through the hordes of mortgage brokers and companies you see online.

#4 Ask Your Real Estate Agent

A good real estate agent does not simply recommend his or her favorite, in house lenders. Smart loan officers take very good care of customers that real estate agents recommend. Use this as leverage. Make sure the lender you talk to knows that you came to them via a referral from your agent. This connection is a good way to break the ice. And it also can help to cut your closing costs!

#5 Research Mortgage Lender's Reputation

No matter what you are told about a lender � whether it is from your parents or a website � it is key to do a thorough background check. If you can obtain names from earlier clients, be sure that you talk to them. Check various online review sources and do not hesitate to ask questions that you have with a lender. Learning as much as you can about the reputation of the lender can save you a lot of headaches down the road.

#6 Ask About Their Experience

Every home buyer is different. Some have high income or low income, and others have good credit and bad credit. Some are first time buyers with no equity, and others have substantial equity in a current home. Your lender should be experienced in the type of mortgage and home situation you are in.

#7 First Impressions Matter

You need to work closely with the lender, so the first impression is key. Note first impressions. Do they answer your first contact quickly? Are they courteous? Do they honor the quote that you saw in an ad? Can they explain the different mortgage options based upon your current financial and credit situation? Do they talk about the timeline of the loan, such as a possible closing date and when the rate should be locked?

#8 Comparing Loan Estimates

Ask each potential lender for their loan estimate. This is a form mandated by law that can help you to compare different loan types. You will see all loan details, such as interest rate, monthly payment, fees and more.

#9 Talk to Several Types of Lenders

Talk to a broker, bank, and credit union to start. You should have at least three different loan recommendations to compare so you make the best decision.

If you follow these essential tips when you are shopping mortgage lenders, we are confident you will get the best deal for your new home.

References - https://smartasset.com/mortgage/5-tips-for-picking-the-right-mortgage-lender