How to Choose a Mortgage Lender
A significant question people face during the mortgage process is determining which mortgage lender to choose. First, you must answer the question, “What qualities am I looking for in a mortgage lender?” Choosing the right mortgage lender isn’t always about getting the lowest rate. Many prospective borrowers spend countless hours comparing rate quotes from different mortgage lenders, but often overlook other critical factors that will help determine whether their entire mortgage experience is positive.
Questions to Ask When Choosing a Mortgage Lender
Follow our guide on questions to ask when choosing a mortgage lender to help ensure a smooth, efficient, and positive home buying process.
Is the quoted rate final? Remember, a rate quote is simply a quote
The rate a mortgage lender quotes you may be subject to change upon a full review of your income, assets, and debt, along with the mortgage program you select. Thus, it’s not always the best option to work with a mortgage lender based solely on the lowest quoted rate, as the quoted rate may change.
Does the mortgage lender offer the best combination of interest rates, customer service, and industry experience?
It can’t be emphasized enough that a mortgage is more than just an interest rate. Buying a home is often one’s most significant lifetime investment, so you want to work with a mortgage lender that will make you their number one priority. Since the mortgage process may range from 3 weeks to 6 months, make sure you choose a mortgage lender that you can rely on and trust.
Does the mortgage professional work closely with the company’s key decision-makers?
Your mortgage advisor should have the authority to make swift and timely decisions. As rates and market conditions change every day, your mortgage advisor must always be ready to act.
GuardHill’s sales force works alongside the in-house operational teams and key decision-makers. Working together as a cohesive team allows our loan originators to offer clients the highest level of customer service.
Does the mortgage lender have a variety of loan programs and guidelines?
Many people who are shopping for a mortgage don’t understand the difference between a mortgage banker, a mortgage broker, and a retail bank. Mortgage bankers, brokers, and retail banks follow different guidelines, which may put restrictions on one’s lending capabilities. A mortgage banker and broker, like GuardHill, works with many different investors and lenders, giving clients access to various loan programs with varying guidelines and rates.
Will the mortgage lender lower your rate if rates drop?
Some mortgage lenders will not lower the clients’ rate if rates have gone down. GuardHill’s goal as a mortgage advisor is to do what’s best for our clients’ financial needs. If rates drop, and your credit profile and market conditions permit, we will lower your rate throughout the mortgage process.
Along with following these questions to ask when choosing a mortgage lender, remember to also consult your trusted friends, family members, and referral professionals. Speaking with someone who has recently obtained mortgage financing may be able to provide information on factors such as the quality of the service supplied, available loan programs, associated fees, and much more. Recommendations may help provide guidance when deciding how to choose a mortgage lender.