Over the last 4 years, the real estate market has been growing. To that end, over 5.5 million United States homes are projected to sell in 2018 alone, over 500,000 more than in 2014.

This trend of growth is indicative of the fact that owning a home is still a big component of a traditional family’s aspirations.

If you’re one of the many looking to purchase a home in the coming weeks or months, you’ll find that an important part of the home buying process will be to pick the right mortgage lender. Your mortgage lender will be the one who will put forward the money for your house. You will then make payments to them over the life of your mortgage.

To make sure that your choosing a mortgage lender experience is as positive as possible, our team has written this article.

Below, we outline 6 of our top tips for finding a mortgage lender that suits your unique needs.

1. Know the Best Sources

There are a lot of different sources from which you can start searching for a mortgage lender. The more of these sources you’re aware of, the more options you’ll give yourself which will translate into getting better mortgage products.

Typically, people can find qualified mortgage lenders from 5 sources. These sources include mortgage bankers, credit unions, correspondent lenders, savings and loans, and mutual savings banks.

Dig deeper into each of those lending sources to deduce which one best suits your unique financial situation.

2. Work on Your Credit

Credit plays an integral role in the type of mortgage product you can get and the number of mortgage lenders who are willing to work with you. Given the massive upfront costs most homes will carry, you can be sure that your mortgage lender will scrutinize your credit to determine the level of risk you represent to them.

If your credit score is sitting in the 580 range or below, your options are going to be limited. That’s not to say that you won’t have lending options. It just means that the options you do have will come at a high cost to you in the way of interest rates and fees.

To get the best deal and have the most opportunities when choosing a mortgage lender, work on your credit. Utilize your credit cards responsibly and make payments on time. Pay down your existing loans.

Little steps like those to brush up your credit today can mean thousands of dollars saved when you go to buy a home.

3. See Who Is Willing to Give You a Timely Pre-Approval

Pre-approvals are almost necessary for today’s seller’s market. A pre-approval is a letter your lender will give you that tells sellers that if they sell their house to you, you have funding readily available to complete the purchase.

If you walk into an open house without a pre-approval, you will likely be one of the few buyers who doesn’t have one and consequently, will find yourself at a major disadvantage.

Because of that, when talking to mortgage lenders, make sure the one you settle on will be willing to pre-approve you for a home purchase prior to your shopping around.

4. Look for the Best Deal

One of the most important things to keep in mind when choosing a mortgage lender is the packages they’re willing to offer you. Different mortgage lenders can offer vastly different rates on your home loan. A difference as small as .1% in interest can have big implications on how much you end up paying over the life of your loan.

For that reason, be sure to line up at least 3 lenders you’re interested in working with and be prepared to compare and contrast the terms of their products.

5. Ask Questions

The interest rate a mortgage lender offers isn’t the only thing you’ll want to pay attention to before choosing one. Other things such as closing costs, a lender’s willingness to answer your questions, the quickness in which they can do appraisals or offer you pre-approvals all matter as well.

Consequently, you’re going to want to do your homework and compile a list of questions to ask your lender before doing a deal with them. The more thorough you can be when interviewing them about what they have to offer means fewer surprises and headaches later.

6. Seek Referrals

There’s nothing more powerful than word of mouth when you’re going to award your business to someone. So, if you have a friend or family member who has worked with a mortgage lender they liked in the past, ask them for their lender’s information.

If you don’t know anybody who has worked with a mortgage lender, start looking online. Websites like Yelp should be able to connect you with the best mortgage lenders that have glowing online reviews.

You will typically want to keep your search to lending institutions that at least have 10 reviews and an average score of 3.5 or above.

Wrapping Up on Choosing a Mortgage Lender

If you’re going through the process of choosing a mortgage lender, it’s important that you get organized and really work hard to filter your options down to the absolute best lender and loan product.

To get started, it’s recommended to use these tips above.

Doing things as simple as seeking referrals, working on your credit and asking the right questions can have a profound impact on the amount of money you pay over the life of your mortgage.

If you’re looking for more expertly crafted information on all things real estate, check out more content on Bonnie Roberts Realty. For advice for home buyers, sellers, real estate investors and beyond, there is no better place to spend your time!