How to Find a Good Mortgage Lender

Finding a good mortgage lender can make the home buying process much easier. The Internet provides an infinite number of sources to select a mortgage lender. The home buyer must do research prior to making the decision on where to borrow money for a home purchase.

Difficulty: Moderately Challenging

Instructions

1. Family and friends who have purchased a home provide a good resource. Ask about individual experiences, both positive and negative. Find out how the mortgage lender was selected. Assemble a list of what to do and what not to do from information gained through others' personal experiences.

2. Speak with a real estate professional. Chances are a Realtor has pretty thorough knowledge of the mortgage lenders working in the area. They will have heard the good and bad stories of clients. Often they can refer home buyers to a good lender.

3. Make a list of terms and personal requirements. Examples of information you may want to include: mortgage amount needed, interest rates, application fees, fixed or variable rates and closing costs.

4. Develop a spreadsheet with a list of each potential lender and all the information desired from each lender. After interviewing each lender, note the answers on the spreadsheet to make comparisons between lenders easier.

5. Eliminate any lenders who do not meet personal requirements. Speak with lenders more than once if necessary to learn information or business practices. Develop a short list.

6. Consider the knowledge gained from discussion with friends and from contacts with mortgage lenders. In the end, it is a personal decision only the home buyer can make.

Tips & Warnings

• Work with a mortgage lender that has a local representative who can answer questions and address concerns.