Finding a Mortgage for a Home 101: How to Find the Ideal Lender


Buying a home involves keeping several balls up in the air all at once. In addition to locating the ideal new home, moving, and selling your old home, you also need to get your finances in order.

Finding the perfect mortgage lender is an important part of this process. When obtaining a mortgage for a home, many people just race from beginning to end, hoping to get it finished as quickly as possible. Unfortunately, this can have some unintended consequences. When you put in the time required to find a great mortgage lender, the entire purchasing process goes more smoothly. Here’s what you need to know:

Finding a Mortgage Lender You’ll Love: 5 Tips

Whether this is your first home purchase or you’re an experienced buyer, these tips never go out of style:

1. Improve your credit score before you start looking

Lenders across the board will be able to do more for you if your credit score is in great shape. Resolve outstanding debts, lower your credit card balances, and take proactive steps to improve your score overall before you venture into a broker’s office. In addition to helping you get a better rate, improving your credit score will also make you a more attractive borrower to lenders.

2. Understand what to expect

When you know what to expect from a mortgage broker and the lending process, you’ll be more agile and able to pivot throughout the ordeal. Additionally, knowing what to expect makes it easy to prepare in advance. This removes many of the obstacles (forgotten paperwork, etc.) you might otherwise face. By understanding what documentation you’ll be required to provide, how long the process is likely to take, and how much money you’ll likely qualify for, it’s easier to move smoothly through the mortgage lending process and enjoy a more streamlined experience from start to finish.

3. Start comparing rates from different sources

Different mortgage lenders will offer different rates. It’s up to you to do your homework, so you know the range of mortgage rates and type that are available. Use an online mortgage calculator to compare rates from popular mortgage lenders, or shop around in your local community. No matter how you conduct your research, it’s critical to know what’s out there so you can recognize fair and unfair rates when you see them.

4. Ask your lender about requirements

Open communication is critical when you’re working on finding a mortgage lender. Asking about things like requirements, fees, and even communication preferences can go a long way toward making the experience more positive for both you and your lender.

5. Read the details of any contract you receive

Remember: once you’ve found a mortgage, you’ll need to add up the other expenses, as well. For example, you may be required to pay closing costs, and you’ll have to think about monthly taxes, home insurance, utilities, and maintenance on top of your existing mortgage payment.

Smart Shopping Starts Here

Finding a mortgage for a home can be difficult. Following these five simple tips will make it easier to find a lender you’ll love, which is half the battle.