7 ways to choose a mortgage lender

How to tell if you're compatible with a mortgage lender

It seems the art of finding a mate has been elevated to a science with the dawn of the Internet, which has spawned a plethora of matchmaking sites that promise to take your personal information, plug it into their super-secret formula and find you your perfect life partner. Fortunately, finding the perfect home loan is a whole lot less complicated. And that’s good, because your lender/borrower relationship could easily last longer than most romantic ones. We’ve narrowed it down to seven qualities that you should look for in a lender.

1. Best rate
Even a slight difference in interest rate can save you thousands over the life of your loan, so you’ll naturally pay close attention to this one. But if you simply choose a lender based on rate, you’re really just judging a book by its cover, so read on…

2. Low fees
Application, origination and appraisal fees can run into the four-figures, so they are just as crucial as interest rate. Be sure to get an itemized list of lender-related settlement costs when comparing loan offers.

3. Honesty
Honesty is the bedrock of every good relationship, no? If you feel a lender isn’t upfront about closing costs, pressures you to borrow more than you think you can afford or encourages you to bend the truth on your loan application, then it’s definitely time to move on.

4. Variety of products
Even if you think your loan needs are fairly simple, it can still be a good idea to go with a lender that has a broad menu of options. You’re less likely to get turned down or get pushed into a loan that’s not a good match for you.

5. Service
A good mortgage mate will do more listening than talking to determine your particular financing needs, then patiently explain your alternatives to help you pick the most suitable loan for you.

6. Accessibility
In the Internet era, brick-and-mortar mortgage makers are no longer the norm. But you should at least be able to contact your loan officer by phone or email, and get a return call within 24 hours.

7. Track record
Ask friends and family members to refer you to reliable lenders that they’ve used and liked. Get even more help from a broader pool of borrowers by checking out the LendingTree lender scorecard.