Choosing the right home loan mortgage lender is a high-stakes decision that can mean the difference between smooth sailing or taking a ride on a real estate rollercoaster. Unfortunately, many homebuyers rush this critical decision without doing their homework.

We want to ensure you secure the best rates and enjoy a seamless homebuying experience. To help you make an informed decision, here are a few essential tips for picking the right mortgage lender.

Decide on Loan Type

Different lenders specialize in other loans. When choosing a lender, consider their experience with the type of loan that fits your unique situation. For example:

• VA loans offer veterans lower interest rates and zero down payment options. Look for VA-approved lenders with experience in these government-sponsored mortgages. 
• USDA loans are ideal for rural home buyers that want low interest rates and zero down payment options. Unfortunately, not all lenders are well-versed in these government-sponsored loans like we are.
• FHA loans are ideal for first-time homebuyers who require low down payment options, more lenient credit requirements, and competitive interest rates. Not all lenders have experience with these loans like we do!

In addition to loan type, consider whether your prospective lender offers specialty loan programs that make homeownership more accessible to those with limited resources.

Compare Mortgage Rates

When considering mortgage rates, it’s important to remember two things:

• Mortgage rates can vary significantly between lenders
• Even a fraction of a percentage point difference in your rate can translate to thousands of dollars lost or saved over the lifespan of a loan

Do not underestimate the importance of shopping around for a lender with competitive rates! It is one of the most effective ways to reduce the cost of homeownership.

Compare Mortgage Fees

Mortgage fees can also increase the overall cost of your loan. These may include origination and application fees as well as closing costs, which can range from hundreds to thousands of dollars.

As with interest rates, these fees can vary significantly from one home loan mortgage lender to the next. To get a comprehensive view of the total cost of your loan, carefully review the fees each lender charges. And be sure to ask about local and federal program offerings that could offset some of these costs.

Ask For Referrals

Online reviews provide a helpful overview of a lender’s general reputation, but nothing beats a referral from a trusted source. Ask friends, family, or work buddies about the experience they had with their lender. This will give you insight into the home loan mortgage lender’s:

• Communication style
• Ability to simplify complex mortgage jargon
• Efficiency—how long it took to process the loan
• Flexibility in finding solutions for unique financial circumstances

We Transform Your Mortgage Journey Into a Walk in the Park

Ready to buy a home but haven't found the right mortgage lender yet? You're in the right place. As a local-first, non-commission-based lender, the JustChoice Lending team is here to help you every step of the way. Our commitment is to provide you and your family with a simple, safe, and straightforward lending experience that puts you on the doorstep of your dream home in no time. Contact us today!