How To Find the Best Mortgage Lender in Your Area

  • March 23, 2021
  •   •  
  • 3 min. read time
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Shopping for the best mortgage lender will save you money and a lot of stress. It seems like every big bank and mortgage lender promises the lowest rate and fastest close. So how can you really tell who to trust when it comes to finding the best mortgage lender? Mortgages aren’t one-size-fits-all anymore. Taking time to learn and find the best mortgage lender can save you money and ultimately secure a better mortgage. The good news is it doesn’t need to be overwhelming.

This quick article can help.

When It’s Time to Find a New Mortgage Lender

Here are some common situations when it might be time to reconsider your options and shop for a new mortgage lender:

  • Getting ready to buy your next home
  • Considering a second home or rental property
  • Shopping for a vacation home
  • Refinancing your mortgage
  • Relocating to a new area

If you’re a homeowner in any of these situations, it’s worth it to do some comparison shopping this time around.

3 Smart Tips to Finding the Best Mortgage Lender

1. Loyalty is Overrated in the Mortgage Business

If you have a mortgage lender you really trust and who has helped you through a few mortgages or a refinance, keep it up!

But a lot of homeowners make a few common mistakes when they buy a house for the first time:

  • Using a big bank just because they have other accounts there
  • Following a friend’s referral without doing any research
  • Using a lender the realtor suggests (to keep things moving fast)
  • Choosing an online lender to take advantage of super-low advertised rates

Sometimes it’s a good fit. But more than 45% of homeowners usually end up using a different lender at some point. Why? A home mortgage is still one of the biggest financial commitments most people make in their lifetime. Doing a little homework to choose the right lender can save you a lot of money.

2. Find a Mortgage Lender Who Does Custom Home Loans

This might seem obvious. But mortgages are not one-size-fits-all and finding the lowest rate online won’t always get you the best mortgage.

Loan programs are becoming more and more specialized to meet the growing needs of homeowners and a housing market that changes quickly.

Consider just a few costly variables that go beyond the advertised “low mortgage rate” you might see from lenders:

  • Fees
  • Points
  • Closing costs
  • Adjustable terms
  • Variable terms
  • APR vs. Interest rates
  • Balloon payments
  • Private mortgage insurance
  • Prepayment penalties

These are just a few of the variables that could end up costing you a lot of money in the long-term. Every mortgage has fine print and there are a lot of hidden costs to consider.

The bottom line: Work with someone who listens to your situation. A qualified mortgage lender will show you custom home loan options to meet your financial goals.

3. Find the Best Mortgage Lender By Doing a Test Drive

Take advantage of your network and start with referrals. Check-in with a trusted realtor, a few business colleagues, or friends you might have in the industry.

Once you have a few referrals, do a little research by taking a test drive.

Read customer reviews, get in touch and ask a few questions.

Do the potential lenders:

  • Respond quickly?
  • Answer your questions with relevant info?
  • Work quickly without making you feel pressured?
  • Explain the process so you know what to expect?
  • Have a LOT of happy customers?

Loan programs are becoming more and more specialized.

There are so many options that it’s easy to feel overwhelmed. Find a mortgage lender who communicates clearly and makes things easier for you.

Final Takeaway

You want to work with an experienced mortgage lender who can narrow down the options and offer you custom mortgage solutions. A lender who can help you reach your own financial goals.

The first time you bought a home, you may have spent most of your time going to open houses and comparing properties. Maybe you picked a lender too fast.

This time around, you’ve got some extra time and a lot more knowledge.

Taking Action

Shop around, read customer reviews, connect with a few lenders and find one who listens well and is committed to helping you with your financial goals. Take a test drive and learn about smart next steps. Take time to find the best mortgage lender and you’ll save money on your mortgage. We can help.

equal housing opportunityNMLS CONSUMER ACCESS LINK: NMLS #1850

© 2021 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.

Licensed by the Dept. of Business Oversight under the CRMLA.

Licensed as Preferred Rate in AL, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OR, TN, TX, VA, WA, and WI. Preferred Rate operates under American Pacific Mortgage in AZ and NV. AZ Corp BK 0906702. CA DRE #01215943. Regulated by the Colorado Division of Real Estate. Georgia Residential Mortgage Licensee. NV MB 2941/164. Licensed under the Oregon Consumer Finance Act.

Licensed by the Illinois Department of Financial & Professional Regulation, Residential Mortgage License # MB.6761304 | James R. Thompson Center | IDPR – Residential Mortgage Banking | 100 West Randolph St, 9th Floor | Chicago, Illinois 60601 | (844-)768-1713

Licensed by the Department of Financial & Professional Regulation, Residential Mortgage License # MB.6761304

The Department of Financial and Professional Regulation (Department) evaluates our performance in meeting the financial services needs of this community, including the needs of low-income to moderate-income households. The Department takes this evaluation into account when deciding on certain applications submitted by us for approval by the Department. Your involvement is encouraged. You may obtain a copy of our evaluation. You may also submit signed, written comments about our performance in meeting community financial services needs to the Department." (Source: P.A. 101-657, eff. 3-23-21.)

CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”