Qualify for a Mortgage
How to Choose the Right Mortgage Lender
Choosing a mortgage lender is an important step in buying a home. You’ll want to understand your loan options, compare the costs and terms available to you, and work with a lender who communicates clearly throughout the process.
We believe choosing a lender should be about more than finding an interest rate. The loan program, fees, service, and support you receive can all affect your mortgage experience. We’re here to help you understand your options and know what questions to ask as you compare lenders.
Compare Loan Options, Rates, and Costs
Mortgage rates and fees can vary based on the lender, loan program, and your financial circumstances. When comparing offers, look beyond the advertised interest rate. Consider the annual percentage rate (APR), lender fees, discount points, estimated closing costs, and the terms of each loan.
Comparing Loan Estimates for the same type of loan can help you evaluate your options more consistently. Ask whether a quoted rate is locked, how long it is available, and whether any fees apply.
Explore our Loan Programs to learn about available financing options, and visit our Home Loan Basics page to understand monthly payments, closing costs, and interest rates.
Understand Your Lender Options
Mortgage bankers, direct lenders, and mortgage brokers can help borrowers obtain financing, but their business models may differ.
- Mortgage bankers and direct lenders originate mortgage loans through their lending operations and may fund loans directly or through funding arrangements.
- Mortgage brokers work with borrowers to identify loan options from lenders in their networks.
The products available, responsibilities, and loan process vary by company. Ask who will originate your loan, who will handle underwriting, and who you’ll work with throughout the process.
Ask About Communication and Service
A mortgage involves documentation, important deadlines, and several stages of review. Before choosing a lender, ask who your primary contact will be, how you’ll receive updates, and how questions or unexpected changes will be handled.
We work with borrowers to explain their mortgage options, outline the steps involved, and help them understand what’s needed as their loan progresses.
Learn more about how to qualify for a mortgage to understand what to expect before applying.
Know What Questions to Ask
Before selecting a lender, consider asking:
- Which loan programs may fit my financial situation?
- What interest rate, APR, fees, and estimated closing costs apply?
- Can I lock my interest rate, and what terms and fees apply?
- What documents will you need from me?
- Who will be my main point of contact?
- How will I receive updates about my application?
- Will you service my mortgage after closing, or could another company handle my payments?
These questions can help you compare both the financial terms and the service you can expect. Our Do’s and Don’ts of Mortgage Financing guide can also help you prepare for the application process.