In the next section, we will examine how to select the best mortgage lenders for your dream home. Start by compiling a list of your top choices for the best mortgage lender based on your financial needs and preferences. In this example, we start by considering the top 25 home buyers by wholesale mortgage volume in late spring or early summer. Then narrowed the list based on: Customer service, interest rate, loan terms and options, and a range of loan products.

best mortgage lenders

Special incentives for borrowers. One important incentive that might appeal to many buyers is a guaranteed rate from a mortgage lender or broker. The guaranteed rate could be a low fixed rate offered to long-term customers. Most mortgage lenders will look favorably upon customers who have been in their lending program for five years or more. To some buyers, a low rate may mean the difference between affordable affordability and financial disaster.

Low closing costs. For buyers who are looking for the best mortgage lenders, they will appreciate a mortgage lender who charges low closing costs or does not charge a fee for an appraisal after they close on their home loan. A few lenders who advertise free appraisals include: National Association of Realtors, Scottrade and Trustees of American States, and Equitable PCI. There are other sites that offer quicken loans.

Low loan costs. A few lenders who advertise significantly lower loan costs might be a good choice, if you plan to finance a home through refinancing. To be eligible for a mortgage refinance, borrowers need to own a home that is worth at least twice the value of the loan. To qualify for the best mortgage lenders, look for one that offers no prepayment penalties. Look also for one with a fixed rate, even if it’s a tad higher than the national average mortgage rates.

Competitive fees. For buyers who want the best mortgage lenders, they should make sure that they’re working with the best mortgage lenders available. Comparing not only the interest rates but also the fees for any financing option. For example, some lenders may require borrowers to pay an extra fee if they use an adjustable-rate mortgage to finance the purchase of a home. Other fees may apply to certain types of loans, such as interest-only loans and other specialty loans.

One-stop-shop. To get the best mortgage lenders, it’s important to work with one that caters to all your needs. The best mortgage lenders will work with buyers from all income levels and credit scores. To determine the best mortgage lenders, investigate the company’s website and look for customer service reviews and online comments. If there are plenty of negative comments posted, move on to the next one. However, if you see plenty of positive comments, it’s probably a good lender to work with.

Value. After narrowing down your list to the best mortgage lenders, go with the one with the highest annual percentage rates, the lowest service fees and the lowest closing costs. These are the lenders you should work with because they will give you the most affordable monthly payments and the best mortgage loan term. In order to qualify for the best mortgage loan rates, borrowers need to have excellent credit and are making a sizable down payment. They also need to have enough money in the bank to make the monthly payments.

Talk to friends, family and co-workers for ideas about which mortgage lender they use. The internet is a great resource for finding mortgage loans, whether you are shopping for a house or refinancing your existing mortgage. If you don’t know anyone who has used a particular lender, start by using a search engine to find mortgage brokers in your area. Then compare loan estimates and interest rates between various mortgage lenders. Remember to consider the reputation of each lender when making a decision. A reputable lender should have no problem providing you with quality mortgage loans and excellent customer service.