Interviewing Mortgage Lenders

Mortgage lenders are financial companies that lend money to borrowers. It is important for borrowers to find a dependable mortgage lender so the loan approval process is quick and easy and so that their needs and goals are met. When interviewing mortgage lenders, weeding out the good from the bad is a necessary step one must take.

Step 1 – Research and Prepare

When researching and interviewing possible mortgage lenders ask each lender if they understand different types of loans.  Compare loan types with closing costs, down payments, and interest rates. The more knowledgeable you are going into the interview, the easier and smoother the entire process will be. You will also want to generate a detailed monthly expense report so that you know the ballpark figure of how much you can afford to pay for a monthly mortgage.

Step 2 – Ask For Referrals

Before you begin interviewing mortgage lenders, you’ll need to narrow down your choices. The easiest way to find a reputable mortgage company is to ask your friends, family, and neighbors which lender they’ve had a positive experience with. The most valuable information will be gathered from your friends and family. You can also ask a local real estate agent.

 Step 3 – Don’t Just Look at Interest Rates

Don't simply choose the mortgage lender offering the lowest interest rate. While interest rates are important, you also need to find a mortgage lender with excellent customer service. You can check customer service ratings and reviews on the Better Business Bureau's website.

Failing to select a mortgage lender with top-quality customer service could unnecessarily lengthen the loan approval process and result in unnecessary fees. To make the home buying experience as stress-free as possible, select a mortgage lender offering both low interest rates and superior customer service.

Step 4 – Ask for an Experienced Loan Originator

Next, you’ll need to find a trustworthy loan originator. The loan originator is the person within the mortgage company who generates your mortgage. The best loan originators work towards your goals and provide their professional opinion when it’s needed.

Only work with a loan originator who:

  • has at least five years of experience in the mortgage industry;
  • understands the market;
  • listens to your needs and concerns;
  • has your best interest in mind;
  • fully explains your options and the various loan types available to you;
  • answers your questions in a straight-forward way;
  • is readily available to speak with or meet with you.

Step 5 – Get Competitive Loan Rates

Your loan originator should help you select the type of loan that best fits your needs and budget. Once you've chosen the right mortgage for your situation, your loan originator should eliminate any fees that they can in order to lower your bottom line. They should also offer low estimates on closing costs and interest rates, and then be able to lock them in.