Finding a good mortgage lender is am important first step in finding your home. Not all lenders are created equal. You might be thinking that going straight to your personal bank to get a home loan is your best bet, but that is not always the case. When we purchased our house it was a nightmare dealing with the out of state loan department to get all our documentation in order. We constantly had to scan and email more and more documents that they kept asking for.
When starting your lender search, ask your real estate agent for a few good local lenders names, ask your friends who they used, and also speak with your bank where you primarily bank. Once you have a list of names, narrow it down to 2-3 lenders you want to speak in more detail with. Generally, banks have fewer loan options, where as general mortgage brokers have the ability do financing with a bunch of different companies. This can give you more flexibility depending on your financial situation. For example, if your income is primarily self employment a mortgage broker might be your best bet because they work with lenders who deal more with that type of income.
Your lender choice matters because local ones are generally easier to work with, where you can meet them in person and drop off paperwork. Also, when making offers on homes with multiple offers your lender choice can be good or bad for getting the seller to accept your offer. In situations where several offers are very close in price, the sellers agent will typically give their thoughts on lender quality. Out of state mega lenders can be harder to work with, versus a good local lender who many agents have dealt with before.
Additional Reading: Getting Pre-Approved
Do you need some lender recommendations? Reach out to me and we can discuss some good ones, and a few to avoid.