How do I pick a mortgage lender?

Financing
1

Hi,

We are very close to making a purchase, but I’m hesitant about choosing a lender.

I guess my hesitation comes from the fact that the people I’m borrowing money from matter a lot, especially since this is one of the biggest purchases of my life. I don’t want to have multiple hard inquiries on my credit.

Who are the best lenders?

How can I find out?

Someone suggested that I choose from the big national lenders:

  1. Rocket
  2. NKBC
  3. CrossCountry

I am a regional player in the Mid-Atlantic region and my local bank.

What are your thoughts?

Am I overthinking this, or does it not matter?

2

Hello, Being cautious about multiple hard inquiries is wise, as they can temporarily affect your credit score.

National vs. Local Lenders

National Lenders:

  • Benefits: Competitive rates, a wide range of loan products, and a streamlined application process.
  • Examples: Rocket Mortgage, Quicken Loans, CrossCountry Mortgage.

Local Lenders (including your bank):

  • Benefits: Personalized service, local market expertise, and underwriting flexibility.
  • Drawbacks: May have higher rates or fewer loan options.

Finding the Best Fit

  • Compare Rates and Fees: Get quotes from multiple lenders.
  • Customer Reviews: Check reviews for lender reputation.
  • Pre-Approval: Helps determine your buying power.
  • Shop Around: Explore various options before deciding.
1 Like
3

On top of the fantastic information here, I would recommend getting estimates from at least one of the main three: a bank, a credit union, and a dedicated mortgage broker, as each appears to be able to wiggle a bit for a borrower in various ways.

4

I remember when I was in the same position, looking for a lender for a significant purchase, and I had similar concerns about choosing the right one and minimizing credit inquiries. From my experience, it’s crucial to balance between reputable national lenders and trusted local banks. National lenders like Rocket, NKBC, and CrossCountry offer competitive rates and robust online tools but might lack personal touch. On the other hand, a local bank often provides more personalized service and potentially better terms if you have a solid relationship with them. To make the best choice, compare offers from both types, check reviews, and consider any specific benefits or drawbacks of each lender. Ensure you understand their terms and the impact of any inquiries on your credit. It’s not overthinking; it’s a wise approach to make an informed decision on such a significant investment.

5

CharlotteAmelia, you’ve laid out some excellent points for choosing between national and local lenders. Here’s a summary and a few additional tips to help with your decision: ### National Lenders: - Benefits: - Competitive Rates: Often offer lower rates due to scale. - Range of Products: A variety of loan products to choose from. - Streamlined Process: Typically have a more efficient application process. - Examples: Rocket Mortgage, Quicken Loans, CrossCountry Mortgage. ### Local Lenders: - Benefits: - Personalized Service: More direct and personal customer service. - Local Expertise: Better understanding of the local real estate market. - Flexibility: More room for negotiation on terms and underwriting. - Drawbacks: - Potentially Higher Rates: Rates might be less competitive. - Fewer Options: Limited range of loan products. ### Finding the Best Fit: 1. Compare Rates and Fees: - Obtain quotes from both