Choosing the Right Mortgage Lender

Women on Phone Talking About Title Transfer in PA

As a Pennsylvania Title Company, we work with over 100 mortgage lenders every month. We interact with their mortgage originators, processors, and back office teams.  There is a very real difference between lenders and the customer experience they deliver. Here are a few insights and advice from the team at Capstone Land Transfer.

Common frustrations with mortgages:

  • I was Pre-Approved, but later turned down
  • I thought I qualified for a certain program, but found out later I didn’t.
  • The Lender backed up closing because of information needed at the last minute
  • Poor response time and communication

PRO TIP:  The easiest way to choose a great lender is to contact 2 or 3 top agents and ask who they recommend.  Agents are very picky about lenders because the agents only get paid if a transaction closes and they only get referrals if their clients are happy with the process. If a top agent sends all their business through one or two lenders, you can be certain that there is a very, very high probability that you’ll receive great service.  National lenders with call centers can do a great job, but you are totally relying on luck.

The Originator:  This is the professional that you meet and work with directly to apply, select a type of mortgage, and guide you through the process.  They may work for a local bank or a national mortgage lender…it doesn’t matter at this point. You need someone that understands the local market, knows the agents, taxes, and closing costs. A local originator has tremendous pressure to do a great job on your mortgage because their reputation is on the line.  

Reputation and Credibility:

Researching the credibility of a lender is an essential first step. A reputable lender is more likely to provide transparent terms, excellent customer service, and fair lending practices. Choosing a lender with a positive track record can save you from potential headaches and financial trouble down the road.

Customer Service:

The quality of customer service offered by a lender should not be underestimated. A responsive and supportive customer service team can be a valuable resource, especially if you encounter financial difficulties or have questions about your loan. In a fast-paced market like we have been seeing, a responsive lender will be a key asset when making offers on your new home! 

Loan Options:

Different financial situations require different loan options. A good lender offers a variety of loan products to cater to the diverse needs of borrowers. Consider lenders that provide flexibility in terms of loan amounts, repayment options, and eligibility criteria. This flexibility ensures that you can find a loan that aligns with your unique financial circumstances.

Transparency in Fees and Charges:

Hidden fees and charges can turn a seemingly affordable loan into a financial burden. Choose a lender that is transparent about all associated costs, including origination fees, closing costs, and any other charges. Understanding the full cost of the loan allows you to make informed decisions and avoid unexpected financial surprises.

 Interest Rates and Terms:

One of the primary considerations when choosing a lender is the interest rates and loan terms they offer. A seemingly small difference in interest rates can translate into substantial savings over the life of a loan. 

Financial Stability of the Lender:

A financially stable lender is more likely to weather economic downturns and continue to provide the support and services you need. Research the financial health of the lender before committing to a loan agreement to ensure they can fulfill their obligations over the life of your loan.

Choosing the right lender is a decision that should not be taken lightly. The impact of this decision extends beyond the immediate transaction, influencing your financial well-being for years to come. By carefully considering these factors you can make an informed choice that aligns with your financial goals and sets you on a path to success.

Ryan Hess

Ryan Hess

Ryan Hess is a highly recognized real estate industry-expert in Pennsylvania. Since his initial licensure and start as an agent in 1995, he excelled as an agent, team leader, and award winning broker/owner for Coldwell Banker with over 300 agents and offices throughout central PA. When he isn’t immersed in his ever-expanding career, Ryan enjoys golf, pickleball, skiing, and sailing. Ryan has four adult children, two grandchildren, and two needy dogs.

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