What to Look For When Comparing Mortgage Lenders?

Buying a house can be a stressful, intimidating process. You might spend weeks or months searching for the perfect home, only to be outbid by another buyer. This is an unfortunate reality of the buying process. The good news is that getting a mortgage doesn’t have to test your patience.

When some people apply for a home loan, they make the mistake of picking the first lender that pops into their mind. But all lenders are not the same, hence the importance of comparison shopping.

Here’s what you need to consider when shopping and comparing mortgage lenders.

1. Does the company offer competitive rates?

Shopping around and comparing lenders ensures that you don’t overpay for a loan.

Mortgage rates vary by mortgage company or bank. The higher your mortgage rate, the more you’ll pay monthly and over the life of your home loan. Since the goal is to keep your mortgage as affordable as possible, you need to work with a lender that offers highly competitive rates.

This is what you’ll get with a mortgage through Blue Spot Home Loans. In fact, we welcome the opportunity to beat any competitor’s rate. So, bring us their offer and we’ll see what we can do. Unlike some companies, we keep our overhead costs low and pass the savings to our customers.

2. Are the loan officers salaried or commission-based?

When shopping for a home loan, it’s okay to ask whether loan officers earn a salary or a commission.

This is need-to-know information because commission-based loan officers earn a percentage of the total loan amount, which means that part of this cost may be passed to customers. On the other hand, salaried loan officers are not paid a commission that is connected to the loan amount, and this can result in greater savings for you.

3. What type of mortgage products do they offer?

Every borrower is different. Therefore, you also need a mortgage company that offers a variety of mortgage solutions. Plus, the company should be willing to go the extra mile to understand your needs, and then recommend products based on your situation.

Many mortgage lenders offer basic home loan products such as FHA home loans, conventional loans, jumbo loans, VA loans, and USDA loans*. But these aren’t the only solutions.

Here at Blue Spot Home Loans, you’ll also find new construction loans, reverse mortgages, renovation loans, family opportunity home loans, as well as payment options to accommodate borrowers who endure financial hardships.

4. How long is the process from application to closing?

Closing times vary by mortgage lender and circumstances. When you shop around and compare lenders, you’ll find that some banks and mortgage companies offer closing times of no less than 30 days. Sometimes, though, it can take up to 45 days to close on a mortgage loan.

If you’re looking to get a mortgage and close faster, work with a mortgage company that gives its customers the option to close in as little as 14 days. The sooner you finish the process, the sooner you can get the keys to your new home.

Bottom Line

Blue Spot Home Loans is proud to offer highly competitive rates, fast closings, and customizable loans. Our salary-based loan officers always put the customer first, and we’re committed to helping you find the right loan for your unique situation. To learn more, give us a call or fill out the contact form.

Cherry Creek Mortgage Co., Inc. NMLS #3001, dba Blue Spot Home Loans. *Cherry Creek Mortgage Company is not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development, Federal Housing Administration, U.S. Department of Agriculture, Veterans Administration or the Federal Government.