How to Find the Right Lender

You found the perfect house, made a strong offer, and then lost out to another buyer. What went wrong? Sometimes the difference isn't your offer price or earnest money, it's your lender.

In competitive markets, sellers don't just evaluate your financial qualifications. They also consider whether your lender has the experience, responsiveness, and local market knowledge to close the deal smoothly. Choosing the right mortgage lender can be the deciding factor between getting your dream home or watching it go to someone else.

Continue reading to learn how to find the right lender and turn your financing into a competitive advantage.

What This Article Includes:

1. It's More than Just and Interest Rate

2. Communication is Key

3. Where to Find the Right Mortgage Lender

4. The Takeaway

It's More than Just an Interest Rate

Choosing the Right Lender Matters

Knowing how to find the right lender is more than just a low interest rate. Of course, that is the most important thing for you, but there is more to consider in a competitive market. You will likely come across a multiple-offer situation in any hot housing market with low inventory and high demand. Make sure your lender is not holding you back.

Sellers Will Take Lenders into Account

Since sellers have multiple buyers to choose from, listing agents look at many different factors that go into a buyer's financing beyond their down payment amount. They want to be sure that a buyer's lender is experienced and familiar with the fast-paced housing market. That is why you need a lender who understands the challenges that buyers face and can help you stand out.

Communication is Key

One Point of Contact

When you are trying to find the right lender, you should have one point of contact handling your loan. Both you and your agent must have their cell phone number and email so you can reach them directly. Ideally, there will be an open flow of communication with text and email chains keeping everyone up to date.

Keep Everyone Up To Date

It is helpful for your lender and agent to know the state of your loan, what properties you are going to be pursuing, and what tactics you will be employing. When looking to buy a competitive property, things can and often do happen fast and you may need to reach out to your lender at all hours of the day. The best lenders understand that this is a normal aspect of their job and will take the time to support a buyer when they need it. 

Let Your Lender be Your Advocate

These factors make the difference for buyers getting the house they want so keep it in mind when choosing your lender. That is why communication between your lender and listing agents is also important when making a competitive offer. When you go to submit your offer, make sure your lender is calling the listing agent on your behalf. This is a chance for the lender to tell the listing agent about your qualifications and answer questions. This is something that your agent should facilitate but it is a worthwhile question to ask of your lender. You can use this when interviewing lenders to gauge their familiarity with common practices when working in our housing market.

Where to Find the Right Mortgage Lender

Start With a Recommendation From Your Agent

Now that you know how to pick the right mortgage lender you can start looking for the ones that fit your criteria. Start by talking with your real estate agent. They should have a list of recommended lenders who they have worked with in the past and who have a proven track record of success.

Make Sure You Choose a Reputable Lender

In general, I recommend avoiding big banks, online lenders, and credit unions. They have a bad reputation as being hard to contact and practices that can make them less competitive in a multiple-offer situation. Your experiences may vary but just be sure they know the area you are targeting and that they understand how the local market works. You can also ask friends, family, or coworkers who have bought a home recently who they used and what their experiences were.

Get Three Quotes!

Remember that you are looking for a mortgage lender who can combine a good working relationship as well as provide a good interest rate. I recommend at least talking to three lenders in your area to find the best fit. If you find one lender you like but another has a better rate, try asking the first one if they can meet or beat the other rate. It is a normal part of the process and can save you lots of money over the life of your loan. Finding the right mortgage lender can take time and effort but using the right one can mean the difference between getting your dream home or not.  

The Takeaway

Three Main Points: Communication, Reputation, and Rates

Choosing the right mortgage lender involves more than just securing a low interest rate. In competitive markets, your lender can make or break your offer. Sellers and listing agents evaluate not only your financing terms but also your lender's reputation, responsiveness, and market knowledge. Therefore, working with an experienced local lender who understands fast-paced markets gives you a significant advantage.

Communication is critical when selecting a lender. You need a single point of contact who responds quickly via phone, text, and email at all hours. Moreover, your lender should proactively advocate for you by calling listing agents to discuss your qualifications and answer questions. This personal touch can set your offer apart in multiple-offer scenarios.

Recommendations

Start by asking your real estate agent for lender recommendations based on their successful past transactions. Generally, avoid big banks, online lenders, and credit unions, as they often lack the local market expertise and accessibility needed in competitive situations. Instead, interview at least three local lenders to compare both rates and working relationships. Don't hesitate to ask your preferred lender to match a competitor's rate—it's standard practice. Ultimately, the right lender combines excellent communication, competitive rates, and the ability to help you win your dream home.