10 things to look for in a mortgage lender

Mortgage lenders provide financing to borrowers to help them buy homes, refinance existing properties and tap into their home equity. However, lenders do more than offer home loans—their loan officers will help you prepare to become a future homeowner. Some mortgage lenders like Guild Mortgage, also provide loan servicing, which includes collecting monthly payments, managing escrow accounts for taxes and insurance and handling any questions related to your loan.

A mortgage lender isn’t the same as a mortgage broker. A mortgage broker acts as a middleman between you and a lender. It’s not required to work with a mortgage broker. You can choose to work directly with a lender.

Working on behalf of a mortgage lender, your loan officer acts as your home financing advisor, providing the following services from loan application to closing and beyond as you purchase a home:

• Assistance to prepare for homeownership
• Guidance through the pre-approval process
• Education on which type of home loan program is best for you
• Instructions on what’s needed for your loan application
• Loan processing
• Notification when you’ve been approved or approved with conditions
• A mortgage Loan Estimate (LE) with estimated closing costs and your maximum loan amount
• Closing coordination

When buying a home, you may research your housing market, local neighborhoods and real estate agents. Whether you’re an experienced homebuyer or this is your first time, don’t overlook researching your prospective mortgage lender, too. Keep in mind that you’re looking for guidance to find the loan that best fits your life and excellent service long after your loan has closed. Here are the ten things to look for in your next mortgage lender:

• 1. A wide range of loan options

  Every borrower has unique homeownership goals, so there’s no such thing as a one-size-fits-all home loan. Having a mortgage lender in your corner that tailors a mortgage to fit your needs can help provide the opportunity to build long-term, sustainable wealth.

• 2. Customer service focus

  Your mortgage lender is there to offer guidance and support so you can focus on securing your dream home. That should include routine refinance check-ins to determine if you can benefit by refinancing with a lower rate or a shorter term. In addition, when you’re ready to buy again, it should be easy to reconnect with the local loan officer who closed your original loan.

• 3. Down payment assistance

  Down payment assistance can potentially save you thousands of dollars by reducing the amount you need to save for a down payment. If you’d like to become a homeowner sooner rather than later, look for a mortgage lender that offers assistance with down payment programs.

• 4. eClosings

  eClosings offer a faster closing process, make it easier to access and review loan documents, provide enhanced security protections and reduce paperwork. With eClosings, you can view loan documents from the comfort of your home as soon as they are released on a computer or mobile device. Close with confidence and ease, with more time to review your final loan documents prior to closing.

• 5. Loan officers in your neighborhood

  Whether you prefer to meet with a loan officer face-to-face or do everything online, it’s nice to have the option of working with a branch in your community.

• 6. On-time loan closings

  So you can prepare, find out how long your mortgage lender will need to close and if they guarantee on-time closings. For example, Guild Mortgage offers Homebuyer Express with a 17 Day Closing Guarantee for buyers in a hurry.* Guild Mortgage will pay qualifying customers $500 toward closing costs if delays solely by the company prevent the loan from closing on time.

• 7. No lender fee refinance

  Can you buy now and refinance your loan later with no lender fees if interest rates drop after you purchase? Or do they offer any refinance promotional programs?

• 8. Personalized service

  You’re a person, not a number. A personalized approach can be helpful if you have unique needs, are self-employed or have credit considerations.

• 9. Rate-locks

  Everyone wants a favorable interest rate, and there could come a point when you may want to lock-in a rate while you shop for a home. Programs like the Guild Mortgage Lock and Shop Program** offer rate protection for a specific time period. Best of all, if rates go down, this program includes a one-time rate float-down option.

• 10. Support long after your loan closes

  Often, mortgage lenders will sell your loan to another organization for servicing, so your mortgage lender and mortgage servicer are two separate entities. At Guild Mortgage, we lend and service the majority of the loans that we originate in-house. That means that we’re your loan partner throughout the life of the loan.