Here's a surprising fact that could impact your financial future: According to a Zillow survey, 72% of prospective homebuyers choose not to shop around for their mortgage. That's a significant majority of buyers who might be missing out on better rates, terms, or services by settling for the first lender they find.
Your mortgage lender isn't just a means to an end—they're your financial partner in what may be the largest purchase of your life.
The right match can mean:
Before diving into how to choose a lender, it's important to understand the different types available:
These are the financial institutions you're likely most familiar with. They often offer mortgages, alongside other banking services.
Potential Benefits:
Considerations:
These lenders, such as Contour Mortgage, specialize in home loans and often have deep knowledge of local markets.
Potential Benefits:
Considerations:
A growing segment of the mortgage market, these lenders operate primarily through digital platforms.
Potential Benefits:
Considerations:
Zillow's research reveals that about a quarter of buyers stick with the first lender they contact, often due to satisfaction with initial interactions. While finding a good match right away is possible, here's what you should evaluate to ensure you're making an informed choice.
Look for a lender who demonstrates:
According to the survey, 14% of buyers hesitate to shop around due to concerns about sharing financial information.
A trustworthy lender should:
Your ideal lender should offer:
It’s common for buyers to avoid shopping around because they believe it takes too much time and effort. Here's an efficient approach.
Start with a list of three to four lenders, including:
Prepare your basic information, once:
Despite the perception that lenders generally offer similar rates, significant variations exist in both rates and terms.
During your initial conversation, ask:
When comparing lenders, look beyond the basic interest rate to understand:
Loan Costs
Third-Party Costs
Pro Tip: Request a Loan Estimate from each lender you're seriously considering. This standardized form makes it easier to compare offers side by side.
Perhaps the most significant finding from Zillow's survey is that 30% of buyers avoid shopping around due to concerns about their credit score.
Here's what you should know:
When evaluating potential mortgage lenders, trust your instincts and be alert to warning signs that could signal potential issues. A reputable lender will never pressure you into making quick decisions about such a significant financial commitment, nor should they be reluctant to provide written estimates or clear explanations of their fees.
Consider it a warning sign if you're having difficulty getting timely responses to your questions during initial conversations—this often indicates how communications might flow throughout the entire loan process.
Above all, be wary of any promises that seem too good to be true or significantly different from what other lenders have offered. The best lenders prioritize transparency and understand that building trust is essential for a successful partnership.
With more than 30 years of experience serving homebuyers, we understand what matters most to our clients, including the following:
Choosing the right mortgage lender is a crucial decision in your home-buying journey. While the process may seem daunting, taking time to find the right match can lead to both immediate and long-term benefits.
Ready to explore your mortgage options? Our experienced loan officers are here to discuss your unique situation and help you understand the programs available to you. Contact Contour Mortgage today for a no-obligation consultation, and take the first step toward finding your perfect mortgage match.