Personal Insights

Mortgage Lenders: How to Choose a Home Loan Provider

When you’re researching home mortgage lenders, here’s how to be sure you’re signing up with the right one.

Most likely, your house will be the biggest purchase you’ll make in your lifetime. And if you’re like most Americans, buying a home means finding a private mortgage lender. Only about a third of home sales are paid for in cash, which means the majority of homebuyers—about two-thirds—take out a mortgage.

With so many homebuyers relying on mortgages to finance their home purchases, it’s not surprising that there are so many home mortgage lenders available to help finance your purchase. Throw a stone—or do a web search—and you’re likely to find a lender.

But how can you separate the best lenders from ones that are not as reputable? Here are a few key things you should consider—and some basic questions you may want to ask prospective lenders.

What to Look For in a Lender

The best mortgage lenders, like Regions Bank, offer three indispensable traits to homebuyers: stability, deep industry knowledge and personal service. These characteristics are vital because when you sign the dotted line on your mortgage, you’re entering into a relationship that will last up to 30 years. That’s why it pays to do your research and find a reputable lender that can meet your needs.

Stability

Stability can be tricky to define, but in general, you might want to look for mortgage lenders that have established track records and that regularly work in the part of the community where you want to buy. When considering a lender, feel free to ask them questions about their business model and about the volume of mortgages they have financed in your city or town. When you are reviewing your options, ask plenty of questions that will help you to understand how they work and whether it will be a good fit for your needs.

Start by asking:

• How long does the mortgage process usually take?
• What fees and commission will you charge?

Deep Understanding

When it comes to home lenders, expertise means a deep understanding of the industry, knowledge of the local market and current trends in real estate in your area. If you’re searching for a mortgage lender, you want to be able to talk to someone who can offer their deep expertise—down to the exact neighborhood where you’re considering buying a home.

Start by asking:

• How often do you provide mortgages in this local market?
• Is the market right for me to consider buying this particular home at this price?

Personal Service

The homebuying process can be full of confusing details and unfamiliar processes, especially for first-time homebuyers. Even people who already own a home and are buying a second property don’t always know the finer details of the mortgage they’re signing up for without the guidance of a mortgage professional. That’s why personal service is so important.

Start by asking:

• What will we need to meet in person for, and what can be done online?
• Will I have one point of contact or multiple points of contact?

You may also want to ask if the lender will also service your loan. Regions services the majority of loans we originate, but other lenders have different business models.

Don’t Hold Back Your Questions

The questions included here are samples, so make sure you get answers to your specific questions and concerns. When you’re looking for the best lender—whether it’s for a traditional commercial mortgage lender or a VA home loan lender—you should feel comfortable asking questions. A home mortgage lender that prioritizes personal service will take the time to listen to your questions. A good lender is a guide in the process, walking you through every step—from preapproval to closing—and demystifying the process along the way.

Buying a home is one of life’s most important milestones. While it’s a big decision, it doesn’t have to be needlessly complicated. Choosing the right loan provider for your home mortgage can simplify the process and make you feel taken care of. Contact Regions Bank today to learn more about home loans.

Three Things to Do

1. Find a mortgage loan officer near you.
2. Start to consider the cost of a mortgage and how that fits into your overall budget. Start with our mortgage calculators.
3. Learn more about the mortgage loan process.