Short Answer
Compare lenders by looking at interest rates, APR, closing costs, customer service, and responsiveness. Get quotes from at least three different lenders, including a local bank, a credit union, a mortgage broker, and an online lender. Ask about the same loan type and amount so you can compare apples to apples. The cheapest option is not always the best. Choose a lender who communicates clearly and can close on time.
Choosing the right lender can save you thousands of dollars and prevent headaches during the closing process. Start by getting quotes from multiple sources. Local banks and credit unions often provide personalized service and may have portfolio loans with flexible terms. Mortgage brokers can shop multiple lenders for you and may find rates you cannot get on your own. Online lenders offer convenience and competitive rates but may provide less personal support. When comparing loan estimates, look beyond the interest rate. The APR includes the rate plus fees, giving you a better comparison. Review the closing costs, origination fees, and any points. Ask about the lender's track record of closing on time. A delayed closing can cost you money or even cause you to lose the home. A responsive lender who returns calls and emails promptly is worth paying a slightly higher rate. Read reviews and ask your agent for recommendations. I work with lenders who consistently deliver for my buyers.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I have seen too many buyers choose a lender based on a slightly lower rate and then struggle with poor communication and missed deadlines. The rate matters, but reliability matters more. I can give you referrals to lenders I have worked with for years who are transparent, responsive, and get the job done. Let us find the right lender for your situation before you start shopping for homes.
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