Best Mortgage Company For Homebuyers: How To Pick The Right One

Published:
February 16, 2016
Last updated:
January 11, 2024
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When deciding which is the best mortgage company to work with, there is more to consider than whether they were your realtor’s preferred lender or they had a low rate advertised online. Working with a trustworthy and reputable company that you are comfortable with is an important consideration when making one of the most important financial decisions of your life.

The Consumer Financial Protection Bureau recommends that a prospective borrower check with at least 3 lenders during the mortgage shopping process; however, over 50% of borrowers wind up going with the first lender they talk to.

Given the overwhelming number of mortgage companies and the complexity of mortgage options available, it is easy to see why many will simply go with someone they were referred to or bank with. Unfortunately, there can be significant differences in rates, costs, and services when comparing one lender to another.

Do You Know What’s Important in a Mortgage Company?

So how do you decide which company is right for you? One place to start is to check the company’s reputation online. Look to see if they have been in business for a significant period of time and weathered the ups and downs of the mortgage industry.

Also check if they are rated highly by the Better Business Bureau and in good standing with state and federal regulators. It is easy these days to search the reviews of a company online. If information is hard to find or there are numerous bad reviews, it may be a good plan of action to try a different mortgage company.

Another suggestion is to check the company’s website. Do they provide helpful and insightful information? Is their website up to date? In today’s digital world, a company’s online presence is an indication of its performance in other areas of its business. If they neglect their presentation to the world online, you have to wonder what other aspects of their business they’re neglecting.

Three Things the Best Mortgage Company Will Offer

When it comes down to it, your home buying experience will depend on the caliber of mortgage company you choose. Here’s what you should expect for the very best mortgage company.

Transparency

Are you able to easily search current rates and costs? Is the company you are dealing with transparent in what they have to offer? Do they have tools available to help you track fluctuations in rates and closing costs over time? Unfortunately, even with today’s technology, many mortgage lenders choose not to show what rates they are able to offer at any given time.

Whether it’s because they think their rates are higher than their competitors, or they feel their sales department can convert more clients by talking to them before rate information is provided, many choose to keep what they can offer private. Some lenders will argue that every person is different, and each borrower’s situation is different.

While it is true that credit scores, down payment or equity, and type of transaction all have an impact on the terms available, there are many tools available that will reflect real-time pricing based on a borrower’s unique circumstances. Luckily, more and more lenders are moving towards transparency as borrowers become savvier, and their expectations of what information they should have at their fingertips increases

Today’s Mortgage Rates

Expertise

While a solid online presence is important, the mortgage process is complex. Having an experienced loan professional you trust and feel comfortable talking to is important. Can you call the company you are working with and talk to an experienced professional, or are you calling a call center with newly licensed order-takers that have limited knowledge of the mortgage business?

Does the person you are talking to take the time to answer your questions in an understandable way? While the mortgage industry is moving towards automation, the loan process is still very complex, with a lot of moving parts. It is extremely important that you are working with someone that has the knowledge and experience to deal with unexpected challenges that can often come up during the loan process.

Ease

In today’s highly regulated mortgage industry, there is no shortage of paperwork and documentation that needs to be provided:

  • Does the lender you work with have systems that make the process easier?
  • Do they have an intuitive online application that simplifies and streamlines the application process?
  • Do they have options to easily electronically sign your loan disclosures?
  • Can you safely and securely upload your loan documentation?

If you are uncomfortable with completing your paperwork online, are they flexible, and can they accommodate your desire to complete the paperwork the old-fashioned way? With all the new government regulations and strict lending requirements, you want to make sure the company you are dealing with can work with you in a way that you are comfortable with and help you navigate the process for a smooth transaction.

Clarity Around Loan Limits

It’s also important to understand that there are loan limits associated with mortgages. More specifically, loan limits refer to the highest loan amount you can take out before your mortgage enters “jumbo loan” territory.

Conforming loans and FHA loans both have limits on loan amounts. Conforming loan limits refer to the limit on the size of a home loan that Freddie Mac and Fannie Mae will purchase or guarantee. For FHA loans, loan limits represent the dollar cap that borrowers can get through the FHA.

VA loans don’t have an official loan limit as of 2020, but limits may still apply. Loan limits are usually increased at the beginning of every year to reflect the growth in home prices. These loan limits are assigned to every county in every state and are based on home prices in each county.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Start Your Search for the Best Mortgage Company

Now it’s time to put your knowledge to the test. To figure out what the best mortgage company is for you, you have to compare.

You can start by reading our guide Why Choose Sammamish As Your Mortgage Company? You’ll have insights into one of the highest-rated mortgage companies in the Pacific Northwest, and regardless of whether we fit your personal needs, you will gain insight and knowledge into what information and background the best mortgage company can provide you

Get an Instant Mortgage Rate Quote Today

Have Questions About Getting a Mortgage?

Are you curious about mortgages? We have the answers. Sammamish Mortgage is a local, family-owned company based in Bellevue, best. We offer mortgage programs to borrowers across the entire state, as well as the broader Pacific Northwest region, including Colorado, California, Oregon, and Idaho since 1992. Please contact us if you have mortgage-related questions.

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