How to Review a Home Loan Lender
November 8, 2023
Many first-time homebuyers feel like they are playing catch up with terms, jargon, and best practices when searching for a home loan and a new place to live. One of the big challenges for a new borrower is finding the right lender.
How should house hunters compare lenders and even service providers? Shopping around for the right financial institution or service means comparing online reputations, user reviews, and even Better Business Bureau reports where appropriate.
Fortunately, many third-party sites such as Investopedia and NerdWallet review lenders and can provide basic information about each in their review sections.
But not all borrowers are willing to simply take the word of somebody else in the form of a review. And then there’s the need to compare lenders personally.
After all, a review site won’t be able to give you any pointers about the “vibe” of a lender or the first impression factor you get when reviewing one. However, these review sites do have a lot to offer in terms of methodology.
You can learn a lot by reading the Methodology sections of these review pages, sometimes listed as “How We Review Lenders” or similar.
How Investopedia Reviews Lenders
Not sure how to proceed when comparing lenders? You could do a lot worse than what Investopedia does. For one group review page, “We looked at 24 construction lenders before choosing the best seven.”
These lenders have “expertise in several” different types of home loan programs, so potential clients have more options.
These lenders typically feature “lower down payment requirements and lower credit score minimums” to expand your chances of finding a competitive loan. When searching for a lender yourself, these are areas well worth reviewing.
How NerdWallet Reviews Mortgage Lenders
Reviewers at this site “collect over 50 data points from each lender and cross-check company websites, earnings reports, and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives.”
Is it necessary for a first-time homebuyer to do this extensive level of research when comparing lenders?
Not necessarily, but reviewing lender websites plus publicly available third-party information is crucial. For the consumer, think lender review sites, online reputation, user reviews (good and bad), and even Better Business Bureau information where appropriate.
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RELATED VIDEOS:
Get Your Questions Ready for Your Loan Officer
The Last Part of the Transaction Is the Mortgage Closing
Know What You Can Borrow With Prequalification
How should house hunters compare lenders and even service providers? Shopping around for the right financial institution or service means comparing online reputations, user reviews, and even Better Business Bureau reports where appropriate.
Fortunately, many third-party sites such as Investopedia and NerdWallet review lenders and can provide basic information about each in their review sections.
But not all borrowers are willing to simply take the word of somebody else in the form of a review. And then there’s the need to compare lenders personally.
After all, a review site won’t be able to give you any pointers about the “vibe” of a lender or the first impression factor you get when reviewing one. However, these review sites do have a lot to offer in terms of methodology.
You can learn a lot by reading the Methodology sections of these review pages, sometimes listed as “How We Review Lenders” or similar.
How Investopedia Reviews Lenders
Not sure how to proceed when comparing lenders? You could do a lot worse than what Investopedia does. For one group review page, “We looked at 24 construction lenders before choosing the best seven.”
These lenders have “expertise in several” different types of home loan programs, so potential clients have more options.
These lenders typically feature “lower down payment requirements and lower credit score minimums” to expand your chances of finding a competitive loan. When searching for a lender yourself, these are areas well worth reviewing.
How NerdWallet Reviews Mortgage Lenders
Reviewers at this site “collect over 50 data points from each lender and cross-check company websites, earnings reports, and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives.”
Is it necessary for a first-time homebuyer to do this extensive level of research when comparing lenders?
Not necessarily, but reviewing lender websites plus publicly available third-party information is crucial. For the consumer, think lender review sites, online reputation, user reviews (good and bad), and even Better Business Bureau information where appropriate.
------------------------------
RELATED VIDEOS:
Get Your Questions Ready for Your Loan Officer
The Last Part of the Transaction Is the Mortgage Closing
Know What You Can Borrow With Prequalification
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