[Chris]

I’m preparing to apply for a mortgage soon and want to make sure I’m going about it the right way. There are so many options out there—from online lenders like Rocket Mortgage and Better.com to traditional brick-and-mortar banks and credit unions.

I’ve seen mixed reviews online and would really appreciate hearing from people who have gone through the process recently.

Are online lenders really as fast and hassle-free as they claim? And are their rates actually better, or are there hidden costs I should be aware of? On the other hand, do traditional banks still offer competitive rates if you’re already a customer?

What’s the best strategy for comparing offers and making sure I get the most favorable terms?

Should I go through a mortgage broker, use an online comparison tool, or contact each lender directly?

Would love to hear any tips, red flags to watch out for, or personal experiences that could help guide my decision.

Thanks in advance!

[Adam]

Big banks and big name lenders like Rocket are usually the last place you want to go with. Find a couple experienced and reputable mortgage brokers, a local direct lender, and any credit union you have access to.

Have them all provide you their best offer based on the same scenario (price, loan amount, credit score, etc).

You want the rate and the total lender fees. Most only give you the rate without fees and that’s completely useless.

Compare the options based on the same day. That’s another common mistake I see people make when they shop lenders over a several day window.

Don’t base it all on the costs and rate. A good mortgage professional brings additional value in terms of customer service, staying in touch after closing, educating you on the process, etc.

If the mortgage professional you like most isn’t the cheapest, give them a chance to try to match or beat your best offer.

You don’t need a bunch of applications to do this. Even though it doesn’t hurt your credit, it’s a waste of your time and the lenders to fill out full applications everytime when you just need to tell them your credit score to compare apples to apples.

[Tony]

Every great rate I’ve found has come via a recommendation from my realtor.

Top producing realtors who work many clients at any given time are going to hear about the latest and greatest mortgage programs and rates, especially the poorly advertised local and regional lender programs and promotions.

In the first instance she referred me to a special program offered by a bank (3% down with no PMI and a 3.87 rate in 2015), and then later a referral to a broker who was working with a bank (required 10% down with no PMI (2023).

[Corine]

I check like five places. A credit union in Chicago gave me the best rate (I’m in VA).

Good luck and let me know if you want the credit unions name.

[Ernest]

Since you should only get one credit hit; regardless of how many places you apply to – I’d check with everybody.

Local credit union(s), mortgage brokers, online banks, etc.

[Kylie]

I used Lending Tree and found Tomo Mortage had the best rate, they were super easy to work with and helped me close in 21 days over the holidays!

I’ve recommended them to several friends, they’re fantastic and the easiest close I’ve ever had! (Not an ad, just genuinely impressed)

[Tabetha]

It’s been a while, but back in the day, Provident funding seem to have the lowest rates.

[Author]

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