How to Choose the Right Mortgage Lender

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January 13, 2022

When it comes to mortgage loans, it can be difficult to determine whether a lender is a good fit for your current and future needs. While factors like interest rates and fees are undoubtedly important, there are many other factors and elements that should be considered to ensure that you are choosing the best lender and securing the best possible mortgage. As leading providers of mortgage lending solutions for residential, construction, and commercial mortgages, the team at PHL Capital Corp knows how important it is to have the right lender on your side. That is why we have compiled some information to help you understand how to choose the right mortgage lender for your precise needs.

Learn about the different types of mortgages.

3 Tips to Find the Right Mortgage Lender for Your Needs

To find the perfect lender for your needs, it is worth performing the following actions:

1. Check and Improve Your Credit Score if Possible

To be approved for a mortgage, you will need to meet certain credit and income criteria based on the amount that you wish to borrow. A low credit score will deter most lenders, so it is worth checking your credit score. If it is below 600, you may have a difficult time being approved for a mortgage. To increase your credit score, try to pay off high-interest debts like credit cards and recurring loan payments. This will reduce your debt-to-income ratio and increase your credit score, making you more likely to be considered by various lenders.

2. Get Preapproved for a Mortgage

Preapproval is evidence that a lender has calculated your finances and determined the max amount you can afford to borrow. Getting preapproved for a mortgage before you need it will save you time later in the process. When you are ready to make an offer on a home, lenders will already have the information they need to process your home loan and will be more likely to present you with a mortgage option.

3. Ask the Right Questions

If you are considering choosing a particular lender, there are several questions you should ask before you make a final decision. These questions include:

  • Do I have the option of making prepayments without penalties?
  • How long do you expect the process to take?
  • What kind of fees will occur if I decide to break my mortgage before the end of the term?
  • Are there any additional fees/commissions that I should know about?
  • How do you prefer to communicate with clients (email, text, phone calls, or in person)? How quickly do you respond to messages?

The lender’s answers to these questions will help you determine if they are the right choice.

To learn more about our lending solutions or to fill out our mortgage application, get in touch with the team at PHL Capital Corp. We can be reached through our online contact form and will be happy to answer any questions you may have about our services.