How do I choose a mortgage lender, and should I just use the one my agent recommends?

Should I just use the lender my real estate agent recommends?

It's a fine place to start. Agents usually recommend lenders who close on time, and that matters. But a referral doesn't mean you're getting the best price, so treat it as one of your quotes, not the only one. A good agent won't mind.

What should I compare?

1. Total cost. Rate and points and lender fees. Page 2, Section A of the Loan Estimate shows what the lender is charging you.
2. The 5-year cost on page 3. It's the easiest apples-to-apples number.
3. Whether the rate is locked, and for how long.
4. How they communicate. Do they explain things clearly, return calls the same day, and tell you what's next without you chasing them?
5. Experience with your loan type, whether that's FHA, VA, down payment assistance, self-employed income, or a condo.

Bank, credit union, broker, or direct lender: does it matter?

Each can work:

• Banks and credit unions sometimes have special programs for their customers.
• Mortgage brokers shop your loan with several wholesale lenders.
• Direct lenders make the loan decisions and control the process in-house.

We're both: a direct lender on conventional, VA, and Non-QM loans, and a broker for FHA, reverse mortgages, and HELOCs, where we work with approved partner lenders. Either way, we tell you upfront who your lender is and how we're paid. It's all on your Loan Estimate.

What matters more than the label is the price, the service, and whether they can actually close your loan on time.

When should I shop?

Get quotes once you're serious, ideally within the same couple of weeks, so the credit checks count as one. Ask each lender to price the same loan type, same down payment, and same lock period on the same day. Rates change daily.

Example scenario (illustrative)

A first-time buyer in Dallas gets a quote from their agent's preferred lender and two others on the same morning. The preferred lender's rate looks lowest, but page 2 shows a point and a half in fees. A second lender is slightly higher on rate with almost no fees, and it costs less over five years. The buyer shows the preferred lender that offer, and they match it. Everyone wins, and it took one morning.

Our take

Pick the lender who gives you the lowest total cost and the most confidence, and compare at least two. I'm always glad to be one of your quotes, and I'll walk you through mine line by line, fees included.