Finding A Mortgage Lender For Your Home Loan

By: Jon Henshaw, M.A.

If you're buying a home, you will need a mortgage lender for your home loan. The home mortgage business is very lucrative, but it's also saturated. Therefore, mortgage lenders use many incentives in order to get your business. For example, if you're using a real estate agent to buy your home, that agent will most likely have a preferred mortgage lender or broker that they would like you to use.

Using a mortgage lender or broker that's recommended by your real estate agent isn't necessarily a bad thing. However, your real estate agent may only be referring them to you because they have a reciprocal referral arrangement with them. Under the Real Estate Settlement Procedures Act (RESPA), agents cannot receive money for referrals, but they can still create arrangements that are mutually beneficial. For this reason, it's important to shop around for lenders.

One of the best ways to find a good mortgage lender is to ask your friends and colleagues. People who have had an awful or great experience with a mortgage lender usually won't hesitate to tell you about their lender if they have something good or bad to say about them. Friends and colleagues will also be less likely to have an incentive from the mortgage lender for referring you to them

If you're not interested in asking all of your friends and family about their mortgage lender, there's another way to find one. The Internet has several online resources that can help you find the best deal and the lowest rate for your home purchase. Below are some of the top mortgage lender referral websites.

Most of these websites will give you at least three mortgage lender referrals. It's usually a good idea to talk to more than one lender. However, before you talk to a lender, make sure you've done your homework regarding current rates. This will help you determine if the mortgage lender is offering you a good deal. offers a free mortgage rate tool to help you research the best rates.

As with most big decisions, doing your homework, and finding good referrals is almost always the best route for choosing a mortgage lender.

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