If you’re buying a home, one of the most important decisions you’ll make—outside of the home itself—is choosing your lender. Many first-time buyers default to using their regular bank because it feels familiar. But when hundreds of thousands (or millions) of dollars are on the line, you need to ask: Is my bank the best choice—or just the easiest one?

Here’s a breakdown of how to choose the right mortgage lender, and the 10 key factors to consider before signing anything.

Should You Just Go With Your Bank?

Maybe. But don't assume it’s the best deal or the smoothest process.

Pros of using your bank:

• You already have a relationship
• They may offer loyalty perks or bundled services
• You might get slightly better rates for auto-draft or checking clients

Cons:

• Banks often move slowly
• They may have less flexible underwriting
• Loan officers might be less responsive or tied to rigid structures
• You may pay higher fees and not realize it

The bottom line: Your bank is one option. Not the only one. You should always compare at least 2–3 lenders before making a decision—including mortgage brokers and direct lenders.

The 10 Things to Look For in a Lender

• Responsiveness
  • If they’re slow to return a call before you’re under contract, imagine how it’ll be during escrow. Time kills deals—especially in hot markets. Choose someone who treats your loan like a priority.
• Rate Transparency
  • Ask for a Loan Estimate—not just a quoted rate. This federally required form shows all costs, fees, and APR. Two lenders may offer the same rate, but one could be charging you thousands more in fees.
• Speed & Turnaround Time
  • Can they close in 21 days or less? Some big banks take 40+ days. In a competitive market, sellers often go with the faster lender—even over higher offers.
• In-House Processing & Underwriting
  • Lenders who handle processing and underwriting internally tend to close faster and with fewer surprises. Ask whether your loan stays with them or gets passed around.
• Pre-Approval Strength
  • Some pre-approvals are just glorified “pre-qualifications.” A strong pre-approval includes credit, income, and asset verification—and is essential when submitting offers.
• Reputation With Agents
  • Real estate agents know which lenders deliver—and which ones ghost or collapse under pressure. Ask your agent who they trust. It can make or break your offer.
• Loan Program Options
  • First-time buyer? Self-employed? Jumbo loan? VA? You want a lender who offers multiple loan types and knows which one works best for your situation.
• Fee Structure
  • Origination fees, points, junk fees—it adds up. Compare the total cost of the loan, not just the interest rate. Sometimes a lower rate comes with higher upfront costs.
• Communication Style
  • You’ll be in constant contact during escrow. Choose someone who communicates how you like—whether that’s email, text, or phone. You want clarity, not confusion.
• Post-Closing Service
  • Some lenders sell your loan the day after closing and disappear. Others stay with you, offer refi options, or have concierge teams. Ask what happens after you close.

Final Thought

Don’t pick your lender like you pick a toothpaste brand.

Buying a home is likely the biggest financial decision of your life. Take the time to compare options, ask real questions, and make sure you’re choosing a lender who’s not just convenient—but capable, competitive, and fully committed to your success.

A great lender can win you the house. A bad one can lose it for you.

Ask questions. Compare estimates. And lean on your agent—they’ve seen it all.