Signs Your Mortgage Lender Cares About You


It’s a loan officer and underwriter’s job to help mortgage borrowers get the funds they need to purchase a home. Banking is a business, so mortgage lenders want to help as many customers as possible. But this doesn’t mean every lender has your best interest in mind. Buying a home is a big financial decision and it’s important to get as much information from your lender as possible.

Unfortunately, there are good lenders and bad lenders. If you work with a bad lender, you risk agreeing to a mortgage that isn’t right for your circumstances. The good news is that there are ways to tell whether a mortgage lender cares about you.

  1. Ask questions

A good mortgage lender doesn’t recommend a random mortgage product. Mortgage lenders who care about their customers will ask a variety of questions to get an idea of a borrower’s circumstances, and then recommend a product based on the unique needs of each borrower.

There are several home loan options to choose from. The mortgage program that works for one borrower may not work for another. To help you choose the right program, the lender may ask questions about your assets, income, credit history, and the length of time you plan to live in the property. The more information they have, the easier it is to assist with your home buying needs.

  1. Provide warnings about certain products

Although there are several products to help borrowers purchase a home, just about every mortgage program has desirable and undesirable features. A mortgage lender who cares will highlight the positives of a particular program, as well as the negatives.

For example, an FHA mortgage is an ideal choice for cash-strapped borrowers because the program only requires 3.5% down and borrowers can qualify with a credit score as low as 500 to 580. The downside is that FHA home loans require mortgage insurance for the life of the loan, plus there’s an upfront mortgage insurance premium which makes this loan a costly alternative.

Likewise, an adjustable-rate mortgage typically starts off with a rate that’s lower than the rate on most fixed-rate mortgages, resulting in a lower monthly payment. But at the same time, adjustable-rate mortgages are unpredictable and can result in higher interest rates down the road.

Bottom line, you want a mortgage lender that shares the cold, hard facts about every mortgage program so you avoid future surprises.

  1. Provides helpful advice

A mortgage lender who cares goes the extra mile to help applicants qualify for a mortgage and get the lowest interest rate. You’ll have questions about the lending process. A good loan officer is willing and happy to answer your questions an offer recommendations to help you get the best terms. This might include credit tips to raise your score.

  1. Doesn’t approve a bad loan

A good mortgage lender also wants its borrowers to succeed. Finding out that a lender rejected your home loan application can be infuriating and frustrating. But you have to consider the situation from their viewpoint. Mortgage lenders want new customers, but not at the expense of setting borrowers up for failure.

If an underwriter determines that now isn’t the right time to approve your home loan, there’s a valid reason for this decision. Speak with your loan officer or underwriter to see why your application was rejected. Whether the reason was due to insufficient income, not enough assets or a poor credit history, put your pride aside and come up with a plan to rectify the issue. In all likelihood, your loan officer will offer suggestions and guidance so you can qualify in the future.