Finding the right lender to fit your mortgage needs

Matching a mortgage lender

Choosing the right lender is more important than ever.

Last week, I had a client ask why I chose a particular lender for them. It was a great question, so I spent some time breaking down for them why we went the route we did.

When I work with clients, I look at their overall picture before deciding which lender to place their mortgage with. Rate, although an important consideration, is not always the deciding factor.Each lender has slightly different guidelines, policies, and processes.

Each client’s situation is slightly different.

The type of property you are looking to purchase can rule out certain lenders. As an example, if you are looking to purchase an acreage or rural property, some lenders are more receptive to those applications.

Your time frame may direct us to one lender over another. There are a few we work with who can process an application from start to finish really quickly.

If you own one or more rental properties, the way lenders calculate the rental income and expenses can make a significant difference in the amount you qualify to borrow. Some lenders have a cap on the number of properties their clients own, whereas others do not.

If you write an offer with a closing date way down the road, some lenders will only issue an approval if you are within 90 days of the closing date, while others will issue an approval up to 120 days out.

One of the most important things I look at is how the lender calculates any prepayment penalties. Some will use what they call their “posted” rate as opposed to their best rate, which can make a huge difference in the penalty levied if you pay your mortgage out early.

Another key item I consider, particularly if we are in a declining rate environment and your closing date is a ways away, is a lenders policy on rate float downs. Some lenders will allow only one change, some will do a look-back for the lowest rate and others will only allow one change.

Finally, if clients are currently in the middle of a term with one lender and are looking to make a move, it’s best to explore options with the current lender first. I would far rather we try to save any penalty by porting their current mortgage, or if the closing dates don’t quite line up going back to the same lender for a replacement mortgage.

Just because one lender has said no does not necessarily mean you don’t have any options.

Sometimes trying to find the right product for clients feels a bit like working on a Rubik’s cube. Getting all of the pieces to line up can be a bit of a puzzle, but mortgage clients today are fortunate to have access to many different lenders and many different options.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects



The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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