How to choose a mortgage lender

There's a lot to consider when deciding which mortgage lender is right for you. After all, certain lenders offer lower rates than others or programs for specific groups of people. Before you start the home-shopping process, you should pre-apply with three to four lenders. These lenders will provide you with a letter outlining your tentative rate and terms. This helps you compare lenders, choose the best option for you, shop for homes, and submit offers. You'll then pick your mortgage from these offers. Here's how to narrow down your initial search and ultimately decide on your lender. How to choose a mortgage lender Talk to us Are you living paycheck to paycheck, or do you have a financial success you're comfortable sharing with a reporter? Please fill out this quick form . Narrow down which lenders to pre-apply with The first step in choosing a mortgage lender is to pre-apply with three to five lenders so you can compare rates and terms. You'll ultimately select your mortgage from these initial offers. Here's what to consider when choosing which lenders. Loan types Get familiar with the different loan types available. Most lenders offer conforming, conventional mortgages — great for W-2 employees with a two-year steady work history, a 620 credit score or higher and at least a 5% down payment. Not all lenders offer other types of loans, though. …