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VIDEO: Explain it like I’m 5 – The Mortgage Process

Reading Time: 4 minutes
Oct. 23, 2018.

How does the mortgage process work? Watch the short video above to help you understand everything you need to know about getting a mortgage in under two minutes. With that knowledge, it’s time to ask yourself the next question: Have you found a mortgage lender you can trust?

Does your lender have your back? 5 quick ways to tell

Many homebuyers believe because of recent scandals in the news good mortgage lenders are hard to find. For every good lender out there, it seems like 10 other lenders are trying to take your money. While that’s an emotional statistic and not a factual one, it speaks to an essential problem for homebuyers: If you can’t guarantee that your lender will be “good” or “bad,” how can you protect yourself from being taken advantage of?

Here are our top five tips for determining if a lender will help you find the mortgage that’s right for you: 

1. They don’t put on the pressure.

When you’re working with a lender who cares more about you than their bottom line, the sign is simple: They won’t be pushy.

They’ll sit down with you. Take a look at your finances. They’ll try to understand how much home you can realistically afford, considering where your life is now and where it will be in the next five years. (Be prepared — you may get tons of questions, and that’s a good thing.)

Good lenders also have a solid business of new and returning clients that they help on the regular. They’re not desperate to manipulate someone into getting a loan that they’ll end up regretting.

Remember: It’s a bad sign if a lender pushes a loan option onto you without an initial discovery conversation. Mortgage loans can be incredibly complicated, and what you qualify for depends on a variety of factors that change faster than you can say, “Can I just move into my dream home already?”

2. They love what they do.

Honestly, it’s not easy being a loan officer. You have to know a ton about the math side of things and a ton about people. You have to be extra vigilant about where each loan is in the homebuying process and look out for any changes that could possibly slow down a closing.

If you’re talking to a lender, and they can speak well of their company and their team members, that’s a great sign. Those team members and that company are (pardon us for shamelessly alluding to ourselves) the cornerstone of their success.

Remember: If your lender has been with their associates for years, or if they can’t stop gushing about how great their job is, that means they’ll be even more motivated to work hard for you.

3. They are super direct.

A good lender doesn’t mind telling you all of the nitty-gritty details about your loan. They’re upfront with you about what your loan is going to cost — even with hidden costs like homeowner’s insurance and the like. We’ve heard of scenarios where lenders will honestly recommend you check with your local credit union to see if you can save more money. Of course, there are other things to think about when getting a mortgage besides where you can get the lowest rate, and your lender will tell you about all of those, too.

Remember: Be sure to consider whether a lender has a history of closing loans on time. A loan with a low rate is worth nothing if your closing is delayed and someone else gets the home you want before you do.

On-time closings at the click of a button? Download the LoanFly app.

4. They can update your loan status faster than Facebook.

At a big bank, getting a loan can feel like one huge question mark. That’s because it’s harder for big bank lenders to find out how their loans are doing. Many times, they don’t even know their underwriting team and can’t drop by to check in. A smaller, private lender will be more likely to have an in-house team that can help them get answers fast. Solve problems quickly. That, in turn, means you’ll get quick solutions, and your loan will be more likely to close on time.

Remember: If you’ve heard people are being turned away from banks and told they can’t ever get a loan, know there are other options.

5. They (K.I.T.) keep in touch.

School yearbooks circa 1995-2005 all had one thing in common: The “K.I.T” or the Keep In Touch. Some people were genuine about their K.I.T. and used it sparingly. Others wrote it on the yearbooks of people they never even talked to in the lunchroom. With lenders, it’s the same principle. Though your loan officer might say they’ll let you know what’s going on with your loan, that doesn’t guarantee they will. So how can you tell?

Remember: Ask a lender how often on average they update their homebuyers on the status of their loan. Is it one email through the whole transaction, or do they regularly send updates with every change — big or small — regarding a loan?

Some lenders have developed technology to help them update you more quickly — like our free LoanFly app with its buyer-friendly Borrower Portal. For a better way to mortgage, download LoanFly and stay connected to your loan officer and your loan status in real-time. Use LoanFly to get prequalified on-the-fly and own in as few as 10 days.*

*During normal business hours. 10-day closing not typical. Not all loans will close in this timeframe.

For educational purposes only. Please contact a qualified professional for specific guidance.

Sources are deemed reliable but not guaranteed.